Bill > HB5396

This bill amends Michigan's Income Tax Act of 1967 by adding a new Section 684. The key provisions are: 1. It imposes an annual surcharge on corporate taxpayers that are required to disclose their pay ratio (the ratio of the CEO's compensation to the median employee's compensation) under federal securities regulations. The surcharge rate ranges from 0% to 50% of the taxpayer's state income tax liability, depending on the disclosed pay ratio. 2. The surcharge does not apply to taxpayers that are exempt from filing a state income tax return. 3. For a unitary business group, the surcharge applies if any member of the group is required to disclose a pay ratio. 4. If a company fails to disclose the pay ratio or discloses it incorrectly, the state tax department can determine the correct ratio and the applicable surcharge. 5. The surcharge is considered part of the state's corporate income tax and will be administered, collected, and enforced like the rest of the state's corporate income tax provisions.