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Bill > HF1041
MN HF1041
Corporations with high principal executive officer additional tax imposed to median worker pay ratios, and companies disqualified from receiving state subsidies and grants.
summary
Introduced
02/17/2025
02/17/2025
In Committee
02/17/2025
02/17/2025
Crossed Over
Passed
Dead
Introduced Session
94th Legislature 2025-2026
Bill Summary
A bill for an act relating to taxation; corporate franchise; imposing an additional tax on certain corporations with high principal executive officer to median worker pay ratios; disqualifying certain companies from receiving state subsidies and grants; amending Minnesota Statutes 2024, sections 16B.981, by adding a subdivision; 290.06, subdivision 1.
AI Summary
This bill introduces a new tax structure and grant eligibility restrictions for corporations based on the pay ratio between their principal executive officer and median worker pay. Specifically, the bill imposes graduated additional taxes on corporations with high pay ratios, ranging from 0.2% for companies with a pay ratio between 50:1 and 100:1, up to 1.5% for companies with a pay ratio of 500:1 or higher. The pay ratio is calculated based on federal regulations, with unitary businesses (groups of related corporate entities) required to calculate their cumulative pay ratio. Additionally, corporations subject to these increased tax rates will be ineligible to receive state grants. The new tax structure and grant restriction will take effect for taxable years beginning after December 31, 2025. The aim of the bill appears to be discouraging extreme income inequality within corporations by financially penalizing companies with very high executive-to-worker compensation disparities and limiting their access to state financial support.
Committee Categories
Budget and Finance
Sponsors (14)
Andy Smith (D)*,
Brion Curran (D),
Alex Falconer (D),
Cedrick Frazier (D),
Mike Freiberg (D),
Emma Greenman (D),
Jess Hanson (D),
Amanda Hemmingsen-Jaeger (D),
Kaohly Her (D),
John Huot (D),
Liish Kozlowski (D),
Liz Lee (D),
Kristi Pursell (D),
Samantha Vang (D),
Last Action
Author added Falconer (on 02/19/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1041&ssn=0&y=2025 |
| BillText | https://www.revisor.mn.gov/bills/text.php?number=HF1041&version=0&session=ls94&session_year=2025&session_number=0&format=pdf |
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