MI HB6523

Imposes an annual surcharge on corporate tax liability for tax years beginning on or after October 1, 2023, for taxpayers required to disclose pay ratios under federal SEC regulations (17 CFR 229.402(u)).

Surcharge rates range from 0% to 50% based on disclosed pay ratio: 0% for ratios up to 50:1; 5% for 50:1 to 100:1; 10% for 100:1 to 200:1; 20% for 200:1 to 300:1; 30% for 300:1 to 400:1; 40% for 400:1 to 500:1; and 50% for 500:1 and higher.

Applies to unitary business groups if any member is required to make a pay ratio disclosure under federal regulations.

Department of Treasury may determine correct pay ratio and surcharge if SEC filing fails to disclose pay ratio or if disclosure was not determined in accordance with federal requirements.

Surcharge is administered and collected under Michigan's existing income tax laws and the General Sales Tax Act (1941 PA 122).