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MI HB5396

Bill

Official Source

Status

Introduced

1/16/2024

Primary Sponsor

Dylan Wegela

Click for details

Origin

House of Representatives

102nd Legislature

AI Summary

  • Imposes an annual surcharge on taxpayers required to disclose executive-to-employee pay ratios under federal SEC regulations, effective for tax years beginning October 1, 2024
  • Surcharge rates range from 0% (pay ratio ≤50:1) to 50% (pay ratio ≥500:1) of state tax liability, with graduated increases at 50:1, 100:1, 200:1, 300:1, 400:1, and 500:1 thresholds
  • Applies to unitary business groups if any member is required to make a pay ratio disclosure under 17 CFR 229.402(u)
  • Department of Treasury may determine correct pay ratio and surcharge if SEC filing fails to disclose the ratio or if disclosure was not made in accordance with federal regulations
  • Surcharge is administered and collected as part of Michigan income tax under existing tax laws

Legislative Description

Corporate income tax: rate; pay ratio surcharge for certain corporations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 684.

Corporate income tax: rate

Last Action

Bill Electronically Reproduced 01/16/2024

1/17/2024

Committee Referrals

Tax Policy1/16/2024

Full Bill Text

No bill text available