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MI HB4603
Bill
Status
6/10/2025
Primary Sponsor
Dylan Wegela
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AI Summary
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Imposes an annual surcharge on corporations required to disclose CEO-to-median-worker pay ratios under SEC regulations, effective for tax years beginning October 1, 2025
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Sets surcharge rates based on pay ratio tiers: 0% for ratios of 50:1 or less, 5% for ratios between 50:1 and 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 ratios of 500:1 or higher
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Applies the surcharge to the taxpayer's corporate income tax liability after apportionment to Michigan but before credits are calculated
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Extends the surcharge to unitary business groups if any member of the group is required to make a pay ratio disclosure
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Authorizes the Department of Treasury to determine the correct pay ratio and surcharge if a company fails to disclose or improperly calculates its pay ratio
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 06/10/2025
6/11/2025