MN SF1936

Imposes additional corporate franchise taxes on corporations with CEO-to-median-worker pay ratios of 50:1 or higher, with rates ranging from 0.2% (50:1 to 100:1) up to 1.5% (500:1 or higher) added to the base 9.8% rate

Corporations subject to the additional pay ratio tax are disqualified from receiving state grants

Pay ratio is determined using the SEC-required disclosure under federal regulations (17 CFR 229.402(u)(1)(iii)), with unitary businesses calculating cumulative ratios across all group members

Tax provisions take effect for taxable years beginning after December 31, 2025; grant disqualification takes effect January 1, 2026