HF1041

HF1041 (Legislative Session 94 (2025-2026))

Corporations with high principal executive officer additional tax imposed to median worker pay ratios, and companies disqualified from receiving state subsidies and grants.

Related bill: SF1936

AI Generated Summary

House File No. 1041 is a bill that aims to modify existing tax laws related to corporations in Minnesota. Authored by several legislators, this bill introduces an additional tax on corporations that have a high ratio of compensation between their principal executive officer (CEO) and their median worker. Furthermore, companies that are subject to this increased tax will also be disqualified from receiving state subsidies and grants. The bill proposes these changes through amendments to sections of the Minnesota Statutes 2024.

In essence, the bill seeks to: 1. Impose an extra tax on certain corporations based on the pay disparity between their highest executive and the average worker. 2. Disqualify these corporations from eligibility for state financial grants if they are subject to this additional tax.

This initiative looks to address income inequality within businesses benefiting from state resources, thereby promoting more equitable compensation practices.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 16, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 18, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Introduces new tax brackets based on CEO to median worker pay ratios."
      ],
      "removed": [],
      "summary": "The bill modifies tax code related to corporate franchise taxes under section 290.06.",
      "modified": [
        "Adjusts conditions under which corporations qualify for state grants based on tax bracket."
      ]
    },
    "citation": "290.06"
  }
]