Minnesota SF1636 proposes a reduced franchise tax rate for corporations with a pay ratio of 15 to 1 or less.

Minnesota SF1636 amends the state's tax code to provide a reduced franchise tax rate for eligible corporations. An "eligible corporation" is defined as a corporation with a pay ratio not greater than 15 to 1 in a taxable year. The pay ratio is calculated as the ratio of the average executive hourly compensation paid to the five most highly compensated executives or officers in the immediately preceding taxable year to the average hourly compensation paid to the lowest five percent of salaried employees, hourly employees, or contractors in the same year.

Minnesota SF1636 proposes a reduced franchise tax rate for corporations with a pay ratio of 15 to 1 or less.

Minnesota SF1636 amends the state's tax code to provide a reduced franchise tax rate for eligible corporations. An "eligible corporation" is defined as a corporation with a pay ratio not greater than 15 to 1 in a taxable year. The pay ratio is calculated as the ratio of the average executive hourly compensation paid to the five most highly compensated executives or officers in the immediately preceding taxable year to the average hourly compensation paid to the lowest five percent of salaried employees, hourly employees, or contractors in the same year.