SF1636

Reduces the franchise tax rate for certain corporations with a pay ratio of 15 to 1 or less.

Reduces the franchise tax rate for eligible corporations with a pay ratio of 15 to 1 or less. The bill amends Minnesota Statutes to define "eligible corporation" as a corporation with a pay ratio not greater than 15 to 1 in a taxable year. The pay ratio is 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.