Minnesota SF1936 imposes additional taxes on corporations with high executive-to-worker pay ratios and disqualifies them from state grants.

Minnesota SF1936 introduces additional taxes on corporations with high principal executive officer to median worker pay ratios. The tax rate increases with the pay ratio, ranging from 0.2% for ratios between 50:1 and 100:1, to 1.5% for ratios of 500:1 or more. The bill also disqualifies corporations subject to these additional taxes from receiving state subsidies and grants, effective January 1, 2026. The tax provisions apply to taxable years beginning after December 31, 2025.

Minnesota SF1936 imposes additional taxes on corporations with high executive-to-worker pay ratios and disqualifies them from state grants.

Minnesota SF1936 introduces additional taxes on corporations with high principal executive officer to median worker pay ratios. The tax rate increases with the pay ratio, ranging from 0.2% for ratios between 50:1 and 100:1, to 1.5% for ratios of 500:1 or more. The bill also disqualifies corporations subject to these additional taxes from receiving state subsidies and grants, effective January 1, 2026. The tax provisions apply to taxable years beginning after December 31, 2025.