New York S00323 imposes an annual tax on companies with high executive-to-employee pay ratios.

New York S00323 amends the tax law to impose an annual tax on companies subject to United States Securities and Exchange Commission pay ratio reporting requirements. The tax applies to companies where the chief executive's compensation is between 100 to 250 times the median pay of all employees, at a rate of 10 percent of the base tax liability. For companies where the pay ratio is 250 or greater, the tax rate increases to 25 percent of the base tax liability. This act takes effect on January 1, 2026, and applies to tax years commencing on or after that date.

New York S00323 imposes an annual tax on companies with high executive-to-employee pay ratios.

New York S00323 amends the tax law to impose an annual tax on companies subject to United States Securities and Exchange Commission pay ratio reporting requirements. The tax applies to companies where the chief executive's compensation is between 100 to 250 times the median pay of all employees, at a rate of 10 percent of the base tax liability. For companies where the pay ratio is 250 or greater, the tax rate increases to 25 percent of the base tax liability. This act takes effect on January 1, 2026, and applies to tax years commencing on or after that date.