SB0405

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, relative to the "CEO Pay Disparity Tax Act."

Introduced·1/28/25
Draft Text

Imposes a pay disparity surcharge on companies with significant CEO-to-employee pay gaps.

The bill introduces the "CEO Pay Disparity Tax Act," which imposes a surcharge on companies operating in Tennessee where the top executive's pay is at least 100 times the median employee income. The surcharge is an additional 0.1% on the excise tax rate. The Department of Revenue will create rules to implement this tax, which takes effect July 1, 2025.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Finance, Ways and Means Committee
Next
Committee decision

Sponsors

D
1
0
Democratic CaucusRepublican Caucus

History

Apr 17

Senate

Assigned to General Subcommittee of Senate Finance, Ways & Means Committee

Mar 18, 2025

Senate

Refer to Senate Finance, Ways & Means Revenue Subcommittee w/ negative recommendation

Feb 18, 2025

Senate

Refer to Senate F,W&M Revenue Subcommittee