Requires that certain companies pay an annual tax if the chief executive receives compensation 100 to 250 times greater than the median pay of all their employees.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A970
SPONSOR: Kim TITLE OF BILL:
An act to amend the tax law, in relation to imposing a tax related to
executive compensation
PURPOSE OR GENERAL IDEA OF BILL:
Establishes a 10% tax on companies where CEOs make more than one hundred
times the company's median pay and a 25% tax on companies where CEOs
make more than two hundred fifty times the company's median pay.
SUMMARY OF PROVISIONS:
Creates a tax on companies subject to United States Securities and
Exchange Commission pay ratio reporting requirements section 229.402 of
title 17 of the code of federal regulations, at the rate of 10% if the
company reports that the CEO makes one hundred times the median pay of
all their workers, and at the rate of 25% if the company reports that
the CEO makes two hundred fifty times the median pay of all their work-
ers.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
Our state and nation have never seen income inequality at levels that
exist today. Executive pay continues to climb to historic highs while
many workers have not seen a raise in years or decades despite the fact
that CEO and executive compensation is only possible with the hard work
of all the company's employees. This bill seeks to ensure all workers
are treated with respect and dignity - and that not all profits exclu-
sively go to the very top of the corporate structure.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A2582/Kim, Referred to Ways and Means S2858/Skoufis, Referred
to Investigations & Government Operations
2021-2022: A3691/Kim, Referred to Ways and Means S1813/Skoufis, Referred
to Investigations & Government Operations
2019-2020: A7454/Kim, Referred to Ways and Means S1659/Skoufis, Referred
to Investigations & Government Operations
(20) Referred to Finance, Investigations & Government Operations (19)
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
Click here to enter text.
This act shall take effect on January 1 of the following year and shall
apply to all tax years commencing on or after such date.
STATE OF NEW YORK
________________________________________________________________________
970
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. KIM, EPSTEIN, EACHUS -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law, in relation to imposing a tax related to
executive compensation
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 183-b to
2 read as follows:
3 § 183-b. Tax on companies subject to United States securities and
4 exchange commission pay ratio reporting requirements. Notwithstanding
5 any other provision of this chapter, or of any other law, for the period
6 beginning with the taxable years commencing on or after the first day of
7 January, two thousand twenty-six, an annual tax is hereby imposed upon
8 every company subject to the United States securities and exchange
9 commission pay ratio reporting requirements, pursuant to section 229.402
10 of title 17 of the code of federal regulations, at the rate of ten
11 percent of base tax liability if such company reports to the United
12 States securities and exchange commission a pay ratio of at least one
13 hundred to one but less than two hundred fifty to one on United States
14 securities and exchange commission disclosures; or at the rate of twen-
15 ty-five percent of base tax liability if such company reports to the
16 United States securities and exchange commission a pay ratio of two
17 hundred fifty to one or greater on United States securities and exchange
18 commission disclosures.
19 § 2. This act shall take effect January 1, 2026 and shall apply to all
20 tax years commencing on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00896-01-5
