BILL NUMBER: S323
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the tax law, in relation to imposing a tax related to
executive compensation
 
PURPOSE:
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.
 
SUMMARY OF PROVISIONS:
Section 1: The tax law is amended by adding section 183-b which 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 workers.
Section 2: Sets the effective date.
 
JUSTIFICATION:
Our state and nation are experiencing unprecedented levels of income
inequality. Executive compensation has reached historic highs, while
many workers have gone years or decades without meaningful wage
increases. This disparity persists despite the fact that the achieve-
ments and profitability of any company are only made possible through
the collective efforts of its entire workforce. This bill seeks to
ensure all workers are treated with respect and dignity - and that not
all profits exclusively go to the very top of the corporate structure.
 
LEGISLATIVE HISTORY:
Senate
2017: No Senate Same-As 2018: No Senate Same-As
2019: S1659, Reported and Committed to Finance
2020: S1659, Referred to Investigations and Government Operations
2021: S1813, Referred to Investigations and Government Operations
2022: S1813, Referred to Investigations and Government Operations
2023: S2858, Referred to Investigations and Government Operations
2024: S2858, Referred to Investigations and Government Operations
Assembly
2017: A6236-A, Referred to Ways and Means
2018: A6236-A, Amend and Recommit to Ways and Means
2019: A7454, Referred to Ways and Means
2018: A6236A, Referred to Ways and Means
2020: A7454, Referred to Ways and Means
2021: A3691, Referred to Ways and Means
2022: A3691, Referred to Ways and Means
2023: A2582, Referred to Ways and Means
2024: A2582, Referred to Ways and Means
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect January 1, 2026 and shall apply to all 20 tax
years commencing on or after such date.