S T A T E O F N E W Y O R K
________________________________________________________________________
7454
2019-2020 Regular Sessions
I N A S S E M B L Y
May 3, 2019
___________
Introduced by M. of A. KIM -- 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:
Section 1. The tax law is amended by adding a new section 183-b to
read as follows:
§ 183-B. TAX ON COMPANIES SUBJECT TO UNITED STATES SECURITIES AND
EXCHANGE COMMISSION PAY RATIO REPORTING REQUIREMENTS. NOTWITHSTANDING
ANY OTHER PROVISION OF THIS CHAPTER, OR OF ANY OTHER LAW, FOR THE PERIOD
BEGINNING WITH THE TAXABLE YEARS COMMENCING ON OR AFTER THE FIRST DAY OF
JANUARY, TWO THOUSAND TWENTY, AN ANNUAL TAX IS HEREBY IMPOSED UPON EVERY
COMPANY SUBJECT TO THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
PAY RATIO REPORTING REQUIREMENTS, PURSUANT TO SECTION 229.402 OF TITLE
17 OF THE CODE OF FEDERAL REGULATIONS, AT THE RATE OF TEN PERCENT OF
BASE TAX LIABILITY IF SUCH COMPANY REPORTS TO THE UNITED STATES SECURI-
TIES AND EXCHANGE COMMISSION A PAY RATIO OF AT LEAST ONE HUNDRED TO ONE
BUT LESS THAN TWO HUNDRED FIFTY TO ONE ON UNITED STATES SECURITIES AND
EXCHANGE COMMISSION DISCLOSURES; OR AT THE RATE OF TWENTY-FIVE PERCENT
OF BASE TAX LIABILITY IF SUCH COMPANY REPORTS TO THE UNITED STATES SECU-
RITIES AND EXCHANGE COMMISSION A PAY RATIO OF TWO HUNDRED FIFTY TO ONE
OR GREATER ON UNITED STATES SECURITIES AND EXCHANGE COMMISSION DISCLO-
SURES.
§ 2. This act shall take effect January 1, 2020 and shall apply to all
tax years commencing on or after such date.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04324-01-9