Tennessee · 114th Regular Session (2025-2026) · Bill

SB 405: Taxes, Excise - As introduced, enacts the "CEO Pay Disparity Tax Act," which imposes a pay disparity surcharge in the amount of an additional 0.1 percent to the standard 6.5 percent excise tax rate on each company whose top executive is paid at least 100 times more than the median income of the company's employees. - Amends TCA Title 67, Chapter 4.

In committee Last action April 17, 2026: Assigned to General Subcommittee of Senate Finance, Ways & Means Committee

Plain-language summary

SB 405 is a bill introduced in the Tennessee Senate on January 28, 2025. According to its official title, it concerns: Taxes, Excise - As introduced, enacts the "CEO Pay Disparity Tax Act," which imposes a pay disparity surcharge in the amount of an additional 0.1 percent to the standard 6.5 percent excise tax rate on each company whose top executive is paid at least 100 times more than the median income of the company's employees. - Amends TCA Title 67, Chapter 4. Primary sponsor: London Lamar (Democratic). Most recent recorded action (April 17, 2026): Assigned to General Subcommittee of Senate Finance, Ways & Means Committee.

Sponsors

Primary sponsor: London Lamar (Democratic).