HOUSE BILL 16

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Bill McCamley

AN ACT

RELATING TO TAXATION; IMPOSING A SURTAX ON A CORPORATION THAT PAYS ITS CHIEF EXECUTIVE OFFICER A SALARY THAT IS AT LEAST ONE HUNDRED TIMES GREATER THAN THE AVERAGE SALARY OF EMPLOYEES NOT IN UPPER MANAGEMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Corporate Income and Franchise Tax Act is enacted to read:

     "[NEW MATERIAL] SURTAX ON CERTAIN CORPORATIONS.--A surtax equal to a rate of one percent is imposed upon the net income of every domestic corporation, and upon the net income of every foreign corporation, employed or engaged in the transaction of business in, into or from this state or deriving any income from any property or employment within this state, that pays its chief executive officer or similar senior corporate officer or executive a salary that is at least one hundred times greater than the average salary of all other employees of the corporation that are not in upper management."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2015.

- 2 -