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.

HB 431, the "CEO Pay Disparity Tax Act," imposes an additional 0.1% surcharge on the existing 6.5% excise tax for Tennessee-based companies where the top executive earns at least 100 times more than the median pay of all employees. This applies to companies conducting business in Tennessee, targeting those with extreme pay gaps between executives and typical workers. The surcharge is calculated on the company’s net earnings from the previous fiscal year. The law would take effect for tax years beginning July 1, 2025, and requires the state department to create implementing rules.