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.

SB 405, the "CEO Pay Disparity Tax Act," would impose an additional 0.1% tax on companies in Tennessee where the top executive earns at least 100 times more than the company's median employee pay. This surcharge applies to the standard 6.5% excise tax on business net earnings, targeting businesses operating in Tennessee with extreme pay gaps. The tax would take effect for tax years beginning July 1, 2025, and requires the state department to create implementing rules. It directly affects Tennessee-based corporations meeting the pay disparity threshold, without changing existing tax rates for other businesses.