Purpose of the Bill

The bill aims to establish a new excise tax on social media platform businesses that collect consumer data from Minnesota residents. This tax is intended to address the economic activities of social media companies operating within Minnesota's jurisdiction.

Main Provisions

• Excise Tax Implementation: The bill imposes a tax on social media businesses based on the number of Minnesota users whose data is collected:

  • No tax for businesses collecting data from 100,000 or fewer users.
  • A levy of $0.10 per user per month for collections between 100,001 to 500,000 users.
  • A base tax of $40,000 plus $0.25 per user per month for collections between 500,001 to 1,000,000 users.
  • A base tax of $165,000 plus $0.50 per user per month for collections over 1,000,000 users.

• Definitions:

  • "Consumer" refers to an individual who establishes an account with a social media platform.
  • "Consumer data" includes any information linked to the consumer.
  • "Social media platform business" denotes for-profit entities engaging in data collection of more than 100,000 Minnesota consumers per month.

• Taxpayer Accountability: The bill presumes any consumer with a Minnesota address or IP address is a Minnesota user, with the burden of proof falling on the business to prove otherwise.

• Credits and Record Keeping: Allows for tax credits if the same tax is paid in another jurisdiction and mandates record-keeping by the platforms.

Significant Changes to Existing Law

This legislation introduces a new tax structure specifically targeting social media platforms, which currently does not exist in Minnesota statutes. It aligns tax mechanisms with general taxation rules and procedures already in place, and affects business entities handling substantial consumer data from Minnesota residents.

Relevant Terms

social media, excise tax, Minnesota consumers, consumer data, data collection, tax credit, general fund, social media platform business, consumer information, data privacy, state revenue.