Purpose of the Bill

The bill aims to establish a new taxation system in Minnesota for social media platform businesses that collect consumer data. This is part of an effort to regulate the activities of social media companies and leverage revenue from their operations focused on Minnesota residents.

Main Provisions

• Excise Tax Introduction: The bill proposes an excise tax on social media companies based on the number of Minnesota residents from whom they collect data each month.
• Tax Rates:
  • Companies collecting data from up to 100,000 Minnesota users are not taxed.
  • For data collected from more than 100,000 but less than or equal to 500,000 users, a tax of $0.10 per user monthly after the first 100,000 users is proposed.
  • For data collected from 500,000 to 1,000,000 users, the rate is a flat $40,000 per month plus $0.25 per user over 500,000.
  • Over 1,000,000 users, the tax is $165,000 per month plus $0.50 per user.
• Definitions: The bill defines key terms like "consumer data," "social media platform business," and "Minnesota consumer" for enforceability.
• Tax Administration: The bill outlines the mechanics of recording, reporting, and payment of this new tax, including provisions for audits and appeals.

Significant Changes to Existing Law

This bill proposes a new section in the Minnesota Statutes, thereby introducing a novel tax that specifically targets social media platforms—this industry-specific tax did not previously exist.

Relevant Terms

social media, excise tax, Minnesota consumers, data collection, tax rate, social media platforms, commissioner of revenue, consumer data, residents, tax administration.