Purpose of the Bill

This bill aims to establish a new excise tax on social media platform businesses based on their collection of consumer data from Minnesota residents.

Main Provisions

• Tax Imposition: The bill introduces a tax on social media companies that collect consumer data from users in Minnesota. The tax is calculated based on the number of Minnesota residents whose data is collected.
• Tax Rates:
  • No tax for businesses with 100,000 or fewer Minnesota users.
  • A tax of $0.10 per user per month for those with more than 100,000 but up to 500,000 Minnesota users.
  • For 500,000 to 1,000,000 users, there is a base tax of $40,000 plus $0.25 per user per month over 500,000.
  • For over 1,000,000 users, a base of $165,000 plus $0.50 per user per month.

Definitions and Clarifications

• Consumer: An individual with an account on a social media platform who resides in Minnesota.
• Social Media Platform Business: Defined as a for-profit entity collecting data from over 100,000 Minnesota consumers in a month.

Significant Changes and Administration

• Tax Credit: The provision allows for a tax credit if another state imposes a similar tax.
• Recordkeeping and Reporting: Social media businesses must maintain records and report taxes as specified by the commissioner of revenue.
• Revenue Management: Tax revenues, including penalties, are to be deposited into Minnesota's general fund.

Relevant Terms

• Social media tax
• Consumer data
• Minnesota residents
• Excise tax
• Data collection