Bill > S03702

This bill establishes a novel data privacy taxation mechanism in New York state that imposes a five percent tax on gross income for corporations that derive revenue from individual user data. The legislation creates the New York Data Fund, a special fund managed by a six-member board appointed by the governor and legislative leaders, with two government officials and four public members with expertise in finance and investments. The fund will collect the new corporate tax and distribute earnings to state taxpayers. The board is required to invest fund assets prudently, with a preference for in-state investments, and must maintain transparency by providing an annual public report detailing fund utilization, including the amount of money dispersed and the specific amount awarded to each taxpayer. The fund will be structured with an earnings reserve account and a dividend fund, with fifty percent of available income transferred to the dividend fund annually and an additional transfer to offset inflation. The bill includes strict governance provisions, such as requiring board members to disclose potential conflicts of interest and prohibiting the use of fund resources for political activities. The tax and fund will take effect 180 days after becoming law, with preparations for implementation allowed to begin immediately.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3702