Bill > SF3197

This bill establishes a new excise tax on social media platform businesses that collect consumer data from Minnesota residents, with tax rates that increase based on the number of Minnesota consumers. Specifically, the tax is zero for platforms with fewer than 100,000 Minnesota consumers, $0.10 per month for consumers between 100,000 and 500,000, $40,000 plus $0.25 per month for consumers between 500,000 and 1,000,000, and $165,000 plus $0.50 per month for consumers over 1,000,000. The bill defines key terms such as "consumer," "consumer data," and "social media platform business," and provides rules for determining who counts as a Minnesota consumer, including presumptions based on address and IP location. The tax applies to for-profit entities that collect data on more than 100,000 Minnesota consumers in a month, with provisions for controlled corporate groups to be treated as a single entity. The bill includes administrative details such as recordkeeping requirements, filing procedures, interest calculations, and specifies that tax revenues will be deposited in the general fund. The tax will become effective for consumer data collected after December 31, 2025, and allows businesses a credit if another state imposes an identical tax on the same consumers.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3197&ssn=0&y=2025