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Bill > SF3425


MN SF3425

MN SF3425
Social media platform businesses excise tax establishment


summary

Introduced
04/24/2025
In Committee
04/24/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to taxation; establishing an excise tax on certain social media platform businesses; proposing coding for new law in Minnesota Statutes, chapter 295.

AI Summary

This bill establishes a new excise tax on social media platform businesses based on the number of Minnesota consumers from whom they collect data. The tax is structured in tiers: businesses with fewer than 100,000 Minnesota consumers pay no tax, those with 100,000-500,000 consumers pay $0.10 per month per consumer over 100,000, those with 500,000-1,000,000 consumers pay $40,000 plus $0.25 per month per consumer over 500,000, and those with over 1,000,000 consumers pay $165,000 plus $0.50 per month per consumer over 1,000,000. A "consumer" is defined as an individual who establishes an account on a social media platform, and "consumer data" includes any information that can identify or be linked to a consumer. The bill provides detailed rules for determining who counts as a Minnesota consumer, including presumptions based on address and IP location. Social media platform businesses must maintain records, file returns, and pay taxes according to prescribed methods, with revenues deposited into the general fund. The tax is effective for consumer data collected after December 31, 2025, and applies to for-profit entities operating social media platforms that collect data from more than 100,000 Minnesota consumers monthly.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Referred to Taxes (on 04/24/2025)

bill text


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