Bill > LB1025

This bill, known as the Social Media Collection of Consumer Data Tax Act, establishes an excise tax on social media platform businesses that collect consumer data from Nebraska residents, beginning January 1, 2027. A "social media platform business" is defined as a for-profit entity operating a social media platform that collects, uses, or shares "consumer data," which is any information that can be linked to an individual who has an account on the platform, regardless of whether they are charged. The tax is tiered based on the number of "Nebraska consumers" (residents whose Nebraska location is indicated by their address or IP address) whose data is collected monthly, with rates increasing as the number of Nebraska consumers exceeds 50,000, 250,000, and 500,000. The collected taxes will be deposited into a newly created Juvenile Mental Health Support Fund, administered by the Department of Health and Human Services, to fund juvenile mental health services. The bill also outlines how Nebraska consumers are identified, requires social media platform businesses to report and remit taxes similarly to sales and use taxes, allows for credits if other states impose identical taxes, treats related corporate entities as a single business for tax purposes, and grants the Tax Commissioner authority to create necessary rules and regulations.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=62649