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SENATE DOCKET, NO. 1711 FILED ON: 1/19/2023
SENATE . . . . . . . . . . . . . . No. 1892
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Susan L. Moran
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act taxing the mental health impacts of social media.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :Susan L. MoranPlymouth and Barnstable 1 of 9
SENATE DOCKET, NO. 1711 FILED ON: 1/19/2023
SENATE . . . . . . . . . . . . . . No. 1892
By Ms. Moran, a petition (accompanied by bill, Senate, No. 1892) of Susan L. Moran for
legislation to tax the mental health impacts of social media. Revenue.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act taxing the mental health impacts of social media.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. The General Laws is hereby amended by adding, after chapter 64N, the
2following chapter:-
3 CHAPTER 64O: TAX ON THE COLLECTION OF CONSUMER DATA BY
4COMMERCIAL DATA COLLECTORS
5 Section 1. Definitions
6 For the purpose of this chapter, the following words shall have the following definitions:
7 “Commercial Data Collector”, a for-profit entity that:
8 (a) Collects, maintains, uses, processes, sells, or shares consumer data in support of its
9business activities;
10 (b) Collects consumer data, other than consumer contact information, on more than one
11million individual Massachusetts consumers in a month within the calendar year; and 2 of 9
12 (c) Owns, maintains, or otherwise manages a social media site.
13 “Consumer”, an individual who purchases goods and services from a commercial data
14collector or uses the services of a commercial data collector, whether charged for those services
15or not.
16 “Consumer contact information”, (a) a consumer’s email address, telephone number,
17telefax number, home address, mailing address; or (b) credit card information necessary to
18engage in a sales transaction.
19 “Consumer data”, any information that identifies, relates to, describes, is capable of being
20associated with, or could reasonably be linked with a consumer, whether directly submitted to
21the commercial data collector by the consumer or derived from other sources.
22 “Department”, the department of revenue.
23 “Massachusetts consumer”, a consumer whose primary residence is in the commonwealth
24of Massachusetts.
25 “Social media site”, any website that facilitate user participation, networking and
26collaboration through the submission of user generated content.
27 Section 2. Tax Liability
28 There is hereby imposed a monthly tax on the collection of the consumer data of
29individual Massachusetts consumers by commercial data collectors. The tax shall apply
30regardless of the format, electronic or otherwise, in which the consumer data is collected by the
31commercial data collector. 3 of 9
32 The tax shall be imposed on commercial data collectors at the following rates based on
33the number of Massachusetts consumers a commercial data collector collects data on within the
34month:
35 A commercial data collector that collects data on 1 million or fewer Massachusetts
36consumers shall not pay any additional tax under this section.
37 A commercial data collector that collects data on more than 1 million but less than or
38equal to 2 million Massachusetts consumers shall pay a tax of 5 cents per month on the number
39of Massachusetts consumers the commercial data collector serves.
40 A commercial data collector that collects data on more than 2 million but less than or
41equal to 3 million Massachusetts consumers shall pay a tax of 50 thousand dollars per month
42plus 10 cents per month on the number of Massachusetts consumers the commercial data
43collector serves.
44 A commercial data collector that collects data on more than 3 million but less than or
45equal to 4 million Massachusetts consumers shall pay a tax of 150 thousand dollars per month
46plus 15 cents per month on the number of Massachusetts consumers the commercial data
47collector serves.
48 A commercial data collector that collects data on more than 4 million but less than or
49equal to 5 million Massachusetts consumers shall pay a tax of 300 thousand dollars per month
50plus 20 cents per month on the number of Massachusetts consumers the commercial data
51collector serves. 4 of 9
52 A commercial data collector that collects data on more than 5 million but less than or
53equal to 6 million Massachusetts consumers shall pay a tax of 500 thousand dollars per month
54plus 25 cents per month on the number of Massachusetts consumers the commercial data
55collector serves.
56 A commercial data collector that collects data on more than 6 million but less than or
57equal to 7 million Massachusetts consumers shall pay a tax of 750 thousand dollars per month
58plus 30 cents per month on the number of Massachusetts consumers the commercial data
59collector serves.
60 Section 3. Tax Collection
61 A commercial data collector that collects data from Massachusetts consumers shall
62maintain detailed records of the number of Massachusetts consumers that it collects data from
63per month.
64 A commercial data collector shall file a monthly statement with the department of
65revenue that details the number of Massachusetts consumers that the collector collected data
66from during the previous month and states the amount owed by the collector to the
67commonwealth for the previous month.
68 A commercial data collector that fails to submit a monthly statement for the previous
69month within 10 days of the end of said month shall be assessed a monetary penalty amount of 5
70per cent of the collector’s assessment for said month. 5 of 9
71 A commercial data collector that fails to submit a monthly statement for the previous
72month within 20 days of the end of said month shall be assessed a monetary penalty amount of
7310 per cent of the collector’s assessment for said month.
74 (c) The department shall use each monthly statement to assess the amount owed by each
75commercial data collector under section 2 of this chapter.
76 (d) Upon written notice of assessment from the department, a commercial data collector
77shall submit payment to the commonwealth within 30 days of such notice.
78 (1) A commercial data collector that fails to submit payment within 30 days of written
79notice of assessment from the department shall be assessed a monetary penalty amount of 5 per
80cent of the collector’s assessment for said month.
81 (2) A commercial data collector that fails to submit payment within 60 days of written
82notice of assessment from the department shall be assessed a monetary penalty amount of 10 per
83cent of the collector’s assessment for said month.
84 (e) The department shall partner with any other state agency for the purposes of
85determining an accurate assessment of tax liability for commercial data collectors pursuant to
86section 2 of this chapter.
87 (f) The department shall promulgate any regulations necessary for the collection of tax
88liability pursuant to this chapter.
89 Section 4. Authority to Audit 6 of 9
90 (a) The Commonwealth shall have the right to conduct an audit or review of the records
91reasonably related to a commercial data collector’s computation of tax liability detailed within
92section 2 of this chapter within the previous 3 years.
93 (b) Within 30 days of a written request from the department, a commercial data collector
94shall provide the department with copies of all records related to the computation of tax liability
95pursuant to this chapter for Massachusetts consumers served by the commercial data collector.
96 (c) In the event of an alleged underpayment, the department shall provide the commercial
97data collector with a written statement indicating the basis for the alleged underpayment. The
98commercial data collector shall have 30 days from the receipt of a statement regarding an alleged
99underpayment to provide the department any written objection to the results of any assessment
100review or audit, including any substantiating documentation. Based on this exchange of
101information, the department shall make a final determination of the underpayment(s), if any,
102within 30 days of the commercial data collector’s objection and shall provide the collector with
103written notice of the determination.
104 (d) Any additional assessments due to the commonwealth as a result of the review or
105audit shall be paid to the department by the commercial data collector within 45 days from the
106date of written notification of the final decision. If the review or audit shows that amounts have
107been underpaid, then the commercial data collector shall pay the underpaid amount plus
108monetary fines equal to 10 per cent of the underpayment.
109 (e) A commercial data collector adversely affected by any final action, or failure to act, of
110the department that is inconsistent with this section may, within 30 days after such action or 7 of 9
111failure to act, commence an action in any court of competent jurisdiction within the
112Commonwealth. The court shall hear and decide such action on an expedited basis.
113 Section 5. Judicial Remedy
114 (a) In accordance with section 1 of chapter 12, the Attorney General is authorized to
115enforce this chapter. The Attorney General may, within 7 years, bring an action to recover any
116unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant entity,
117in any court of competent jurisdiction.
118 (b) Any community media center adversely impacted by the action, or failure to act, of
119any commercial data collector under this chapter, may, within 7 years, bring an action to recover
120any unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant
121entity, in any court of competent jurisdiction.
122 Section 6. Taxpayers
123 For the purposes of this chapter, the following shall apply to taxpayers:
124 There shall be a rebuttable presumption that a consumer whose information on record
125with or available to a commercial data collector indicates a Massachusetts home address, a
126Massachusetts mailing address, or an internet protocol address connected with a Massachusetts
127location is a Massachusetts consumer. The presumption may be rebutted by evidence that a
128consumer’s primary residence is outside of Massachusetts.
129 A Massachusetts consumer shall be counted only once in the calculation of the monthly
130tax imposed on a commercial data collector. 8 of 9
131 Business entities having common ownership as defined in section 1563(A) of the federal
132internal revenue code shall be treated as a single taxpayer for the purposes of meeting the
133definition of commercial data collector under this chapter. The entities constituting the single
134taxpayer are jointly and severally liable for any tax due.
135 The single member of a single member limited liability company shall be treated as a
136consumer under this chapter.
137 Section 7. Revenue Distribution
138 90 per cent of amounts collected pursuant to this chapter shall be credited to the Mental
139Health Resilience fund as established by section 2RRRRR of chapter 29.
140 10 per cent of amounts collected pursuant to this chapter shall be distributed to
141community media centers in the commonwealth and further allocated proportionally based upon
142population.
143 SECTION 2. Chapter 29 of the General Laws is hereby amended by inserting, after
144section 2QQQQQ, the following section:-
145 Section 2RRRRR. Mental Health Resilience Fund
146 There shall be a mental health resilience fund which shall be administered by the
147department of mental health with the objective of developing innovative strategies for improving
148the mental health of all residents within the commonwealth. Notwithstanding any general or
149special laws to the contrary, the following amounts shall be credited to the fund: 90 per cent of
150the amounts collected pursuant to chapter 64O, any appropriations, grants, gifts or other monies
151authorized by the general court or other parties and specifically designated to be credited to the 9 of 9
152fund, and any income derived from the investment of amounts credited to the fund. All amounts
153credited to the fund shall be used without further appropriation to accomplish the objective of the
154fund. Initiatives to accomplish the objective of the fund may include, but shall not be limited to:
155 Developing innovative strategies to provide recreational alternatives to social media
156usage for commonwealth residents, particularly youth;
157 Developing innovative strategies to increase the number of mental health providers in the
158commonwealth and achieving the goal of mental health provider availability for all
159commonwealth residents;
160 Mental health staff providing supports to summer camps and afterschool programs; and
161 Providing in-home therapy to children in crisis.
162 No expenditure from the fund shall cause the fund to be in deficiency at the close of a
163fiscal year. Monies deposited in the fund that are unexpended at the end of the fiscal year shall
164not revert to the General Fund and shall be available for expenditure in the subsequent year. The
165fund shall be exempt from the indirect and fringe benefits that would otherwise be assessed
166pursuant to this chapter.
167 SECTION 3. This act shall take effect upon its passage.