Minnesota 2025-2026 Regular Session

Minnesota House Bill HF3117 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; establishing an excise tax on certain social media platform
3	3	1.3 businesses; proposing coding for new law in Minnesota Statutes, chapter 295.
4	4	1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
5	5	1.5 Section 1. [295.90] SOCIAL MEDIA GROSS RECEIPTS TAX.
6	6	1.6 Subdivision 1.Tax imposed.A tax is imposed on the collection of consumer data by a
7	7	1.7social media platform business as provided under this section.
8	8	1.8 Subd. 2.Rate of tax.The tax is imposed on social media businesses based on the number
9	9	1.9of Minnesota users from whom a social media platform business collects data within a
10	10	1.10month:
11	11	Tax1.11Minnesota consumers
12	12	Zero1.12Fewer than or equal to 100,000
13	13	$0.10 per month on the number of Minnesota
14	14	1.14 consumers over 100,000 but not more than
15	15	1.15 500,000;
16	16	1.13Over 100,000 but not more than 500,000
17	17	$40,000 plus $0.25 per month on the number
18	18	1.17 of Minnesota consumers over 500,000 but
19	19	1.18 not more than 1,000,000; and
20	20	1.16Over 500,000 but not more than 1,000,000
21	21	$165,000 plus $0.50 per month on the number
22	22	1.20 of Minnesota consumers over 1,000,000.
23	23	1.19Over 1,000,000
24	24	1.21 Subd. 3.Definitions.(a) For purposes of this section, the following terms have the
25	25	1.22meanings given.
26	26	1.23 (b) "Commissioner" means the commissioner of revenue.
27	27	1Section 1.
28	28	REVISOR EAP/CH 25-0532603/28/25
29	29	State of Minnesota
30	30	This Document can be made available
31	31	in alternative formats upon request
32	32	HOUSE OF REPRESENTATIVES
33	33	H. F. No. 3117
34	34	NINETY-FOURTH SESSION
35	35	Authored by Gomez and Hanson, J.,04/07/2025
36	36	The bill was read for the first time and referred to the Committee on Taxes 2.1 (c) "Consumer" means an individual who establishes an account on an app or website
37	37	2.2owned by a social media platform business whose consumer data is collected by the social
38	38	2.3media platform business, regardless of whether the individual is charged for establishing
39	39	2.4the account.
40	40	2.5 (d) "Consumer data" means any information that identifies, relates to, describes, is
41	41	2.6capable of being associated with, or could reasonably be linked with a consumer, whether
42	42	2.7directly submitted to the social media platform business by the consumer or derived from
43	43	2.8other sources.
44	44	2.9 (e) "Minnesota consumer" means a consumer who is a resident of Minnesota.
45	45	2.10 (f) "Resident" has the meaning given in section 290.01, subdivision 7.
46	46	2.11 (g) "Social media platform" has the meaning given in section 325M.31, paragraph (j).
47	47	2.12 (h) "Social media platform business" means a for-profit entity that engages, collects,
48	48	2.13maintains, uses, processes, sells, or shares consumer data in support of the entity's business
49	49	2.14activities and collects consumer data on more than 100,000 individual Minnesota consumers
50	50	2.15in a month within the calendar year.
51	51	2.16 Subd. 4.Taxpayers.(a) Until the contrary is established, it is presumed that a consumer
52	52	2.17whose information on record with or available to a social media platform business indicates
53	53	2.18a Minnesota home address, a Minnesota mailing address, or an internet protocol address
54	54	2.19connected with a Minnesota location is a Minnesota consumer for purposes of this section.
55	55	2.20The burden of proving that a consumer is not a Minnesota resident is on the social media
56	56	2.21platform business.
57	57	2.22 (b) A Minnesota consumer must be counted only once in the calculation of the monthly
58	58	2.23tax imposed on a social media platform business.
59	59	2.24 (c) Business entities that are part of a controlled group of corporations as defined in
60	60	2.25section 1563(a) of the Internal Revenue Code shall be treated as a single entity for purposes
61	61	2.26of meeting the definition of a social media platform business under this section.
62	62	2.27 (d) The single member of a single member limited liability company must be treated as
63	63	2.28a consumer under this section.
64	64	2.29 Subd. 5.Credit against tax paid to another jurisdiction.A social media platform
65	65	2.30business that has paid tax under this section may claim a credit against the tax paid with
66	66	2.31respect to a Minnesota consumer if another state imposes an excise tax identical to the tax
67	67	2.32imposed under this section with respect to the same consumer.
68	68	2Section 1.
69	69	REVISOR EAP/CH 25-0532603/28/25 3.1 Subd. 6.Recordkeeping.A social media platform provider shall maintain records as
70	70	3.2required by the commissioner.
71	71	3.3 Subd. 7.Administration.Unless specifically provided otherwise, the audit, assessment,
72	72	3.4refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
73	73	3.5provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
74	74	3.6297A apply to the tax imposed under this section.
75	75	3.7 Subd. 8.Returns; payment of tax.(a) A social media platform business must report
76	76	3.8the tax on a return prescribed by the commissioner and must remit the tax in a form and
77	77	3.9manner prescribed by the commissioner. The return and the tax must be filed and paid using
78	78	3.10the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
79	79	3.114, and chapter 297A.
80	80	3.12 (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
81	81	3.13the date of payment of the tax until the date the refund is paid or credited. For purposes of
82	82	3.14this subdivision, the date of payment is the due date of the return or the date of actual
83	83	3.15payment of the tax, whichever is later.
84	84	3.16 Subd. 9.Deposit of revenues.The commissioner must deposit the revenues, including
85	85	3.17penalties and interest, derived from the tax imposed by this section to the general fund.
86	86	3.18 Subd. 10.Personal debt.The tax imposed by this section, and interest and penalties
87	87	3.19imposed with respect to it, are a personal debt of the person required to file a return from
88	88	3.20the time that the liability for it arises, irrespective of when the time for payment of the
89	89	3.21liability occurs. The debt must, in the case of a fiduciary, be that of the person in the person's
90	90	3.22official or fiduciary capacity only, unless the person has voluntarily distributed the assets
91	91	3.23held in that capacity without reserving sufficient assets to pay the tax, interest, and penalties,
92	92	3.24in which event the person is personally liable for any deficiency.
93	93	3.25 EFFECTIVE DATE.This section is effective for consumer data collected after
94	94	3.26December 31, 2025.
95	95	3Section 1.
96	96	REVISOR EAP/CH 25-0532603/28/25