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