Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3065 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	Amount of Tax1.11Number of Minnesota Consumers
12	12	Zero1.12Fewer than or equal to 100,000
13	13	$0.10 per month per Minnesota consumer1.13Over 100,000 but not more than 500,000
14	14	$0.25 per month per Minnesota consumer1.14Over 500,000 but not more than 1,000,000
15	15	$0.50 per month per Minnesota consumer1.15Over 1,000,000
16	16	1.16 Subd. 3.Definitions.(a) For purposes of this section, the following terms have the
17	17	1.17meanings given.
18	18	1.18 (b) "Commissioner" means the commissioner of revenue.
19	19	1.19 (c) "Consumer" means an individual who establishes an account on an app or website
20	20	1.20owned by a social media platform business whose consumer data is collected by the social
21	21	1.21media platform business, regardless of whether the individual is charged for establishing
22	22	1.22the account.
23	23	1Section 1.
24	24	25-04995 as introduced03/17/25 REVISOR EAP/VJ
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 3065NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: REST)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading03/27/2025
31	31	Referred to Taxes 2.1 (d) "Consumer data" means any information that identifies, relates to, describes, is
32	32	2.2capable of being associated with, or could reasonably be linked with a consumer, whether
33	33	2.3directly submitted to the social media platform business by the consumer or derived from
34	34	2.4other sources.
35	35	2.5 (e) "Minnesota consumer" means a consumer who is a resident of Minnesota.
36	36	2.6 (f) "Resident" has the meaning given in section 290.01, subdivision 7.
37	37	2.7 (g) "Social media platform" has the meaning given in section 325M.31, paragraph (j).
38	38	2.8 (h) "Social media platform business" means a for-profit entity that engages, collects,
39	39	2.9maintains, uses, processes, sells, or shares consumer data in support of the entity's business
40	40	2.10activities and collects consumer data on more than 100,000 individual Minnesota consumers
41	41	2.11in a month within the calendar year.
42	42	2.12 Subd. 4.Taxpayers.(a) Until the contrary is established, it is presumed that a consumer
43	43	2.13whose information on record with or available to a social media platform business indicates
44	44	2.14a Minnesota home address, a Minnesota mailing address, or an internet protocol address
45	45	2.15connected with a Minnesota location is a Minnesota consumer for purposes of this section.
46	46	2.16The burden of proving that a consumer is not a Minnesota resident is on the social media
47	47	2.17platform business.
48	48	2.18 (b) A Minnesota consumer must be counted only once in the calculation of the monthly
49	49	2.19tax imposed on a social media platform business.
50	50	2.20 (c) Business entities that are part of a controlled group of corporations as defined in
51	51	2.21section 1563(a) of the Internal Revenue Code shall be treated as a single entity for purposes
52	52	2.22of meeting the definition of a social media platform business under this section.
53	53	2.23 (d) The single member of a single member limited liability company must be treated as
54	54	2.24a consumer under this section.
55	55	2.25 Subd. 5.Credit against tax paid to another jurisdiction.A social media platform
56	56	2.26business that has paid tax under this section may claim a credit against the tax paid with
57	57	2.27respect to a Minnesota consumer if another state imposes an excise tax identical to the tax
58	58	2.28imposed under this section with respect to the same consumer.
59	59	2.29 Subd. 6.Recordkeeping.A social media platform provider shall maintain records as
60	60	2.30required by the commissioner.
61	61	2.31 Subd. 7.Administration.Unless specifically provided otherwise, the audit, assessment,
62	62	2.32refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
63	63	2Section 1.
64	64	25-04995 as introduced03/17/25 REVISOR EAP/VJ 3.1provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
65	65	3.2297A apply to the tax imposed under this section.
66	66	3.3 Subd. 8.Returns; payment of tax.(a) A social media platform business must report
67	67	3.4the tax on a return prescribed by the commissioner and must remit the tax in a form and
68	68	3.5manner prescribed by the commissioner. The return and the tax must be filed and paid using
69	69	3.6the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
70	70	3.74, and chapter 297A.
71	71	3.8 (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
72	72	3.9the date of payment of the tax until the date the refund is paid or credited. For purposes of
73	73	3.10this subdivision, the date of payment is the due date of the return or the date of actual
74	74	3.11payment of the tax, whichever is later.
75	75	3.12 Subd. 9.Deposit of revenues.The commissioner must deposit the revenues, including
76	76	3.13penalties and interest, derived from the tax imposed by this section to the general fund.
77	77	3.14 Subd. 10.Personal debt.The tax imposed by this section, and interest and penalties
78	78	3.15imposed with respect to it, are a personal debt of the person required to file a return from
79	79	3.16the time that the liability for it arises, irrespective of when the time for payment of the
80	80	3.17liability occurs. The debt must, in the case of a fiduciary, be that of the person in the person's
81	81	3.18official or fiduciary capacity only, unless the person has voluntarily distributed the assets
82	82	3.19held in that capacity without reserving sufficient assets to pay the tax, interest, and penalties,
83	83	3.20in which event the person is personally liable for any deficiency.
84	84	3.21 EFFECTIVE DATE.This section is effective for consumer data collected after
85	85	3.22December 31, 2025.
86	86	3Section 1.
87	87	25-04995 as introduced03/17/25 REVISOR EAP/VJ