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