Creates an excise tax on the collection of consumer data by commercial data collectors.
If implemented, A01434 would necessitate changes to current state tax laws, marking the first time an excise tax is levied specifically on consumer data collection practices. Commercial data collectors would be required to maintain detailed records of the consumer data they collect, and this could lead to increased operational expenses for these entities. Additionally, the collection of taxes may potentially deter excessive data collection practices, promoting a more ethical approach to consumer data utilization in New York.
Assembly Bill A01434 proposes the imposition of an excise tax on commercial data collectors that collect consumer data from more than one million New York consumers within a month. The excise tax is structured progressively based on the number of consumers whose data is harvested, beginning with smaller fees for less populated data collections and escalating with higher numbers of consumers. The purpose of this bill is to generate revenue while simultaneously enhancing consumer privacy by holding data collectors accountable for their data practices.
The bill could spark significant debate regarding consumer rights versus business operations. Proponents argue that it offers a much-needed framework for taxing entities that profit from consumer data while protecting individual privacy rights. Critics, however, might contend that the tax could stifle innovation or lead to increased costs for consumers as businesses pass on the tax burden. As such, the bill raises important questions about the balance between consumer protection and the commercial viability of data-driven businesses.