STATE OF NEW YORK ________________________________________________________________________ 4489 2025-2026 Regular Sessions IN SENATE February 5, 2025 ___________ Introduced by Sens. KRUEGER, HOYLMAN-SIGAL -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to creating an excise tax on the collection of consumer data by commercial data collectors The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 186-h to 2 read as follows: 3 § 186-h. Excise tax on the collection of consumer data by commercial 4 data collectors. 1. Imposition of tax. There is hereby imposed a monthly 5 excise tax on the collection of the consumer data of individual New York 6 consumers by commercial data collectors. The tax shall apply regardless 7 of the format, electronic or otherwise, in which the consumer data is 8 collected by the commercial data collector. 9 2. Definitions. As used in this section: 10 (a) The words "commercial data collector" mean a for-profit entity 11 that: 12 (i) collects, maintains, uses, processes, sells or shares consumer 13 data in support of its business activities; and 14 (ii) collects consumer data, other than consumer contact information, 15 on more than one million individual New York consumers in a month within 16 the calendar year. 17 (b) The word "consumer" means an individual who purchases goods or 18 services from a commercial data collector or uses the services of a 19 commercial data collector, whether charged for those services or not. 20 (c) The words "consumer contact information" mean (i) a consumer's 21 email address, telephone number, telefax number, home address, mailing 22 address; and (ii) credit card information necessary to engage in a sales 23 transaction. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04012-02-5
S. 4489 2 1 (d) The words "consumer data" mean any information that identifies, 2 relates to, describes, is capable of being associated with, or could 3 reasonably be linked with a consumer, whether directly submitted to the 4 commercial data collector by the consumer or derived from other sources. 5 (e) The words "New York consumer" mean a consumer whose primary resi- 6 dence, as defined in article twenty-two of this chapter, is in New York 7 state. 8 3. Rate of tax. The tax is imposed on commercial data collectors at 9 the following rates based on the number of New York consumers a commer- 10 cial data collector collects data on within the month. 11 New York consumers tax 12 Less than or equal to one million 0 13 over one million to two million five cents per month on the number 14 of New York consumers over 15 one million but not more 16 than two million 17 over two million to three million fifty thousand dollars per month plus 18 ten cents per month on the number 19 of New York consumers over 20 two million but not more than 21 three million 22 over three million to four million one hundred fifty thousand dollars 23 per month plus fifteen cents per 24 month on the number of New York 25 consumers over three million 26 but not more than four million 27 over four million to five million three hundred thousand dollars per 28 month plus twenty cents per month 29 on the number of New York 30 consumers over four million but 31 not more than five million 32 over five million to six million five hundred thousand dollars per 33 month plus twenty-five cents per 34 month on the number of 35 New York consumers over five 36 million but not more than 37 six million 38 over six million to seven million seven hundred fifty thousand 39 dollars per month plus thirty 40 cents per month on the number 41 of New York consumers over six 42 million but not more 43 than seven million 44 over seven million to eight million one million, fifty thousand dollars 45 per month plus thirty-five cents per 46 month on the number of New York 47 consumers over seven 48 million but not more than eight 49 million 50 over eight million to nine million one million, four hundred thousand 51 dollars per month plus forty cents 52 per month on the number of New 53 York consumers over eight 54 million but not more than nine 55 million 56 over nine million to ten million one million, eight hundred thousand
S. 4489 3 1 dollars per month plus forty-five 2 cents per month on the number 3 of New York consumers over 4 nine million but not more than ten 5 million 6 over ten million two million, two hundred fifty 7 thousand dollars per month plus 8 fifty cents per month on the number 9 of New York consumers over 10 ten million. 11 4. Taxpayers. (a) There shall be a rebuttable presumption that a 12 consumer whose information on record with or available to a commercial 13 data collector indicates a New York home address, a New York mailing 14 address, or an internet protocol address connected with a New York 15 location is a New York consumer for purposes of this section. The 16 presumption may be rebutted by evidence that a consumer's primary resi- 17 dence, as defined in article twenty-two of this chapter, is outside New 18 York. 19 (b) A New York consumer shall be counted only once in the calculation 20 by a consumer data collector of the monthly excise tax imposed on a 21 commercial data collector. 22 (c) Business entities having common ownership as defined in section 23 1563(a) of the internal revenue code shall be treated as a single 24 taxpayer for purposes of meeting the definition of commercial data 25 collector under this section. The entities constituting the single 26 taxpayer are jointly and severally liable for any tax due. 27 (d) The single member of a single member limited liability company 28 shall be treated as a consumer under this section. 29 5. Alternative methods for calculating tax liability. A commercial 30 data collector and the department may agree on a methodology for deter- 31 mining the number of New York consumers for the purpose of calculating 32 the tax. 33 6. Credit against tax paid to another jurisdiction. A commercial data 34 collector that has paid tax under this section may claim a credit 35 against the tax paid with respect to a New York consumer when another 36 state imposes an excise tax identical to the tax imposed under this 37 section with respect to the same consumer. 38 7. Recordkeeping. A commercial data collector shall maintain records 39 as required by the commissioner. 40 8. Returns. (a) A commercial data collector shall file a monthly 41 return as prescribed by the commissioner. 42 (b) A commercial data collector that pays the tax imposed under this 43 section in a given month must file a return in subsequent months until 44 it reports no tax liability for twelve consecutive months. 45 9. Administrative procedures. The administrative procedures set forth 46 in article twenty-seven of this chapter shall apply unless specific 47 provisions to the contrary are set forth in this section. 48 10. The department of taxation and finance may prescribe such rules 49 and regulations as may be necessary to carry out this section. 50 § 2. This act shall take effect immediately and shall apply to all tax 51 years commencing on or after the first day of the first month that 52 begins more than six months after the law takes effect.