SF 3197

as introduced - 94th Legislature (2025 - 2026) Posted on 04/03/2025 08:59am

A bill for an act
relating to taxation; establishing an excise tax on certain social media platform
businesses; proposing coding for new law in Minnesota Statutes, chapter 295.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [295.90] SOCIAL MEDIA GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin A tax is imposed on the collection of consumer data by a
social media platform business as provided under this section.
new text end

new text begin Subd. 2. new text end

new text begin Rate of tax. new text end

new text begin The tax is imposed on social media businesses based on the number
of Minnesota users from whom a social media platform business collects data within a
month:
new text end

new text begin Minnesota consumers new text end	new text begin Tax new text end
new text begin Fewer than or equal to 100,000 new text end	new text begin Zero new text end
new text begin Over 100,000 but not more than 500,000 new text end	new text begin $0.10 per month on the number of Minnesota consumers over 100,000 but not more than 500,000; new text end
new text begin Over 500,000 but not more than 1,000,000 new text end	new text begin $40,000 plus $0.25 per month on the number of Minnesota consumers over 500,000 but not more than 1,000,000; and new text end
new text begin Over 1,000,000 new text end	new text begin $165,000 plus $0.50 per month on the number of Minnesota consumers over 1,000,000. new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Consumer" means an individual who establishes an account on an app or website
owned by a social media platform business whose consumer data is collected by the social
media platform business, regardless of whether the individual is charged for establishing
the account.
new text end

new text begin (d) "Consumer data" means any information that identifies, relates to, describes, is
capable of being associated with, or could reasonably be linked with a consumer, whether
directly submitted to the social media platform business by the consumer or derived from
other sources.
new text end

new text begin (e) "Minnesota consumer" means a consumer who is a resident of Minnesota.
new text end

new text begin (f) "Resident" has the meaning given in section 290.01, subdivision 7.
new text end

new text begin (g) "Social media platform" has the meaning given in section 325M.31, paragraph (j).
new text end

new text begin (h) "Social media platform business" means a for-profit entity that engages, collects,
maintains, uses, processes, sells, or shares consumer data in support of the entity's business
activities and collects consumer data on more than 100,000 individual Minnesota consumers
in a month within the calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Taxpayers. new text end

new text begin (a) Until the contrary is established, it is presumed that a consumer
whose information on record with or available to a social media platform business indicates
a Minnesota home address, a Minnesota mailing address, or an internet protocol address
connected with a Minnesota location is a Minnesota consumer for purposes of this section.
The burden of proving that a consumer is not a Minnesota resident is on the social media
platform business.
new text end

new text begin (b) A Minnesota consumer must be counted only once in the calculation of the monthly
tax imposed on a social media platform business.
new text end

new text begin (c) Business entities that are part of a controlled group of corporations as defined in
section 1563(a) of the Internal Revenue Code shall be treated as a single entity for purposes
of meeting the definition of a social media platform business under this section.
new text end

new text begin (d) The single member of a single member limited liability company must be treated as
a consumer under this section.
new text end

new text begin Subd. 5. new text end

new text begin Credit against tax paid to another jurisdiction. new text end

new text begin A social media platform
business that has paid tax under this section may claim a credit against the tax paid with
respect to a Minnesota consumer if another state imposes an excise tax identical to the tax
imposed under this section with respect to the same consumer.
new text end

new text begin Subd. 6. new text end

new text begin Recordkeeping. new text end

new text begin A social media platform provider shall maintain records as
required by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
297A apply to the tax imposed under this section.
new text end

new text begin Subd. 8. new text end

new text begin Returns; payment of tax. new text end

new text begin (a) A social media platform business must report
the tax on a return prescribed by the commissioner and must remit the tax in a form and
manner prescribed by the commissioner. The return and the tax must be filed and paid using
the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
4, and chapter 297A.
new text end

new text begin (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
the date of payment of the tax until the date the refund is paid or credited. For purposes of
this subdivision, the date of payment is the due date of the return or the date of actual
payment of the tax, whichever is later.
new text end

new text begin Subd. 9. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner must deposit the revenues, including
penalties and interest, derived from the tax imposed by this section to the general fund.
new text end

new text begin Subd. 10. new text end

new text begin Personal debt. new text end

new text begin The tax imposed by this section, and interest and penalties
imposed with respect to it, are a personal debt of the person required to file a return from
the time that the liability for it arises, irrespective of when the time for payment of the
liability occurs. The debt must, in the case of a fiduciary, be that of the person in the person's
official or fiduciary capacity only, unless the person has voluntarily distributed the assets
held in that capacity without reserving sufficient assets to pay the tax, interest, and penalties,
in which event the person is personally liable for any deficiency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for consumer data collected after
December 31, 2025.
new text end