Minnesota House Bill HF3117

Minnesota 2025-2026 Regular Session

• Introduced: 4/7/25
• Refer: 4/7/25

Caption

Excise tax on certain social media platform businesses established.

Summary

HF3117 would create a new Minnesota excise tax on certain social media platform businesses based on the amount of Minnesota consumer data they collect each month. The tax is triggered only for for-profit entities that collect consumer data on more than 100,000 Minnesota consumers in a month, and the amount owed increases as the number of Minnesota users rises. The bill defines consumer data broadly and presumes a user is a Minnesota consumer if records show a Minnesota address or Minnesota-linked IP address, unless the business proves otherwise. The bill sets a tiered monthly tax structure: no tax for businesses at or below 100,000 Minnesota consumers, then increasing fixed and per-consumer amounts for larger user bases. It also provides a credit if another state imposes an identical tax on the same consumer, requires recordkeeping and returns under existing Minnesota tax administration rules, and directs all revenue, penalties, and interest to the general fund. The tax would apply to consumer data collected after December 31, 2025.

Impact

If enacted, the bill would add a new section to Minnesota Statutes chapter 295 and expand the state tax code to reach social media platform businesses that collect data from large numbers of Minnesota residents. It would impose new compliance, reporting, and recordkeeping obligations on affected companies, while giving the Department of Revenue authority to administer, audit, assess, and collect the tax under existing tax procedures. The measure would also create a new general-fund revenue source tied to digital advertising/data collection activity rather than traditional sales or income tax bases.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes, the available context suggests the bill is presented as a revenue and regulatory measure rather than one with documented public debate in the record provided. The caption and structure indicate a policy approach aimed at taxing large social media firms that monetize user data, which typically appeals to supporters concerned about tech industry taxation and state revenue. However, no committee discussion or vote history is available here to show formal support or opposition.

Contention

The main points of contention likely center on whether Minnesota should tax social media companies based on user data collection, and whether the tax is workable and fairly targeted. Potential critics may object to the broad definition of consumer data, the presumption that users with Minnesota-linked addresses or IP addresses are Minnesota consumers, and the administrative burden of proving otherwise. Supporters would likely emphasize that the tax applies only to large platforms with substantial Minnesota user bases and is designed to capture revenue from companies that profit from consumer data.