Creates an excise tax on the collection of consumer data by commercial data collectors.
Summary
Bill S04489 proposes the establishment of an excise tax on the collection of consumer data by commercial data collectors in New York. The tax is designed to be imposed monthly and varies based on the number of New York consumers whose data is collected. The bill defines commercial data collectors as for-profit entities that collect data on more than one million consumers in a month, and it outlines specific rates for the tax based on the number of consumers involved. Additionally, the bill includes provisions for recordkeeping, filing returns, and administrative procedures to ensure compliance.
Impact
If enacted, this bill would amend New York's tax law to introduce a new revenue stream through the taxation of consumer data collection, potentially affecting numerous commercial data collectors operating in the state. The bill aims to regulate the data collection industry and may lead to increased operational costs for companies that rely on consumer data. Furthermore, it may encourage companies to reconsider their data collection practices in light of the new tax obligations.
Sentiment
The sentiment surrounding Bill S04489 appears to be mixed, with proponents arguing that it will help regulate the data collection industry and generate revenue for the state, while opponents may express concerns about the potential burden on businesses and the implications for consumer privacy. However, specific voting history and committee discussions are not available to provide a clearer picture of the overall sentiment.
Contention
Notable points of contention include the potential economic impact on commercial data collectors, particularly smaller businesses that may struggle with the tax burden. Additionally, there may be concerns regarding how the tax could affect consumer privacy and data management practices. Stakeholders in the tech and data industries may hold opposing views on the necessity and fairness of the tax.
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