Social media platform businesses excise tax establishment

SF 3425 establishes a monthly excise tax on social media platform businesses that collect consumer data from Minnesota residents. It directly affects large social media companies (defined as those collecting data from over 100,000 Minnesota residents monthly), imposing tiered rates based on user counts: $0 for under 100,000 users, $0.10 per user above 100,000 up to 500,000, and higher fixed/variable rates for larger user bases. The tax applies specifically to data collection activities, with Minnesota residents counted based on address or IP data, and companies must report payments to the state revenue commissioner. Revenues from this tax will fund Minnesota's general fund.