Says Companies Keep Getting Richer Selling Minnesotans’ Information
SAINT PAUL, Minn. – Senate Taxes Committee Chair Ann Rest (DFL-New Hope) said social media companies that profit from selling consumer data they collect — for free — from Minnesotans would be subject to a first-in-the-nation excise tax under a new bill heard in her committee Wednesday. She said the measure will raise hundreds of millions of dollars for the state and leave Minnesota taxpayers untouched.
Senator Rest said the estimated $334 million generated by the measure over the next four years will help lawmakers offset some of the spending cuts they face this year as they balance the budget. She said the economic uncertainty created by chaotic federal policies and the expected multi-billion budget cuts coming from the Trump Administration and Congress will make the funds generated by the tax even more important for the state.
“As the first state to do this, Minnesota would become a model for the rest of the country,” said Senator Rest. “The substantial money generated for our state will come from people like Elon Musk and Mark Zuckerberg who have accumulated vast wealth by taking data from Minnesotans and selling it. No Minnesotan will be taxed under this plan and every penny raised will help us balance our state’s budget.”
Under the bill, social media companies with fewer than 100,000 monthly Minnesota consumers would pay no tax. Companies with between 500,000 and 1 million Minnesota consumers, the tax per month would be $40,000 plus 25 cents times the number of consumers over 500,000. Companies with more than 1 million Minnesota consumers would be taxed $165,000 per month plus 50 cents per consumer over 1 million.
The Minnesota Department of Revenue estimates that the tax, which would begin in 2026, would apply to 14 social media companies. It would generate nearly $46 million in the first fiscal year, and just under $100 million annually after that.
The Senate measure was laid over for possible inclusion in the final tax bill. The Minnesota House heard the companion bill on Wednesday as well.
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