New Digital Excise Tax Bill S.4959 Introduced in New York State

As we reported last week, the Governor’s budget does not include any form of advertising tax or digital data tax.  New York and other states are looking closely at the digital data tax approved last week in Maryland.  There are two issues driving this process:  1) the “belief” that the states can obtain significant revenue and 2) a desire to hold large social media platforms accountable. 

Several entities have filed litigation to stop the digital tax that was approved in Maryland.  Moreover, the Maryland legislature is in the process of exempting taxes on digital data obtained by broadcast companies.

In New York, there are several bills that will be debated during this session.  The most recent, S.4959, is an excise tax on the sale of personal data obtained from citizens in New York.  Under the proposed bill, entities collecting and selling data from more than one million New Yorkers per month would be subject to a graduated tax. 

 “The data collection tax would be applied on a graduated rate schedule beginning at 5 cents per individual per month for commercial data collectors collecting data on over a million New Yorkers in a month. The rate gradually increases, with the highest rate set at 50 cents per individual per month paid on the number of individual New Yorkers over 10 million on whom data is collected in a month.”

Again this is not part of the Governor’s budget.  Nonetheless, we will have to address this issue before the session ends in June. The bill was introduced by NY State Senator Liz Krueger, Chair of the powerful Senate Finance Committee.  

For more details on the legislation click HERE.  

To see a text of the bill click HERE

 

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