The Minnesota State Legislature has introduced Senate Bill 3065, a proposed measure aimed at establishing an excise tax on social media platforms that collect consumer data. Introduced on March 27, 2025, the bill seeks to impose a tax based on the number of Minnesota users from whom these platforms gather data, marking a significant step in regulating the digital economy and addressing privacy concerns.

Under the proposed legislation, social media businesses would face a tiered tax structure. Platforms with fewer than 100,000 Minnesota users would incur a nominal fee of $0.10 per user per month, while those with user counts exceeding 1 million would be taxed at $0.50 per user. This approach aims to generate revenue while encouraging social media companies to be more transparent about data collection practices.

The bill has sparked discussions among lawmakers and stakeholders, with proponents arguing that it could provide much-needed funding for state initiatives, particularly in education and technology infrastructure. Critics, however, express concerns that such a tax could disproportionately affect smaller platforms and stifle innovation in the tech sector. The debate highlights the ongoing tension between consumer privacy rights and the economic interests of digital businesses.

As the bill moves through the legislative process, its implications could extend beyond state revenue. Experts suggest that if passed, it may set a precedent for other states considering similar measures, potentially reshaping the landscape of digital advertising and data collection practices nationwide.

The introduction of Senate Bill 3065 reflects a growing recognition of the need for regulatory frameworks that address the complexities of the digital age. As lawmakers continue to deliberate, the outcome of this bill could have lasting effects on both consumers and the tech industry in Minnesota and beyond.