Social media businesses would pay a tax on Nebraska consumer data

Certain social media platform businesses would pay a monthly excise tax based on the number of Nebraska consumers whose data they collect. The tax would cover for-profit entities that operate social media platforms and collect, use, process, sell, or share consumer data for business activities. Search providers, internet providers, email services, and several other excluded services would not be covered. Businesses with 50,000 or fewer Nebraska consumers would owe no tax. The monthly tax would be $0.10 for each consumer over 50,000 up to 250,000; $40,000 plus $0.25 for each consumer over 250,000 up to 500,000; and $165,000 plus $0.50 for each consumer over 500,000. A consumer would generally be presumed to be a Nebraska consumer when the business has a Nebraska home address, mailing address, or Nebraska-linked internet protocol address. The business would have to prove otherwise. Each Nebraska consumer could be counted only once per platform, and a credit could apply when another state imposes an identical tax on the same consumer. The tax would apply beginning January 1, 2027, based on the number of Nebraska consumers whose data a business collects during each month.

The state would place the tax receipts in a Juvenile Mental Health Support Fund for juvenile mental health programming and facilities. The Department of Health and Human Services would administer the fund, which would receive money transferred from the proposed social media data tax. The fund could be used for programming and facilities associated with juvenile mental health services. The state investment officer would invest money in the fund that is available for investment under state investment laws. The fund would receive money when the proposed tax is collected and transferred under the bill.