State taxing social media

Minnesota is proposing a tax for social media companies with SF 3197 which would impose a tax based on the number of customers/users. It’s a complex formula that the revenue estimators say will hit 15 or fewer social media companies.

Let’s dive into it. A social media company with fewer than 100,000 customers will have no tax consequences. A social media company with 500,000 to 1,000,000 consumers will see a tax of $40,000 plus 25 cents times the number of consumers over 500,000. A social media company with more than a million consumers will have a tax rate of $165,000 plus 50 cents times the number of consumers over 1 million.

Route Fifty. | Minnesota Senate Democrats propose new tax on social media companies