NY State Senate Bill 2021-S4959

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
Feb 19, 2021	committee discharged and committed to budget and revenue referred to investigations and government operations

co-Sponsors

2021-S4959 (ACTIVE) - Details

See Assembly Version of this Bill:: A6199
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §186-h, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S2012, A3959

2021-S4959 (ACTIVE) - Summary

Creates an excise tax on the collection of consumer data by commercial data collectors.

2021-S4959 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4959

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the tax law, in relation to creating an excise tax on
the collection of consumer data by commercial data collectors

 
PURPOSE OR GENERAL IDEA OF BILL:

To raise revenue to fund state services by ,imposing a tax on the
collection of New Yorkers' consumer data by businesses for commercial
purposes.

 
SUMMARY OF PROVISIONS:

Amends Tax Law by adding new Section 186-h

Section 1. The bill imposes an excise tax on the collection of New York-
ers' consumer data based on the number of New York individuals on whom a
commercial data collector collects data within a month. The tax applies

regardless of the format in which the data is collected.  The tax is
imposed on for-profit businesses that collect data, excluding basic
contact information, on over 1 million New York individuals in a given
month.

There is a graduated rate schedule that begins 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 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.

Other provisions impose filing and recordkeeping requirements, provide
that a taxpayer and the Tax Department may agree on a methodology for
determining the tax that simplifies compliance, and adopt certain admin-
istrative provisions that apply to existing taxes under Article 9 of the
tax law.

Section 2. The bill would be effective immediately with the imposition
of the tax beginning on the first day of the month that begins more than
six months after the law becomes effective.

 
JUSTIFICATION:

In the current marketplace, data about individual consumer interests and
preferences are an extraordinarily valuable asset. Some of the largest,
most successful data collectors are social media companies that amass
huge amounts of data on individual New Yorkers that is analyzed using
sophisticated technology to enhance the value of the advertising oppor-
tunities they offer. Much of this data comes from the consumers them-
selves, often without any awareness on the part of the individual whose
data is being collected.  The description above is only one manner in
which data about New Yorkers is collected and used. Big box retailers,
internet retail platforms, credit card companies, multi-media enter-
tainment providers and most other large companies maintain databases
that they analyze for a range of purposes, from selling advertising to
evaluating the effectiveness of their websites.

Only a small fraction of all businesses will collect data on over a
million New York consumers monthly, the threshold for being subject to
the tax.  The tax paid per consumer is extremely modest. The tax paid by
a business collecting data on 2 million New York consumers would be 30
cents a year per consumer. The tax paid by a business collecting data on
10 million New York consumers would be $2.70 per consumer per year.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Increased revenues to the State in an amount to be determined

 
EFFECTIVE DATE:
Immediately and shall apply to all tax years commencing on or after the
first day of the first month that begins more than six months after the
law takes effect.

2021-S4959 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4959
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 19, 2021
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to creating an  excise  tax  on
   the collection of consumer data by commercial data collectors

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a  new  section  186-h  to
 read as follows:
   §  186-H.  EXCISE TAX ON THE COLLECTION OF CONSUMER DATA BY COMMERCIAL
 DATA COLLECTORS. 1. IMPOSITION OF TAX. THERE IS HEREBY IMPOSED A MONTHLY
 EXCISE TAX ON THE COLLECTION OF THE CONSUMER DATA OF INDIVIDUAL NEW YORK
 CONSUMERS BY COMMERCIAL DATA COLLECTORS. THE TAX SHALL APPLY  REGARDLESS
 OF  THE  FORMAT,  ELECTRONIC OR OTHERWISE, IN WHICH THE CONSUMER DATA IS
 COLLECTED BY THE COMMERCIAL DATA COLLECTOR.
   2. DEFINITIONS. AS USED IN THIS SECTION:
   (A) THE WORDS "COMMERCIAL DATA COLLECTOR"  MEAN  A  FOR-PROFIT  ENTITY
 THAT:
   (I)  COLLECTS,  MAINTAINS,  USES,  PROCESSES, SELLS OR SHARES CONSUMER
 DATA IN SUPPORT OF ITS BUSINESS ACTIVITIES; AND
   (II) COLLECTS CONSUMER DATA, OTHER THAN CONSUMER CONTACT  INFORMATION,
 ON MORE THAN ONE MILLION INDIVIDUAL NEW YORK CONSUMERS IN A MONTH WITHIN
 THE CALENDAR YEAR.
   (B)  THE  WORD  "CONSUMER"  MEANS AN INDIVIDUAL WHO PURCHASES GOODS OR
 SERVICES FROM A COMMERCIAL DATA COLLECTOR OR  USES  THE  SERVICES  OF  A
 COMMERCIAL DATA COLLECTOR, WHETHER CHARGED FOR THOSE SERVICES OR NOT.
   (C)  THE  WORDS  "CONSUMER  CONTACT INFORMATION" MEAN (I) A CONSUMER'S
 EMAIL ADDRESS, TELEPHONE NUMBER, TELEFAX NUMBER, HOME  ADDRESS,  MAILING
 ADDRESS; AND (II) CREDIT CARD INFORMATION NECESSARY TO ENGAGE IN A SALES
 TRANSACTION.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09016-06-1

 S. 4959                             2
 
   (D)  THE  WORDS  "CONSUMER DATA" MEAN ANY INFORMATION THAT IDENTIFIES,
 RELATES TO, DESCRIBES, IS CAPABLE OF BEING  ASSOCIATED  WITH,  OR  COULD
 REASONABLY  BE LINKED WITH A CONSUMER, WHETHER DIRECTLY SUBMITTED TO THE
 COMMERCIAL DATA COLLECTOR BY THE CONSUMER OR DERIVED FROM OTHER SOURCES.
   (E)  THE WORDS "NEW YORK CONSUMER" MEAN A CONSUMER WHOSE PRIMARY RESI-
 DENCE, AS DEFINED IN ARTICLE TWENTY-TWO OF THIS CHAPTER, IS IN NEW  YORK
 STATE.
   3.  RATE  OF  TAX. THE TAX IS IMPOSED ON COMMERCIAL DATA COLLECTORS AT
 THE FOLLOWING RATES BASED ON THE NUMBER OF NEW YORK CONSUMERS A  COMMER-
 CIAL DATA COLLECTOR COLLECTS DATA ON WITHIN THE MONTH.
 NEW YORK CONSUMERS                  TAX
 LESS THAN OR EQUAL TO ONE MILLION   0
 OVER ONE MILLION TO TWO MILLION     FIVE CENTS PER MONTH ON THE NUMBER
                                     OF NEW YORK CONSUMERS OVER
                                     ONE MILLION BUT NOT MORE
                                     THAN TWO MILLION
 OVER TWO MILLION TO THREE MILLION   FIFTY THOUSAND DOLLARS PER MONTH PLUS
                                     TEN CENTS PER MONTH ON THE NUMBER
                                     OF NEW YORK CONSUMERS OVER
                                     TWO MILLION BUT NOT MORE THAN
                                     THREE MILLION
 OVER THREE MILLION TO FOUR MILLION  ONE HUNDRED FIFTY THOUSAND DOLLARS
                                     PER MONTH PLUS FIFTEEN CENTS PER
                                     MONTH ON THE NUMBER OF NEW YORK
                                     CONSUMERS OVER THREE MILLION
                                     BUT NOT MORE THAN FOUR MILLION
 OVER FOUR MILLION TO FIVE MILLION   THREE HUNDRED THOUSAND DOLLARS PER
                                     MONTH PLUS TWENTY CENTS PER MONTH
                                     ON THE NUMBER OF NEW YORK
                                     CONSUMERS OVER FOUR MILLION BUT
                                     NOT MORE THAN FIVE MILLION
 OVER FIVE MILLION TO SIX MILLION    FIVE HUNDRED THOUSAND DOLLARS PER
                                     MONTH PLUS TWENTY-FIVE CENTS PER
                                     MONTH ON THE NUMBER OF
                                     NEW YORK CONSUMERS OVER FIVE
                                     MILLION BUT NOT MORE THAN
                                     SIX MILLION
 OVER SIX MILLION TO SEVEN MILLION   SEVEN HUNDRED FIFTY THOUSAND DOLLARS
                                     PLUS THIRTY CENTS PER MONTH ON THE
                                     NUMBER OF NEW YORK CONSUMERS
                                     OVER SIX MILLION BUT NOT MORE
                                     THAN SEVEN MILLION
 OVER SEVEN MILLION TO EIGHT MILLION ONE MILLION, FIFTY THOUSAND DOLLARS
                                     PER MONTH PLUS THIRTY-FIVE CENTS PER
                                     MONTH ON THE NUMBER OF NEW YORK
                                     CONSUMERS OVER SEVEN
                                     MILLION BUT NOT MORE THAN EIGHT
                                     MILLION
 OVER EIGHT MILLION TO NINE MILLION  ONE MILLION, FOUR HUNDRED THOUSAND
                                     DOLLARS PER MONTH PLUS FORTY CENTS
                                     PER MONTH ON THE NUMBER OF NEW
                                     YORK CONSUMERS OVER EIGHT
                                     MILLION BUT NOT MORE THAN NINE
                                     MILLION
 OVER NINE MILLION TO TEN MILLION    ONE MILLION, EIGHT HUNDRED THOUSAND
                                     DOLLARS PER MONTH PLUS FORTY-FIVE

 S. 4959                             3
 
                                     CENTS PER MONTH ON THE NUMBER
                                     OF NEW YORK CONSUMERS OVER
                                     NINE MILLION BUT NOT MORE THAN TEN
                                     MILLION
 OVER TEN MILLION                    TWO MILLION, TWO HUNDRED FIFTY
                                     THOUSAND DOLLARS PER MONTH PLUS
                                     FIFTY CENTS PER MONTH ON THE NUMBER
                                     OF NEW YORK CONSUMERS OVER
                                     TEN MILLION.
   4.  TAXPAYERS.    (A)  THERE  SHALL BE A REBUTTABLE PRESUMPTION THAT A
 CONSUMER WHOSE INFORMATION ON RECORD WITH OR AVAILABLE TO  A  COMMERCIAL
 DATA  COLLECTOR  INDICATES  A  NEW YORK HOME ADDRESS, A NEW YORK MAILING
 ADDRESS, OR AN INTERNET PROTOCOL  ADDRESS  CONNECTED  WITH  A  NEW  YORK
 LOCATION  IS  A  NEW  YORK  CONSUMER  FOR  PURPOSES OF THIS SECTION. THE
 PRESUMPTION MAY BE REBUTTED BY EVIDENCE THAT A CONSUMER'S PRIMARY  RESI-
 DENCE,  AS DEFINED IN ARTICLE TWENTY-TWO OF THIS CHAPTER, IS OUTSIDE NEW
 YORK.
   (B) A NEW YORK CONSUMER SHALL BE COUNTED ONLY ONCE IN THE  CALCULATION
 OF THE MONTHLY EXCISE TAX IMPOSED ON A COMMERCIAL DATA COLLECTOR.
   (C)  BUSINESS  ENTITIES  HAVING COMMON OWNERSHIP AS DEFINED IN SECTION
 1563(A) OF THE INTERNAL REVENUE  CODE  SHALL  BE  TREATED  AS  A  SINGLE
 TAXPAYER  FOR  PURPOSES  OF  MEETING  THE  DEFINITION OF COMMERCIAL DATA
 COLLECTOR UNDER THIS  SECTION.  THE  ENTITIES  CONSTITUTING  THE  SINGLE
 TAXPAYER ARE JOINTLY AND SEVERALLY LIABLE FOR ANY TAX DUE.
   (D)  THE  SINGLE  MEMBER  OF A SINGLE MEMBER LIMITED LIABILITY COMPANY
 SHALL BE TREATED AS A CONSUMER UNDER THIS SECTION.
   5. ALTERNATIVE METHODS FOR CALCULATING TAX LIABILITY.    A  COMMERCIAL
 DATA  COLLECTOR AND THE DEPARTMENT MAY AGREE ON A METHODOLOGY FOR DETER-
 MINING THE NUMBER OF NEW YORK CONSUMERS FOR THE PURPOSE  OF  CALCULATING
 THE TAX.
   6.  CREDIT AGAINST TAX PAID TO ANOTHER JURISDICTION. A COMMERCIAL DATA
 COLLECTOR THAT HAS PAID TAX  UNDER  THIS  SECTION  MAY  CLAIM  A  CREDIT
 AGAINST  THE  TAX  PAID WITH RESPECT TO A NEW YORK CONSUMER WHEN ANOTHER
 STATE IMPOSES AN EXCISE TAX IDENTICAL TO  THE  TAX  IMPOSED  UNDER  THIS
 SECTION WITH RESPECT TO THE SAME CONSUMER.
   7.  RECORDKEEPING.  A COMMERCIAL DATA COLLECTOR SHALL MAINTAIN RECORDS
 AS REQUIRED BY THE COMMISSIONER.
   8. RETURNS. (A) A COMMERCIAL  DATA  COLLECTOR  SHALL  FILE  A  MONTHLY
 RETURN AS PRESCRIBED BY THE COMMISSIONER.
   (B)  A  COMMERCIAL DATA COLLECTOR THAT PAYS THE TAX IMPOSED UNDER THIS
 SECTION IN A GIVEN MONTH MUST FILE A RETURN IN SUBSEQUENT  MONTHS  UNTIL
 IT REPORTS NO TAX LIABILITY FOR TWELVE CONSECUTIVE MONTHS.
   9.  ADMINISTRATIVE PROCEDURES. THE ADMINISTRATIVE PROCEDURES SET FORTH
 IN ARTICLE TWENTY-SEVEN OF THIS  CHAPTER  SHALL  APPLY  UNLESS  SPECIFIC
 PROVISIONS TO THE CONTRARY ARE SET FORTH IN THIS SECTION.
   10.  THE  DEPARTMENT  OF TAXATION AND FINANCE MAY PRESCRIBE SUCH RULES
 AND REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THIS SECTION.
   § 2. This act shall take effect immediately and shall apply to all tax
 years commencing on or after the first  day  of  the  first  month  that
 begins more than six months after the law takes effect.

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Senate Bill S4959

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2021-S4959 (ACTIVE) - Details

2021-S4959 (ACTIVE) - Summary

2021-S4959 (ACTIVE) - Sponsor Memo

2021-S4959 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4959

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

Brad Hoylman-Sigal

2021-S4959 (ACTIVE) - Details

2021-S4959 (ACTIVE) - Summary

2021-S4959 (ACTIVE) - Sponsor Memo

2021-S4959 (ACTIVE) - Bill Text download pdf

Comments