NY State Senate Bill 2025-S4489

Current 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
Feb 05, 2025	referred to budget and revenue

co-Sponsors

2025-S4489 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §186-h, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4959
2023-2024: S2012

2025-S4489 (ACTIVE) - Summary

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

2025-S4489 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4489

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 entertainment 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 busi-
ness 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:

2023-2024: S.2012/A.3959 Braunstein - Died in Committee

2021-2022: S.4959/A.6199 Braunstein -Died in committee

 
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.

2025-S4489 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4489
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2025
                                ___________
 
 Introduced  by  Sens.  KRUEGER,  HOYLMAN-SIGAL -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Budget
   and Revenue
 
 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.
                                                            LBD04012-02-5
 S. 4489                             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 PER MONTH 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
 S. 4489                             3
 
                                     DOLLARS PER MONTH PLUS FORTY-FIVE
                                     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
 BY  A  CONSUMER  DATA  COLLECTOR  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 S4489

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2025-S4489 (ACTIVE) - Details

2025-S4489 (ACTIVE) - Summary

2025-S4489 (ACTIVE) - Sponsor Memo

2025-S4489 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4489

Share this bill

Sponsored By

Liz Krueger

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

Brad Hoylman-Sigal

2025-S4489 (ACTIVE) - Details

2025-S4489 (ACTIVE) - Summary

2025-S4489 (ACTIVE) - Sponsor Memo

2025-S4489 (ACTIVE) - Bill Text download pdf

Comments