Bill Text: NY A03959 | 2023-2024 | General Assembly | Introduced
Bill Title: Creates an excise tax on the collection of consumer data by commercial data collectors.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2024-01-03 - referred to ways and means [A03959 Detail]
Download: New_York-2023-A03959-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3959 2023-2024 Regular Sessions IN ASSEMBLY February 8, 2023 ___________ Introduced by M. of A. BRAUNSTEIN -- read once and referred to the Committee on Ways and Means 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: 1 Section 1. The tax law is amended by adding a new section 186-h to 2 read as follows: 3 § 186-h. Excise tax on the collection of consumer data by commercial 4 data collectors. 1. Imposition of tax. There is hereby imposed a monthly 5 excise tax on the collection of the consumer data of individual New York 6 consumers by commercial data collectors. The tax shall apply regardless 7 of the format, electronic or otherwise, in which the consumer data is 8 collected by the commercial data collector. 9 2. Definitions. As used in this section: 10 (a) The words "commercial data collector" mean a for-profit entity 11 that: 12 (i) collects, maintains, uses, processes, sells or shares consumer 13 data in support of its business activities; and 14 (ii) collects consumer data, other than consumer contact information, 15 on more than one million individual New York consumers in a month within 16 the calendar year. 17 (b) The word "consumer" means an individual who purchases goods or 18 services from a commercial data collector or uses the services of a 19 commercial data collector, whether charged for those services or not. 20 (c) The words "consumer contact information" mean (i) a consumer's 21 email address, telephone number, telefax number, home address, mailing 22 address; and (ii) credit card information necessary to engage in a sales 23 transaction. 24 (d) The words "consumer data" mean any information that identifies, 25 relates to, describes, is capable of being associated with, or could EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04825-01-3A. 3959 2 1 reasonably be linked with a consumer, whether directly submitted to the 2 commercial data collector by the consumer or derived from other sources. 3 (e) The words "New York consumer" mean a consumer whose primary resi- 4 dence, as defined in article twenty-two of this chapter, is in New York 5 state. 6 3. Rate of tax. The tax is imposed on commercial data collectors at 7 the following rates based on the number of New York consumers a commer- 8 cial data collector collects data on within the month. 9 New York consumers tax 10 Less than or equal to one million 0 11 over one million to two million five cents per month on the number 12 of New York consumers over 13 one million but not more 14 than two million 15 over two million to three million fifty thousand dollars per month plus 16 ten cents per month on the number 17 of New York consumers over 18 two million but not more than 19 three million 20 over three million to four million one hundred fifty thousand dollars 21 per month plus fifteen cents per 22 month on the number of New York 23 consumers over three million 24 but not more than four million 25 over four million to five million three hundred thousand dollars per 26 month plus twenty cents per month 27 on the number of New York 28 consumers over four million but 29 not more than five million 30 over five million to six million five hundred thousand dollars per 31 month plus twenty-five cents per 32 month on the number of 33 New York consumers over five 34 million but not more than 35 six million 36 over six million to seven million seven hundred fifty thousand dollars 37 plus thirty cents per month on the 38 number of New York consumers 39 over six million but not more 40 than seven million 41 over seven million to eight million one million, fifty thousand dollars 42 per month plus thirty-five cents per 43 month on the number of New York 44 consumers over seven 45 million but not more than eight 46 million 47 over eight million to nine million one million, four hundred thousand 48 dollars per month plus forty cents 49 per month on the number of New 50 York consumers over eight 51 million but not more than nine 52 million 53 over nine million to ten million one million, eight hundred thousand 54 dollars per month plus forty-five 55 cents per month on the number 56 of New York consumers overA. 3959 3 1 nine million but not more than ten 2 million 3 over ten million two million, two hundred fifty 4 thousand dollars per month plus 5 fifty cents per month on the number 6 of New York consumers over 7 ten million. 8 4. Taxpayers. (a) There shall be a rebuttable presumption that a 9 consumer whose information on record with or available to a commercial 10 data collector indicates a New York home address, a New York mailing 11 address, or an internet protocol address connected with a New York 12 location is a New York consumer for purposes of this section. The 13 presumption may be rebutted by evidence that a consumer's primary resi- 14 dence, as defined in article twenty-two of this chapter, is outside New 15 York. 16 (b) A New York consumer shall be counted only once in the calculation 17 of the monthly excise tax imposed on a commercial data collector. 18 (c) Business entities having common ownership as defined in section 19 1563(a) of the internal revenue code shall be treated as a single 20 taxpayer for purposes of meeting the definition of commercial data 21 collector under this section. The entities constituting the single 22 taxpayer are jointly and severally liable for any tax due. 23 (d) The single member of a single member limited liability company 24 shall be treated as a consumer under this section. 25 5. Alternative methods for calculating tax liability. A commercial 26 data collector and the department may agree on a methodology for deter- 27 mining the number of New York consumers for the purpose of calculating 28 the tax. 29 6. Credit against tax paid to another jurisdiction. A commercial data 30 collector that has paid tax under this section may claim a credit 31 against the tax paid with respect to a New York consumer when another 32 state imposes an excise tax identical to the tax imposed under this 33 section with respect to the same consumer. 34 7. Recordkeeping. A commercial data collector shall maintain records 35 as required by the commissioner. 36 8. Returns. (a) A commercial data collector shall file a monthly 37 return as prescribed by the commissioner. 38 (b) A commercial data collector that pays the tax imposed under this 39 section in a given month must file a return in subsequent months until 40 it reports no tax liability for twelve consecutive months. 41 9. Administrative procedures. The administrative procedures set forth 42 in article twenty-seven of this chapter shall apply unless specific 43 provisions to the contrary are set forth in this section. 44 10. The department of taxation and finance may prescribe such rules 45 and regulations as may be necessary to carry out this section. 46 § 2. This act shall take effect immediately and shall apply to all tax 47 years commencing on or after the first day of the first month that 48 begins more than six months after the law takes effect.
