AB6199 Summary:

BILL NOA06199
 
SAME ASSAME AS S04959
 
SPONSORBraunstein
 
COSPNSR
 
MLTSPNSR
 
Add §186-h, Tax L
 
Creates an excise tax on the collection of consumer data by commercial data collectors.
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AB6199 Actions:

BILL NOA06199
 
03/10/2021referred to ways and means
01/05/2022referred to ways and means
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AB6199 Committee Votes:

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AB6199 Floor Votes:

There are no votes for this bill in this legislative session.
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AB6199 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6199
 
SPONSOR: Braunstein
  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 SPECIFIC 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 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: 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.
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AB6199 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6199
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 10, 2021
                                       ___________
 
        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.
                                                                   LBD09016-06-1

        A. 6199                             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 over

        A. 6199                             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.
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