STATE OF NEW YORK
________________________________________________________________________
4959
2021-2022 Regular Sessions
IN SENATE
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:
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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09016-06-1
S. 4959 2
1 (d) The words "consumer data" mean any information that identifies,
2 relates to, describes, is capable of being associated with, or could
3 reasonably be linked with a consumer, whether directly submitted to the
4 commercial data collector by the consumer or derived from other sources.
5 (e) The words "New York consumer" mean a consumer whose primary resi-
6 dence, as defined in article twenty-two of this chapter, is in New York
7 state.
8 3. Rate of tax. The tax is imposed on commercial data collectors at
9 the following rates based on the number of New York consumers a commer-
10 cial data collector collects data on within the month.
11 New York consumerstax
12 Less than or equal to one million0
13 over one million to two millionfive cents per month on the number
14 of New York consumers over
15 one million but not more
16 than two million
17 over two million to three millionfifty thousand dollars per month plus
18 ten cents per month on the number
19 of New York consumers over
20 two million but not more than
21 three million
22 over three million to four millionone hundred fifty thousand dollars
23 per month plus fifteen cents per
24 month on the number of New York
25 consumers over three million
26 but not more than four million
27 over four million to five millionthree hundred thousand dollars per
28 month plus twenty cents per month
29 on the number of New York
30 consumers over four million but
31 not more than five million
32 over five million to six millionfive hundred thousand dollars per
33 month plus twenty-five cents per
34 month on the number of
35 New York consumers over five
36 million but not more than
37 six million
38 over six million to seven millionseven hundred fifty thousand dollars
39 plus thirty cents per month on the
40 number of New York consumers
41 over six million but not more
42 than seven million
43 over seven million to eight millionone million, fifty thousand dollars
44 per month plus thirty-five cents per
45 month on the number of New York
46 consumers over seven
47 million but not more than eight
48 million
49 over eight million to nine millionone million, four hundred thousand
50 dollars per month plus forty cents
51 per month on the number of New
52 York consumers over eight
53 million but not more than nine
54 million
55 over nine million to ten millionone million, eight hundred thousand
56 dollars per month plus forty-five
S. 4959 3
1 cents per month on the number
2 of New York consumers over
3 nine million but not more than ten
4 million
5 over ten milliontwo million, two hundred fifty
6 thousand dollars per month plus
7 fifty cents per month on the number
8 of New York consumers over
9 ten million.
10 4. Taxpayers. (a) There shall be a rebuttable presumption that a
11 consumer whose information on record with or available to a commercial
12 data collector indicates a New York home address, a New York mailing
13 address, or an internet protocol address connected with a New York
14 location is a New York consumer for purposes of this section. The
15 presumption may be rebutted by evidence that a consumer's primary resi-
16 dence, as defined in article twenty-two of this chapter, is outside New
17 York.
18 (b) A New York consumer shall be counted only once in the calculation
19 of the monthly excise tax imposed on a commercial data collector.
20 (c) Business entities having common ownership as defined in section
21 1563(a) of the internal revenue code shall be treated as a single
22 taxpayer for purposes of meeting the definition of commercial data
23 collector under this section. The entities constituting the single
24 taxpayer are jointly and severally liable for any tax due.
25 (d) The single member of a single member limited liability company
26 shall be treated as a consumer under this section.
27 5. Alternative methods for calculating tax liability. A commercial
28 data collector and the department may agree on a methodology for deter-
29 mining the number of New York consumers for the purpose of calculating
30 the tax.
31 6. Credit against tax paid to another jurisdiction. A commercial data
32 collector that has paid tax under this section may claim a credit
33 against the tax paid with respect to a New York consumer when another
34 state imposes an excise tax identical to the tax imposed under this
35 section with respect to the same consumer.
36 7. Recordkeeping. A commercial data collector shall maintain records
37 as required by the commissioner.
38 8. Returns. (a) A commercial data collector shall file a monthly
39 return as prescribed by the commissioner.
40 (b) A commercial data collector that pays the tax imposed under this
41 section in a given month must file a return in subsequent months until
42 it reports no tax liability for twelve consecutive months.
43 9. Administrative procedures. The administrative procedures set forth
44 in article twenty-seven of this chapter shall apply unless specific
45 provisions to the contrary are set forth in this section.
46 10. The department of taxation and finance may prescribe such rules
47 and regulations as may be necessary to carry out this section.
48 § 2. This act shall take effect immediately and shall apply to all tax
49 years commencing on or after the first day of the first month that
50 begins more than six months after the law takes effect.
