S T A T E O F N E W Y O R K
________________________________________________________________________
6199
2021-2022 Regular Sessions
I N A S S E M B L Y
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:
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.
(D) THE WORDS "CONSUMER DATA" MEAN ANY INFORMATION THAT IDENTIFIES,
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
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
CENTS PER MONTH ON THE NUMBER
OF NEW YORK CONSUMERS OVER
A. 6199 3
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.