"Mississippi Social Media Tax Act"; create.

H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~ R3/5
26/HR26/R2023
PAGE 1 (BS\KW)

To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Porter

HOUSE BILL NO. 1813

AN ACT TO CREATE THE "MISSISSIPPI SOCIAL MEDIA TAX ACT"; TO 1
LEVY A TAX ON SOCIAL MEDIA PLATFORMS THAT FURNISH SERVICES TO 2
USERS IN MISSISSIPPI; TO PROVIDE FOR THE RATE OF THE TAX; TO 3
CREATE THE "SOCIAL MEDIA PLATFORM INFRASTRUCTURE FUND" AS A 4
SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THE PURPOSES FOR 5
WHICH MONIES IN THE FUND MAY BE USED; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. This act shall be known and may be cited as the 8
"Mississippi Social Media Tax Act". 9
SECTION 2. For the purposes of this act, the following terms 10
shall have the meanings ascribed herein: 11
(a) "Social media platform" means any digital 12
application, website, or online service that: 13
(i) Has as its primary purpose enabling users to 14
create profiles and share content with other users; 15
(ii) Facilitates social interaction, content 16
sharing, or communication among users; 17
(iii) Generates revenue through advertising, 18
subscriptions, or data monetization; and 19
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 2 (BS\KW)

(iv) Has at least one million (1,000,000) active 20
users nationally. 21
(b) "Active user" means any natural person who: 22
(i) Maintains a valid account with a social media 23
platform; 24
(ii) Has accessed or used the platform at least 25
once during the tax period; and 26
(iii) Has provided a Mississippi address or is 27
physically located in Mississippi based on verifiable geolocation 28
data during platform usage. 29
(c) "Tax period" means each calendar year. 30
(d) "Commissioner" means the Commissioner of Revenue of 31
the Department of Revenue. 32
(e) "Gross revenue" means all revenue derived from 33
Mississippi active users, including but not limited to advertising 34
revenue, subscription fees, and data monetization attributed to 35
Mississippi users. 36
SECTION 3. (1) There is hereby levied a tax on every social 37
media platform that furnishes services to active users in 38
Mississippi. The tax shall be calculated on a per active user 39
basis at a rate of Seven Dollars ($7.00) per active user per tax 40
period. Each social media platform shall be taxed independently 41
based on its own active user base. A single individual who 42
maintains active accounts on multiple social media platforms shall 43
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 3 (BS\KW)

be counted as an active user by each platform for purposes of 44
calculating the tax owed by each respective platform. 45
(2) The tax imposed by this section shall be in addition to 46
all other taxes imposed by law. 47
(3) A social media platform shall be deemed to furnish 48
services in Mississippi if it has one thousand (1,000) or more 49
active users in Mississippi during any tax period. 50
SECTION 4. (1) A social media platform shall be subject to 51
taxation under this act if it: 52
(a) Has active users in Mississippi; or 53
(b) Derives revenue from users, advertisers, or other 54
sources connected to Mississippi. 55
(2) Physical presence in Mississippi shall not be required 56
to establish nexus for purposes of this tax, consistent with the 57
principles established in South Dakota v. Wayfair, Inc., 585 U.S. 58
162 (2018). 59
SECTION 5. (1) Every social media platform subject to tax 60
under this act shall register with the Department of Revenue 61
within thirty (30) days of meeting the threshold requirements in 62
Section 3(c) of this act. 63
(2) Each registered social media platform shall file a 64
quarterly return with the Commissioner on or before the last day 65
of the month following the end of each tax period. 66
(3) Each return shall include: 67
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 4 (BS\KW)

(a) The total number of active users in 68
Mississippi during the tax period; 69
(b) The calculation of tax due; 70
(c) The methodology used to determine active user 71
counts and Mississippi residency; 72
(d) A certification that the platform has independently 73
calculated its active users without regard to whether such users 74
maintain accounts on other social media platforms; and 75
(e) Such other information as the commissioner may 76
require by regulation. 77
(4) Returns shall be filed electronically in the manner 78
prescribed by the commissioner. 79
SECTION 6. (1) The tax imposed by this act shall be due and 80
payable quarterly on or before the last day of the month following 81
the end of each tax period. 82
(2) Payment shall be remitted electronically to the 83
Department of Revenue in the manner prescribed by the 84
commissioner. 85
(3) If any payment is not made when due, interest shall 86
accrue at the rate established in Section 27-7-53, Mississippi 87
Code of 1972. 88
SECTION 7. (1) There is hereby created in the State 89
Treasury a special fund to be designated as the "Social Media 90
Platform Infrastructure Fund". The fund shall consist of: all 91
revenue collected pursuant to this act; interest earned on monies 92
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 5 (BS\KW)

in the fund; and any appropriations, gifts, grants, or donations 93
made to the fund. 94
(2) (a) Monies in the fund shall be distributed to 95
municipalities and counties for infrastructure improvements as 96
follows: 97
(i) Fifty percent (50%) shall be allocated to 98
counties based on their proportion of the state's total 99
population; 100
(ii) Fifty percent (50%) shall be allocated to 101
municipalities based on their proportion of the state's total 102
municipal population; and 103
(iii) Reasonable administrative costs not to 104
exceed two percent (2%) of annual fund revenue may be retained by 105
the Department of Revenue. 106
(b) Funds distributed to municipalities and counties 107
shall be used exclusively for: 108
(i) Road, street, and bridge construction, 109
maintenance, and repair; 110
(ii) Water and wastewater system infrastructure; 111
(iii) Stormwater management and drainage systems; 112
(iv) Public transportation infrastructure; 113
(v) Broadband and telecommunications 114
infrastructure; 115
(vi) Public safety infrastructure including 116
emergency services facilities; and 117
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 6 (BS\KW)

(vii) Parks, recreational facilities, and public 118
spaces. 119
(c) Each municipality and county receiving funds under 120
this section shall: 121
(i) Establish a separate account for 122
infrastructure funds received; 123
(ii) Submit an annual report to the State Auditor 124
detailing all expenditures; 125
(iii) Make such reports available for public 126
inspection; and 127
(iv) Comply with all applicable procurement and 128
bidding requirements. 129
(d) The Department of Revenue, in consultation with the 130
Department of Finance and Administration, shall: 131
(i) Calculate and distribute funds to 132
municipalities and counties within sixty (60) days after receipt 133
of tax payments; 134
(ii) Use the most recent official population 135
estimates from the United States Census Bureau; and 136
(iii) Promulgate rules and regulations necessary 137
for fund administration and distribution. 138
(e) Municipalities and counties may retain up to five 139
percent (5%) of their allocation for administrative costs related 140
to infrastructure project management and oversight. 141
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 7 (BS\KW)

(f) All funds allocated to municipalities and counties 142
under this section must be expended or legally encumbered for 143
infrastructure projects within the fiscal year in which they are 144
received. Any funds not expended or encumbered by the end of the 145
fiscal year shall be returned to the State General Fund within 146
thirty (30) days after the end of the fiscal year. For purposes 147
of this paragraph (f), funds shall be considered "legally 148
encumbered" when: 149
(i) A binding contract for an infrastructure 150
project has been executed; 151
(ii) Purchase orders for infrastructure materials 152
or services have been issued; 153
(iii) The municipality or county has formally 154
committed the funds to a specific infrastructure project through 155
official action of its governing body and has begun procurement 156
procedures; or 157
(iv) The funds have been deposited into a 158
dedicated infrastructure project account for a project scheduled 159
to commence within six (6) months. 160
(g) The State Auditor shall monitor compliance with the 161
expenditure requirements of this section and may conduct audits to 162
ensure proper use of funds. Municipalities and counties that fail 163
to expend or return funds as required shall be ineligible to 164
receive allocations under this section for the following fiscal 165
year. 166
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 8 (BS\KW)

SECTION 8. (1) The commissioner shall have all powers 167
necessary to administer and enforce this act, including the power 168
to: 169
(a) Conduct audits and examinations; 170
(b) Issue subpoenas for records and testimony; 171
(c) Make assessments for unpaid taxes; and 172
(d) Promulgate rules and regulations. 173
(2) Any social media platform that fails to register, file 174
returns, or pay taxes as required shall be subject to: 175
(a) A penalty of twenty-five percent (25%) of the tax 176
due for failure to file or pay timely; 177
(b) A penalty of fifty percent (50%) of the tax due for 178
fraudulent failure to file or pay; and 179
(c) Interest as provided in Section 6(3) of this act. 180
(3) The Attorney General may bring an action in Hinds County 181
Chancery Court to enjoin any social media platform from operating 182
in Mississippi until it complies with this act. 183
(4) All provisions of Chapter 7, Title 27, Mississippi Code 184
of 1972, relating to administration and enforcement of sales tax 185
laws shall apply to this act insofar as they are not inconsistent 186
herewith. 187
SECTION 9. (1) Social media platforms shall not be required 188
to disclose personally identifiable information of individual 189
users to comply with this act. 190
H. B. No. 1813 *HR26/R2023* ~ OFFICIAL ~
26/HR26/R2023
PAGE 9 (BS\KW)
ST: "Mississippi Social Media Tax Act"; create.
(2) User count data and geographic location information 191
submitted to the Department of Revenue shall be maintained as 192
confidential tax information pursuant to applicable provisions of 193
Chapter 7, Title 27, Mississippi Code of 1972. 194
(3) Aggregated, anonymized data may be used for tax 195
administration and reporting purposes only. 196
SECTION 10. The Department of Revenue shall submit an annual 197
report to the Legislature by January 15 of each year detailing: 198
(a) Total revenue collected under this act; 199
(b) Number of registered social media platforms; 200
(c) Compliance and enforcement activities; and 201
(d) Recommendations for statutory amendments. 202
SECTION 11. This act shall take effect and be in force from 203
and after January 1, 2027. 204