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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1025
Introduced by Bosn, 25; Bostar, 29; Brandt, 32; Cavanaugh, M., 6; Clouse,
37; DeKay, 40; Dorn, 30; Guereca, 7; Hallstrom, 1; Hardin,
48; Holdcroft, 36; Ibach, 44; Juarez, 5; Kauth, 31;
Lonowski, 33; McKinney, 11; Meyer, G., 17; Murman, 38;
Prokop, 27; Raybould, 28; Sanders, 45; Sorrentino, 39;
Spivey, 13; Wordekemper, 15.
Read first time January 13, 2026
Committee: Revenue
A BILL FOR AN ACT relating to taxation; to adopt the Social Media1
Collection of Consumer Data Tax Act; to establish an excise tax on2
certain social media platform businesses; and to create a fund.3
Be it enacted by the people of the State of Nebraska,4
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Section 1. Sections 1 to 8 of this act shall be known and may be1
cited as the Social Media Collection of Consumer Data Tax Act.2
Sec. 2. For purposes of the Social Media Collection of Consumer3
Data Tax Act: 4
(1) Any term shall have the same meaning as used in Chapter 77,5
article 27, except as otherwise defined in the Social Media Collection of6
Consumer Data Tax Act; 7
(2) Consumer means an individual who establishes an account on an8
app or website owned by a social media platform business whose consumer9
data is collected by the social media platform business regardless of10
whether the individual is charged for establishing the account;11
(3) Consumer data means any information that identifies, relates to,12
describes, is capable of being associated with, or could reasonably be13
linked with a consumer, whether directly submitted to the social media14
platform business by the consumer or derived from other sources;15
(4) Internet protocol address means a unique string of characters or16
other identifier assigned to each device connected to a network for17
communication; 18
(5) Nebraska consumer means a consumer who is a resident individual19
as defined in section 77-2714.01; 20
(6) Social media platform means an electronic medium, including a21
browser-based or application-based interactive computer service, Internet22
website, telephone network, or data network, that allows an account23
holder to create, share, and view user-generated content for a24
substantial purpose of social interaction, sharing user-generated25
content, or personal networking. Social media platform does not include:26
(a) An Internet search provider; 27
(b) An Internet service provider; 28
(c) An email service; 29
(d) A streaming service, online video game, e-commerce, or other30
Internet website where the content is not user generated but where31
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interactive functions enable chat, comments, reviews, or other1
interactive functionality that is incidental to, directly related to, or2
dependent upon providing the content; 3
(e) A communication service, including text, audio, or video4
communication technology, provided by a business to the business's5
employees and clients for use in the course of business activities and6
not for public distribution, except that social media platform includes a7
communication service provided by a social media platform;8
(f) An advertising network with the sole function of delivering9
commercial content; 10
(g) A telecommunications carrier as defined in 47 U.S.C. 153;11
(h) A broadband Internet access service as defined in 47 C.F.R.12
8.1(b); 13
(i) Single-purpose community groups for education or public safety;14
(j) Teleconferencing or video-conferencing services that allow15
reception and transmission of audio and video signals for real-time16
communication, except that social media platform includes17
teleconferencing or video-conferencing services provided by a social18
media platform; 19
(k) Cloud computing services, which may include cloud storage and20
shared document collaboration; 21
(l) Providing or obtaining technical support for a platform,22
product, or service; or 23
(m) A platform designed primarily and specifically for creative24
professional users, as distinct from the general public, to share their25
portfolio and creative content, engage in professional networking,26
acquire clients, and market the creative professional user's creative27
content and creative services through facilitated transactions; and28
(7) Social media platform business means a for-profit entity that29
operates a social media platform that engages, collects, maintains, uses,30
processes, sells, or shares consumer data in support of the entity's31
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business activities. 1
Sec. 3. (1) Beginning January 1, 2027, an excise tax is imposed on2
the collection of consumer data by a social media platform business as3
provided in this section. 4
(2) The tax is imposed on social media platform businesses based on5
the number of Nebraska consumers from whom a social media platform6
business collects consumer data within a month as follows:7
Nebraska Consumers 8 Tax
Fewer than or equal to 50,000 9 Zero
Over 50,000 but not more than 10 $0.10 per month on the number of
250,000 11 Nebraska consumers over 50,000 but
12 not more than 250,000;
Over 250,000 but not more than 13 $40,000 plus $0.25 per month on the
500,000 14 number of Nebraska consumers over
15 250,000 but not more than 500,000;
16 and
Over 500,000 17 $165,000 plus $0.50
18 per month on the number of Nebraska
19 consumers over 500,000.
(3) All taxes collected under this section shall be remitted to the20
State Treasurer for credit to the Juvenile Mental Health Support Fund.21
Sec. 4. (1) Until the contrary is established, it is presumed that22
a consumer whose information on record with or available to a social23
media platform business indicates a Nebraska home address, a Nebraska24
mailing address, or an Internet protocol address connected with a25
Nebraska location is a Nebraska consumer for purposes of the Social Media26
Collection of Consumer Data Tax Act. The burden of proving that a27
consumer is not a Nebraska consumer is on the social media platform28
business. 29
(2) A Nebraska consumer must be counted only once per social media30
platform in the calculation of the monthly tax imposed on a social media31
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platform business. 1
(3) A social media platform business that has paid tax under the2
Social Media Collection of Consumer Data Tax Act may claim a credit3
against the tax paid with respect to a Nebraska consumer if another state4
imposes an excise tax identical to the tax imposed under the act with5
respect to the same consumer. 6
(4) Business entities that are part of a controlled group of7
corporations as defined in section 1563(a) of the Internal Revenue Code8
shall be treated as a single entity for purposes of meeting the9
definition of a social media platform business under the Social Media10
Collection of Consumer Data Tax Act. 11
(5) The single member of a single member limited liability company12
shall be treated as a consumer under this section.13
Sec. 5. A social media platform business must report the tax on a14
return prescribed by the Tax Commissioner and must remit the tax in a15
form and manner prescribed by the Tax Commissioner. The return and the16
tax must be filed and paid using the filing cycle and due dates provided17
for sales and use taxes imposed under the Nebraska Revenue Act of 1967.18
Sec. 6. (1) The provisions of sections 77-2714 to 77-27,13519
relating to deficiencies, penalties, interest, the collection of20
delinquent amounts, confidentiality, refunds, and appeal procedures for21
the tax imposed by section 77-2734.02 shall also apply to the tax imposed22
by section 3 of this act. 23
(2) A social media platform business shall maintain records as24
required by the Tax Commissioner. 25
Sec. 7. The Juvenile Mental Health Support Fund is hereby created.26
The fund shall be administered by the Department of Health and Human27
Services and shall consist of money transferred pursuant to subsection28
(3) of section 3 of this act. Any money in the Juvenile Mental Health29
Support Fund available for investment shall be invested by the state30
investment officer pursuant to the Nebraska Capital Expansion Act and the31
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Nebraska State Funds Investment Act. The fund shall be used by the1
department for the programming and facilities associated with providing2
juvenile mental health services. 3
Sec. 8. The Tax Commissioner may adopt and promulgate rules and4
regulations necessary to carry out the Social Media Collection of5
Consumer Data Tax Act. 6
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