NY State Data Tax: Legislation Would Tax Companies that Make Money from Consumer Data

A new bill working its way through the NY state legislatures wants to tax companies that sell or make money from the use of consumer data.  Assemblywoman Stacey Pheffer Amato wants to create a mutual fund from taxes that would pay a yearly dividend.

New York State Assembly Bill A9112:

Requires a five percent tax on gross income upon every corporation which derives income from the data individuals of this state share with such corporations; establishes the New York data fund to distribute the earnings of the five percent to each taxpayer of the state.

“Every status, like or comment we post, photo we upload, song we listen to, email we send – basically every activity we partake in on the internet or through our phones is used by tech giants for substantial profit,” Pheffer Amato said. “I love being able to keep in touch with my friends and family over social media, drive to and from Albany with the least amount of traffic with my GPS, but the reality is that every time I use these apps, my information is sold.

“I fully support tech companies simplifying our lives, and making our world better by using data responsibly, but consumers should get their fair share,” she said. “By creating a state-run mutual fund that distributes a yearly dividend, New York taxpayers get more money in their pockets from profits they create.”

She compared it to the Alaska Permanent Fund.  The Fund levies a 25% tax each ear on oil and mineral activity into the state.  The money goes into a mutual fund that pays a yearly divided.  Last year, each Alaska resident got a check for $1,600.