Commissioner presents Governor's supplemental tax proposal, including expanded child-care credit and a proposed social-media excise tax

The Senate Taxes Committee received a presentation of the Governor's supplemental tax and budget package (Senate File 50 52) on April 14.

Commissioner of Revenue (recorded in the transcript as Paul Maher Court) outlined the package, calling out a proposed expansion of the child dependent care credit that would raise maximum credits for children ages 0–4 and 5–12, increase the share of eligible expenses and raise phaseout thresholds so more middle-income families would receive larger benefits. The commissioner said the proposed change would benefit "about 104,000 families" and described the young-child credit amounts.

The presentation also covered federal-conformity timing, business and pass-through tax issues, and modernizing the sales tax by lowering the rate and expanding the base to selected services. On technology-sector taxation, the commissioner described a proposed social-media excise tax on platforms that collect consumer data, framing it as capturing a previously untaxed value stream; he estimated the tax would generate about "$100 million dollars a year" and deposit proceeds to a dedicated fund for AI workforce readiness administered by the Minnesota Department of Employment and Economic Development (DEED).

Several business and advertising representatives testified in opposition to the social-media tax. Brian Cook (Minnesota Chamber) and an Internet Coalition representative warned the cost would ultimately be borne by advertisers and small businesses that use social platforms to reach customers. They also raised legal concerns, citing litigation in other jurisdictions as precedent for uncertainty. Senators questioned the Commissioner about revenue estimates, the regressivity of sales-tax expansions and legal risk for a first-in-the-nation social-media excise tax.

The committee laid the Governor's supplemental tax bill over for further consideration.