The Minnesota Senate Tax Committee approved a bill Thursday morning that would impose the first “social media tax” in the nation. Just one of many provisions that add up to about $365 million in new taxes over the next two years.

Republicans on the committee balked at the tax increases coming on the heels of bigger tax increases passed by a DFL-controlled legislature in 2023. “The people of Minnesota got smoked the last biennium,” said Rep. Steve Drazkowski, R-Mazeppa. “Another $10 billion tax increase.” He says more taxes this year will send the state in the wrong direction. “We’re heading southbound at 100 miles per hour in the northbound lane.”

“You have to be really wealthy or a multi-national corporation or Elon Musk to complain about this bill,” responded Sen. Ann Rest, DFL-New Hope, chair of the Senate Tax Committee.

She told one tax committee member, “You won’t pay one dime” for the social media tax because it will be imposed primarily on big corporations that mine data from Minnesotans through social media.

Although Rest says most Minnesota taxpayers won’t pay more, the Republican lead on the committee disagreed. “It’s time that we recognize and admit the fact that there is no tax, there is no fee we can place on business that ultimately will not be paid out of the pockets of our consumers,” said Sen. Bill Weber, R-Luverne.

The bill also reduces aid to local governments and cuts back, but does not eliminate, tax credits for filmmakers and other media production in Minnesota.

The bill does include a provision to study the potential impact of sports betting in Minnesota, which some gambling opponents opposed because they fear it will be used to amend an entire sports betting bill onto the tax bill.

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“I’m a little leery of that, of sports betting, coming into the tax bill so late in the session,” said Sen. Scott Dibble, DFL-Minneapolis.

The Senate tax bill still needs to be approved on the Senate floor, where Democrats have a one-seat majority. It also needs to be reconciled with a House tax bill that does not raise taxes or include a social media tax.