Bill Text: MS HB1813 | 2026 | Regular Session | Introduced

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Bill Title: "Mississippi Social Media Tax Act"; create.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2026-02-25 - Died In Committee [HB1813 Detail]

Download: Mississippi-2026-HB1813-Introduced.html

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MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Ways and Means

By: Representative Porter

House Bill 1813

AN ACT TO CREATE THE "MISSISSIPPI SOCIAL MEDIA TAX ACT"; TO LEVY A TAX ON SOCIAL MEDIA PLATFORMS THAT FURNISH SERVICES TO USERS IN MISSISSIPPI; TO PROVIDE FOR THE RATE OF THE TAX; TO CREATE THE "SOCIAL MEDIA PLATFORM INFRASTRUCTURE FUND" AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THE PURPOSES FOR WHICH MONIES IN THE FUND MAY BE USED; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  This act shall be known and may be cited as the "Mississippi Social Media Tax Act".

     SECTION 2.  For the purposes of this act, the following terms shall have the meanings ascribed herein:

          (a)  "Social media platform" means any digital application, website, or online service that:

              (i)  Has as its primary purpose enabling users to create profiles and share content with other users;

              (ii)  Facilitates social interaction, content sharing, or communication among users;

              (iii)  Generates revenue through advertising, subscriptions, or data monetization; and

              (iv)  Has at least one million (1,000,000) active users nationally.

          (b)  "Active user" means any natural person who:

              (i)  Maintains a valid account with a social media platform;

              (ii)  Has accessed or used the platform at least once during the tax period; and

              (iii)  Has provided a Mississippi address or is physically located in Mississippi based on verifiable geolocation data during platform usage.

          (c)  "Tax period" means each calendar year.

          (d)  "Commissioner" means the Commissioner of Revenue of the Department of Revenue.

          (e)  "Gross revenue" means all revenue derived from Mississippi active users, including but not limited to advertising revenue, subscription fees, and data monetization attributed to Mississippi users.

     SECTION 3.  (1)  There is hereby levied a tax on every social media platform that furnishes services to active users in Mississippi.  The tax shall be calculated on a per active user basis at a rate of Seven Dollars ($7.00) per active user per tax period.  Each social media platform shall be taxed independently based on its own active user base.  A single individual who maintains active accounts on multiple social media platforms shall be counted as an active user by each platform for purposes of calculating the tax owed by each respective platform.

     (2)  The tax imposed by this section shall be in addition to all other taxes imposed by law.

     (3)  A social media platform shall be deemed to furnish services in Mississippi if it has one thousand (1,000) or more active users in Mississippi during any tax period.

     SECTION 4.  (1)  A social media platform shall be subject to taxation under this act if it:

          (a)  Has active users in Mississippi; or

          (b)  Derives revenue from users, advertisers, or other sources connected to Mississippi.

     (2)  Physical presence in Mississippi shall not be required to establish nexus for purposes of this tax, consistent with the principles established in South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018).

     SECTION 5.  (1)  Every social media platform subject to tax under this act shall register with the Department of Revenue within thirty (30) days of meeting the threshold requirements in Section 3(c) of this act.

     (2)  Each registered social media platform shall file a quarterly return with the Commissioner on or before the last day of the month following the end of each tax period.

     (3)  Each return shall include:

              (a)  The total number of active users in Mississippi during the tax period;

              (b)  The calculation of tax due;

              (c)  The methodology used to determine active user counts and Mississippi residency;

          (d)  A certification that the platform has independently calculated its active users without regard to whether such users maintain accounts on other social media platforms; and

          (e)  Such other information as the commissioner may require by regulation.

     (4)  Returns shall be filed electronically in the manner prescribed by the commissioner.

     SECTION 6.  (1)  The tax imposed by this act shall be due and payable quarterly on or before the last day of the month following the end of each tax period.

     (2)  Payment shall be remitted electronically to the Department of Revenue in the manner prescribed by the commissioner.

     (3)  If any payment is not made when due, interest shall accrue at the rate established in Section 27-7-53, Mississippi Code of 1972.

     SECTION 7.  (1)  There is hereby created in the State Treasury a special fund to be designated as the "Social Media Platform Infrastructure Fund".  The fund shall consist of:  all revenue collected pursuant to this act; interest earned on monies in the fund; and any appropriations, gifts, grants, or donations made to the fund. 

     (2)  (a)  Monies in the fund shall be distributed to municipalities and counties for infrastructure improvements as follows:

              (i)  Fifty percent (50%) shall be allocated to counties based on their proportion of the state's total population;

              (ii)  Fifty percent (50%) shall be allocated to municipalities based on their proportion of the state's total municipal population; and

               (iii)  Reasonable administrative costs not to exceed two percent (2%) of annual fund revenue may be retained by the Department of Revenue.

          (b)  Funds distributed to municipalities and counties shall be used exclusively for:

              (i)  Road, street, and bridge construction, maintenance, and repair;

              (ii)  Water and wastewater system infrastructure;

              (iii)  Stormwater management and drainage systems;

              (iv)  Public transportation infrastructure;

              (v)  Broadband and telecommunications infrastructure;

               (vi)  Public safety infrastructure including emergency services facilities; and

              (vii)  Parks, recreational facilities, and public spaces.

          (c)  Each municipality and county receiving funds under this section shall:

              (i)  Establish a separate account for infrastructure funds received;

              (ii)  Submit an annual report to the State Auditor detailing all expenditures;

              (iii)  Make such reports available for public inspection; and

              (iv)  Comply with all applicable procurement and bidding requirements.

          (d)  The Department of Revenue, in consultation with the Department of Finance and Administration, shall:

              (i)  Calculate and distribute funds to municipalities and counties within sixty (60) days after receipt of tax payments;

              (ii)  Use the most recent official population estimates from the United States Census Bureau; and

              (iii)  Promulgate rules and regulations necessary for fund administration and distribution.

          (e)  Municipalities and counties may retain up to five percent (5%) of their allocation for administrative costs related to infrastructure project management and oversight.

          (f)  All funds allocated to municipalities and counties under this section must be expended or legally encumbered for infrastructure projects within the fiscal year in which they are received.  Any funds not expended or encumbered by the end of the fiscal year shall be returned to the State General Fund within thirty (30) days after the end of the fiscal year.  For purposes of this paragraph (f), funds shall be considered "legally encumbered" when:

              (i)  A binding contract for an infrastructure project has been executed;

              (ii)  Purchase orders for infrastructure materials or services have been issued;

              (iii)  The municipality or county has formally committed the funds to a specific infrastructure project through official action of its governing body and has begun procurement procedures; or

              (iv)  The funds have been deposited into a dedicated infrastructure project account for a project scheduled to commence within six (6) months.

          (g)  The State Auditor shall monitor compliance with the expenditure requirements of this section and may conduct audits to ensure proper use of funds.  Municipalities and counties that fail to expend or return funds as required shall be ineligible to receive allocations under this section for the following fiscal year.

     SECTION 8.  (1)  The commissioner shall have all powers necessary to administer and enforce this act, including the power to:

          (a)  Conduct audits and examinations;

          (b)  Issue subpoenas for records and testimony;

          (c)  Make assessments for unpaid taxes; and

          (d)  Promulgate rules and regulations.

     (2)  Any social media platform that fails to register, file returns, or pay taxes as required shall be subject to:

          (a)  A penalty of twenty-five percent (25%) of the tax due for failure to file or pay timely;

          (b)  A penalty of fifty percent (50%) of the tax due for fraudulent failure to file or pay; and

          (c)  Interest as provided in Section 6(3) of this act.

     (3)  The Attorney General may bring an action in Hinds County Chancery Court to enjoin any social media platform from operating in Mississippi until it complies with this act.

     (4)  All provisions of Chapter 7, Title 27, Mississippi Code of 1972, relating to administration and enforcement of sales tax laws shall apply to this act insofar as they are not inconsistent herewith.

     SECTION 9.  (1)  Social media platforms shall not be required to disclose personally identifiable information of individual users to comply with this act.

     (2)  User count data and geographic location information submitted to the Department of Revenue shall be maintained as confidential tax information pursuant to applicable provisions of  Chapter 7, Title 27, Mississippi Code of 1972.

     (3)  Aggregated, anonymized data may be used for tax administration and reporting purposes only.

     SECTION 10.  The Department of Revenue shall submit an annual report to the Legislature by January 15 of each year detailing:

          (a)  Total revenue collected under this act;

          (b)  Number of registered social media platforms;

          (c)  Compliance and enforcement activities; and

          (d)  Recommendations for statutory amendments.

     SECTION 11.  This act shall take effect and be in force from and after January 1, 2027.