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State Policy Center

Minnesota

Minnesota is home to over 500,000 small businesses (SMBs) that employ over 1.3 million people. Policymakers must consider the impacts of new laws and regulations on SMBs before supporting legislation.

Key Policy Issues

Digital Economy

Social Media Tax

In the 2025 legislative session, Minnesota lawmakers considered SF 3197 — a bill that would tax ads on social media. While lawmakers pitched it as a way to go after tech platforms, Minnesota small businesses that use Facebook, Instagram, or YouTube ads to reach customers would be hurt the most.

SF 3197 would mean:

  • Higher ad costs
  • Fewer customers
  • Less room to grow, invest, or hire

Sponsor: Sen. Ann H. Rest

Status: SF 3197 was introduced on April 1, 2025. On April 9, 2025, it was amended in the Senate and is being held for further consideration.

Key Officials

Governor
Tim Walz
Attorney General
Keith Ellison
Senate President
Bobby Joe Champion
Assembly Speaker
Lisa Demuth

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