Skip to content
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. It did not advance while being held for additional consideration along with its House companion bill HF 3117. Similar legislation may reappear in future sessions.

Key Officials

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

Stay Informed

Stay up to date on the latest issues facing digitally empowered small businesses and get access to exclusive events and resources by signing up here.

mic icon