The proposed legislation, known as the Social Media Collection of Consumer Data Tax Act, aims to establish an excise tax on social media platform businesses that collect consumer data. The bill defines key terms related to consumer data and social media platforms, and it specifies that the tax will be imposed starting January 1, 2027, based on the number of Nebraska consumers from whom data is collected. The tax structure is tiered, with varying rates depending on the number of consumers, and all collected taxes will be directed to the Juvenile Mental Health Support Fund.

Additionally, the bill outlines the responsibilities of social media platform businesses regarding tax reporting and compliance, including maintaining records and filing returns as prescribed by the Tax Commissioner. It also establishes the Juvenile Mental Health Support Fund, which will be used to support juvenile mental health services, and grants the Tax Commissioner the authority to create necessary regulations for the implementation of the act.