Illinois Implements Social Media Platform Fee Affecting User Data Collection
On June 16, 2026, Illinois Governor J.B. Pritzker signed into law the Illinois Fiscal Year 2027 Budget, which includes a new Social Media Platform Fee. This fee, effective January 1, 2027, requires certain social media platforms to pay a monthly fee based on the number of Illinois users from whom they collect data. Unlike traditional digital taxes, this fee is not based on income or advertising revenue but rather on the size of the platform's Illinois user base. The law also prohibits platforms from passing this fee onto users through differential pricing or features based on geographic location. The fee structure varies depending on the number of users, with specific rates for different user thresholds. The law includes enforcement provisions, allowing the Illinois Secretary of State to audit platforms and impose penalties for non-compliance.