Social media platforms: advertising: tax.

Assembly Member Lowenthal's proposed social media advertising tax would establish a new revenue stream dedicated to addressing youth safety concerns, creating a five-year program requiring social media platforms to contribute a portion of their California-based advertising revenue toward mental health, education, and social services.

The legislation creates the Social Media Safety Trust Fund to collect and distribute tax proceeds from advertisements that originate in California or target California residents. The tax would apply to paid messages across video, text, illustration, and audio formats, with exemptions for nonprofit organizations and advertisers spending less than $100,000 annually. Four dedicated accounts within the fund would support specific initiatives: education programs on social media safety, mental health services focused on issues like anxiety and depression, research into protective technologies and best practices, and social services addressing harms such as cyberbullying and exploitation.

The bill defines qualifying social media platforms as services that enable user profiles, social connections, and content sharing between users. Email and direct messaging services alone would not trigger the tax requirements. The measure includes provisions to prevent the new funding from replacing existing state programs, requiring all proceeds to supplement rather than supplant current service levels. The tax and associated programs would sunset on January 1, 2031, unless extended by future legislation.