Washington State Eyes Severance Tax on Digital Data Brokers

Lawmakers in Washington state are taking steps to regulate companies that collect and sell residents’ personal data under legislation that would create the nation’s first data broker registry and data broker severance tax.

Rep. Shelley Kloba (D) is championing a bill, HB 1887, that seeks to hold search engine, social media, and online shopping companies accountable for their increasingly aggressive data mining activities—an issue that has vexed state privacy watchdogs for years. Kloba didn’t respond to a request for comment on her bill.

The legislation lays its goal of placing limits on a rapidly growing business model that ...