New Yorkers could be soon facing a tax on popular digital streaming services for entertainment avenues like music, TV, and audiobooks. However, it doesn’t stop there, lawmakers are also looking to add a fee for delivery services to raise money for mass transit.
Massive Revenue Boost for Mass Transit
The State is seeking to raise billions of dollars for mass transit as well as for the MTA in the NYC area. The Assembly’s budget plan would add a 4% state and 4% local sales tax for digital streaming products however, cable and satellite TV would be exempt from the tax.
The money generated from this tax is expected to raise millions, which would include $29 million in the first year for the MTA and could eventually reach as much as $63 million soon. Mass transit outside of the MTA is expected to generate $40 million from the tax.
Delivery Tax
The Assembly also wants a 25-cent fee added to every delivery transaction in the state. That would cover both online and in-store purchases. Things like medicine, medicinal supplies, food, diapers, and baby formula would be exempt from the fee.
Hochul’s Proposal
Lawmakers want this money to directly benefit the MTA as well as other mass transit across the state of New York. This year, Gov. Kathy Hochul has proposed measures to raise more money for the MTA, including a payroll mobility tax for the transit system’s service area and money from casino licenses in New York City.
Wrap Up
This new tax is expected to generate massive amounts of revenue to help out the city’s mass transit, which can certainly be a positive. However, it remains to be seen if the public will be accepting of this new tax if it were to be enacted.