Pols eye TV tax to fund transit
Netflix, etc. could be socked by 8% to head off fare hikes
ALBANY — New Yorkers could soon pay more to stream their favorite shows under a proposal from Assembly Democrats hoping to avoid a fare hike for subway riders.
The Assembly’s proposal would impose a a 4% state tax and a 4% local sales tax on video and audio streaming services, such as Netflix and Hulu, in a bid to assist the cash-strapped Metropolitan Transportation Authority.
Media or a “digital product” that is “electronically or digitally delivered, streamed or accessed” would be subject to the new levy, according to the proposal.
Cable and satellite television as well as newspapers would be excluded from the new tax.
Democratic lawmakers are looking for ways to raise transit funds and convince the MTA to scrap its planned 5.5% fare increase for 2023, as well as an expected future hike in 2025.
The new proposal comes as Gov. Hochul has pitched her own plan to cover the MTA’s $1.2 billion operating deficit with an increase of the state’s payroll mobility tax and $500 million in additional funds from New York City.
Separately, Senate Democrats have proposed raising transit money through the implementation of a residential parking permit system in the five boroughs as well as adding an additional 50 cent surcharge onto Uber and Lyft rides. Another plan to increase the corporate tax rate on businesses reporting more than $5 million a year to 9.25% is being considered.
Legislative leaders and the governor are currently negotiating a state spending plan ahead of New York’s March 31 budget deadline.
The MTA, meanwhile, is struggling to keep subways and buses running long-term after the COVID-19 pandemic decimated ridership and farebox revenue.
The plan to tax video streamers would generate roughly $29 million the first year and an estimated $46 million for public transit statewide by 2027, according to Dem calculations.
Assembly Republicans are pushing back on the various proposals to raise mass transit funds, arguing that Democrats are trying to nickel and dime New Yorkers into paying more in taxes.
“At a time when many families are struggling to pay their bills and keep up with inflation, the last thing government should be doing is making it more expensive to enjoy a night in,” said Sen. Jake Ashby (R-Rensselaer). “I’ll be fighting this tax on streaming services like Netflix and Hulu, and I urge the governor to join me.”