NYS Budget could include streaming service tax
ALBANY, N.Y. (NEWS10)---If you subscribe to digital streaming services, there is a chance you could be spending more on them in the future.
"I casually call it the Netflix tax for a lack of a better term. That’s one of many steaming services just like Hulu. There’s many others," said Assemblyman John McDonald.
The New York State Assembly is proposing a 4% state tax and a 4% local sales tax on digital streaming products. This money would go towards transit systems across the state.
"I know when this was proposed, it wasn’t really my cup of tea, on the other hand, I do believe you need to have a statement of values. Do I want more resources for upstate transit, absolutely," said McDonald.
The Assembly isn’t the only body of the legislature proposing an added tax on something a lot of people use. In the Senate, a surcharge on ride sharing services has been proposed. In New York City, the money would go to the MTA. Outside of the city, it would go towards non-MTA transit funding.
"They are talking about a 50 cent surcharge on each ride. But think about it, if you’re using these services regularly, it sounds modest, but it adds up. These are things people have become dependent on and are begining to rely on. We are trying to encourage people not to— if you’re gonna be out having a good time, take advantage of these ride sharing services. So when you put additional financial services on this, some people may become more resistant," said Senator Joe Griffo.
Budget negotiations are ongoing. The final state budget is due April first.