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New Yorkers may have to pay more for streaming services like Netflix, Hulu, Disney+, HBO Max, Spotify and Audible.
WGRZ reports that the New York legislature on Thursday submitted a budget bill that would add an overall 8% sales tax to digital media subscriptions for video, music and audiobook platforms. 4% is state sales tax and the remaining 4% is local sales tax.
According to the proposal, any other media or “digital products” “distributed, streamed or accessed electronically or digitally” would be taxed. It mainly affects cord cutters. Cable TV, satellite TV, newspapers and magazines are excluded.
WKBW reports that most of the funds will go to New York City’s Metropolitan Transit Authority (MTA) costs. From 2026 to 2027, an estimated $63 million will be raised for the MTA and an estimated $46 million will go to public transit elsewhere in the state.
New York State Rep. Stephen Hawley (R,C-Batavia) said he would oppose the proposal in the Democratic-led Congress.
“I think this is another example of needing more money or income for every new program that is an extension they are coming up with,” Hawley told WKBW. “It makes absolutely no sense. Attacking every individual who has this type of device connected to their TV or computer is unwise and is really aimed at working men and women in our state.”
House Majority Leader Crystal Peoples-Stokes (D-Buffalo) told WGRZ the final state budget is due by April 1 but hopes the tax proposal will be included .
Peoples-Stokes said: “If you’re talking to someone who drives a car and doesn’t need to use the bus, they’re probably going to say, ‘Why is there a new tax in place?’ When I talk to people who use the bus, they say, ‘Yes, we need public transport assistance.'”
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