New York lawmakers eye streaming tax, delivery fee

New York lawmakers eye streaming tax, delivery fee

New York lawmakers are investigating the prospect of levying a tax on streaming services and delivery fees, a move that is becoming increasingly common among U.S. states.

The Empire State is weighing a tax on streaming services, such as Netflix, Hulu, and Amazon Prime, as well as delivery fees from food delivery apps, such as DoorDash and Uber Eats. The tax rate would be based on the type of service provided, and the revenue generated would be directed to the state’s general fund.

The measure, which has been proposed by the Assembly Ways and Means Committee, is part of a broader effort to close budget gaps caused by the coronavirus pandemic. If approved, the tax would take effect as soon as July 1, 2021.

The proposal has been met with both support and criticism. Supporters say the tax would help close the budget gap and generate much-needed funds for the state. Critics, however, argue that the measure would be regressive, unfairly targeting low-income households.

The proposed tax follows a national trend of states looking to capitalize on the growing popularity of streaming services and delivery fees. Over the past few years, several states, including California, Virginia, and Massachusetts, have instituted taxes on streaming and delivery services.

The measure is likely to face a difficult path in the Legislature, and its success depends on the support of both Democratic and Republican lawmakers. If approved, the tax could provide a much-needed revenue boost for the state, as well as provide a model for other states to follow.