As we reported previously, there were several proposals in the New York State Budget to help fund mass transit in the New York City region. The Assembly opposed Governor Hochul’s proposal to fund NYC mass transit through a payroll tax on companies located in the New York City region. In its place, the Assembly proposed to impose a consumer sales tax on all streaming services throughout New York State.
We opposed the extension of the sales tax to radio and TV streaming services. A drafted it raised questions about whether it would apply to programming services and set a precedent for advertising taxes.
In the end, Governor Hochul and the New York State Senate opposed the Assembly’s proposal. New York City Area Mass Transit will be funded through an increase in the payroll tax. The basic elements of the agreement are as follows:
Increase the Payroll Mobility Tax for the largest businesses in New York City to 0.6 percent, generating approximately $1.1 billion.
$300 million in one-time NY state aid.
A requirement that New York City contributes $165 million for paratransit services funding.
$65 million to reduce the proposed fare increase on the MTA.
Expanding service frequencies on the subway.
Launching a pilot program providing five free bus routes in New York City – one in each borough – to enhance the customer experience.
In addition to the state-provided support, MTA will implement a $400 million per year plan to ensure operations are efficient and cost-effective.
You can see our opposition to extending the sales tax to streaming services here.