In order to help the Metropolitan Transportation Authority's failing finances during the COVID-19 pandemic, Gov. Kathy Hochul's 2024 budget proposal included a hefty payroll tax increase.
In its one-house budget proposal, the New York State Assembly responded with other alternatives, including Uber surcharges and streaming service taxes.
The funds from the proposed 4 percent digital streaming sales tax would mostly go to the MTA and New York City's subway system.
"Being from Rochester, one of the issues we always have is that New York City gets everything," said Pedro Benitez. "So I am not with taxing the rest of the state for a New York City issue."
"If we're going to be funding metro costs in New York City, in relation to the rest of the state, what other taxation are they going to pull out of the back of their pocket on the citizens of New York state to foot the bill for their inconsistencies downstate," Upstate resident Peter Humphreys said.
Assemblyman Phil Steck, a Democrat, said he does not support this tax but one of the arguments for the tax is the impact New York City has on the rest of the state.
"The counter argument is that we all benefit from the success of New York City," he said. "There are better ways to pay for it. For example, reinstating the stock transfer tax would have an allotment for the MTA. It's only fair to say to Wall Street 'You benefit from the MTA, you can help pay for it.'"
Assembly Democrats say they're trying to avoid a rate hike on the MTA, which is why the streaming sales tax is under consideration, though neither Hochul nor the state Senate included this type of tax in their budget.
"There is a ton of money going down there to support the MTA," Republican state Sen. Jake Ashby said. "I get it. It's a huge transit system, but when we look at the disparity between the MTA and the rest of our transportation system in New York state, it's pretty imbalanced."
Several states have enacted similar taxes, while even some cities like Chicago have also passed "Netflix tax" additions.