Blue States Push For Tax Hikes On Deliveries, Rideshares And Streaming

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James Lynch Investigative Reporter
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Taxes on delivery transactions, ridesharing and streaming services are some of the tax proposals being weighed by Democratic state legislatures.

Minnesota Democrats have proposed taxes on package deliveries and rides from services such as Uber and Lyft to provide the state with additional revenue. State Rep. Erin Koegel’s bill would add 75 cent fees to retail delivery purchases beginning in July 2024 and Rep. Frank Hornstein’s bill would add fees to each ride taken with rideshare services, Minn Post reported. (RELATED: Major Retailer Announces Impending Store Closure, Citing ‘Crime’ And ‘Safety’ Issues)

A similar delivery tax of 25 cents per transaction was introduced by New York State Sen. Andrew Gounardes with the proceeds going to infrastructure repairs, New York Post reported. Another tax floated by New York Democrats is a 4% sales tax on streaming services including Netflix, Hulu, HBO and Paramount+, potentially adding $100 million of revenue to the state’s Metropolitan Transit Authority.

The delivery tax proposals resemble Colorado’s 27 cent tax on deliveries passed as part of a 10-year, $5.4 billion plan to improve the state’s infrastructure devised in 2021, per Colorado Politics. Republican state Rep. Rose Pugliese put forward a bill to repeal the tax in February that was ultimately unsuccessful.

Democrats in Washington state are weighing tax increases on property sales by raising the state’s real estate excise tax, The Seattle Times reported. Properties sold for more than $3,025,000 would go from 3% to 3.5% and cities and counties would be allowed to level a 0.25% local real estate tax. The proposal would require properties sold at $750,000 or less to be taxed at 1.1%, up from the current threshold of $525,000 for the 1.1% rate.