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S 9352

Establishes a tax on video streaming services; and establishes the media arts technology and education fund

2025 Regular Session Introduced by Cordell Cleare and 8 co-sponsors

A 5% gross receipts tax on New York video streaming services would fund a state Media Arts Technology and Education Fund to support broadband, local media, arts, and digital infras

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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Bill Summary · S 9352

Purpose and overall aim

  • S. 9352, known as the Technology, Education and Arts through Media Act (TEAM NY Act), would establish a new state fund and impose a 5% tax on gross receipts of video streaming services operating in New York.
  • Revenue from the tax would be deposited into the newly created Media Arts Technology and Education Fund, with the goal of expanding broadband access, supporting community media, and bolstering local arts, culture, and technology resources for New Yorkers.
  • The act emphasizes using streaming service contributions to fund digital infrastructure and local media resources in a manner analogous to cable providers’ support for facilities and services.

Key provisions and changes

  • Tax on video streaming services:
    • A new Article 15 (Video Streaming Tax) would impose a 5% tax on gross receipts from video streaming service providers with customers in New York.
    • The tax applies for each year in which the provider offers streaming services to state subscribers.
    • Definitions:
    • “Video streaming service” = subscription-based distribution or provision of video programming displayed to the viewer for a fee (excludes traditional cable service under federal law).
    • “Video streaming service provider” = entity that transmits/provides streaming services to NY subscribers.
    • “Gross receipts” = all consideration received by the provider (and affiliates) in connection with delivering streaming services in the state, with standard exclusions (uncollected revenue, sale of capital assets not used in providing streaming, bundled charges that cannot be separately identified, etc.).
    • “Subscriber/customer,” “video programming,” and “community media organization” are defined, with the latter referring to entities operating public access or educational/government channels.
  • Administration and collection:
    • Requires regulations by December 31, 2026 to determine gross receipts and sourcing (based on customer use location and billing address).
    • Tax returns due by April 15 each year for years beginning January 1, 2026 onward; payment due with the return.
    • The tax cannot be passed through to subscribers; providers are responsible for paying the tax and cannot mislead customers about who owes it.
    • Penalties for failure to file/pay: 10% of tax due, plus 5% per month (up to 30%) for continuing delinquency.
    • Interest for underpayments: at least 7.5% per year, compounded daily (rate set by the commissioner if not specified).
    • Recordkeeping: providers must maintain records for 3 years.
  • Revenue distribution and the Media Arts Technology and Education Fund (99-m):
    • All revenue from the streaming tax is deposited into the Fund, with the comptroller allowed to retain up to 10% for annual operational expenditures.
    • The Fund is established to be separate and protected; deposits must be secured (U.S. or New York state obligations).
    • Annual distributions from the Fund:
    • 30% to the state general fund.
    • 30% to municipalities within each municipal class, allocated by class population and individual municipality population.
    • 30% to identified community media organizations, allocated by the population served; for New York City, equal distribution among NYC organizations based on NYC population divided by the number of organizations.
    • 10% to other qualified organizations identified by regulations (e.g., non-profit local news/media, digital equity and inclusion, local arts and culture, or infrastructure planning for connectivity).
    • The commissioner of taxation and finance will establish procedures to identify eligible entities and allocate funds according to regulations.
  • Effective date:
    • The act would take effect immediately, applying to tax years beginning on or after January 1, 2027.

Who/what is affected

  • Video streaming service providers with customers in New York would be subject to the 5% gross receipts tax.
  • Subscribers/customers in New York would not bear the tax directly; providers must handle the tax collection at the entity level.
  • Community media organizations and other qualified local organizations would become eligible recipients of Fund distributions.
  • Municipalities across New York State, as a class, would receive a share of Fund distributions based on population.

Procedural and timeline notes

  • Introduced in March 2026 and referred to the Senate Investigations and Government Operations Committee.
  • Regulatory framework for sourcing and administration of the tax to be promulgated by December 31, 2026.
  • Tax year applicability starts January 1, 2026, with filings due April 15, 2027, for the first year covered (per statute text), and immediate effect for the Fund once enacted.
  • The bill creates ongoing annual funding implications for state and local entities and assigns governance responsibilities to the commissioner of taxation and finance and the comptroller for Fund administration.

Summary in plain terms

S. 9352 would tax video streaming services at 5% of their New York gross receipts, starting for tax years beginning in 2026, with regulatory guidance on how receipts are sourced. Revenue goes into the new Media Arts Technology and Education Fund, designed to support broadband expansion, community media, local arts and culture, digital equity, and related infrastructure. The Fund distributions are allocated to the state, municipalities, community media organizations, and other qualified groups, with a defined formula and regulatory oversight. The bill aims to ensure streaming services contribute to digital infrastructure and local media resources for all New Yorkers.

Compiled from official sources — confirm details with the bill’s official record.

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