New York Assembly Bill A04590

New York 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/4/25
• Refer: 1/7/26

Caption

Adds a three dollar surcharge on online delivery transactions terminating within the city of New York to be used to fund the operating costs of buses and subways in the city of New York.

Summary

A04590 would add a new article to the Tax Law imposing a $3 surcharge on each online delivery transaction delivered within the City of New York, beginning January 1, 2027. The surcharge applies broadly to items purchased online and delivered in the city, and the bill requires the charge to be passed through to the purchaser and separately stated on the receipt. The measure also creates registration, reporting, recordkeeping, and enforcement requirements for businesses liable for the surcharge, including monthly returns, payment deadlines, penalties for nonpayment, and authority for the tax commissioner to require electronic filing and payment. The bill contains several exemptions from the surcharge, including deliveries of drugs and medicines, medical equipment and supplies, diapers, baby formula, and food or food products. It also exempts transactions where SNAP or WIC benefits are used as full or partial payment, so long as all items in the transaction are eligible under those programs. Revenue collected from the surcharge would be deposited into the general transportation account of the New York City Transportation Assistance Fund to support operating costs for buses and subways in New York City.

Impact

The bill would amend the state Tax Law by creating a new delivery surcharge regime applicable only to online delivery transactions within New York City. It would impose new administrative obligations on sellers, including registration with the Department of Taxation and Finance, monthly returns, record retention, and compliance with commissioner rules, while also authorizing penalties and enforcement mechanisms similar to those used for other state taxes. The bill would direct all surcharge revenue, interest, and penalties to the New York City Transportation Assistance Fund for transit operating support, thereby linking e-commerce deliveries to city transit funding.

Sentiment

No committee transcript or vote record is available in the provided materials, so there is no documented floor or committee debate to gauge formal sentiment. Based on the bill text and caption, the proposal appears fiscally motivated and aimed at generating dedicated transit revenue, while also carving out exemptions for essential goods and public-assistance purchases. The overall framing suggests a policy rationale focused on funding buses and subways rather than broadly taxing necessities.

Contention

The main likely point of contention is the imposition of a new $3 surcharge on online deliveries in New York City, which could be viewed by retailers, delivery platforms, and consumers as an added cost on e-commerce and home delivery. Another possible issue is administrative burden, since the bill requires registration, monthly reporting, recordkeeping, and compliance procedures for liable sellers. Supporters would likely emphasize the transit funding purpose and the exemptions for medicines, diapers, baby formula, food, and SNAP/WIC transactions, while critics may focus on the surcharge’s effect on delivery costs and the scope of businesses subject to the tax.