Today, Governor Kathy Hochul (D-NY) signed the Fiscal Year 2024 New York State Budget into law, scrapping plans to include a regressive online delivery tax. When budget negotiations began earlier this year, a new tax on products delivered to residents’ doorsteps was initially included in the Assembly’s proposed budget. Upon closer examination, Democrats rejected the proposal and passed a state budget without raising taxes on delivery-dependent populations. 

“For a growing number of Americans, deliveries are not a luxury – they are a necessity. Working parents, the disabled community, seniors and those living in food deserts all depend on accessible delivery services,” said Chamber of Progress CEO Adam Kovacevich. “Today’s budget rejects a regressive tax scheme that hikes prices on everyday items for the people who can least afford it.”

New York’s rejection of the delivery tax follows pushback in Colorado against implementation of a similar regressive delivery tax. There, local businesses objected to the tax, raising concerns they weren’t made aware of the new fees, that the taxes are complicated to comply with, and that inflation-stricken customers don’t need another price hike. The Colorado tax has also gotten attention for raising consumer costs and has sparked a lawsuit for violating voter-approved tax rules.

As both New York and Minnesota debated delivery tax bills this year, Chamber of Progress released an economic analysis which found doorstep taxes would add more cars and emissions on roadways, limit access for those facing mobility challenges, and hurt small business growth.

Delivery tax proposals remain under consideration in Minnesota and Washington state.

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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future.  We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.  

Our corporate partners do not have a vote on or veto over our positions. We do not speak for individual partner companies and remain true to our stated principles even when our partners disagree.