DC mayor looks to raise ridesharing taxes to help pay for Metro - Technical.ly DC

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Mar. 22, 2018 10:05 am

DC mayor looks to raise ridesharing taxes to help pay for Metro

The increase in gross receipts tax on services like Uber and Lyft is among sources to fund Metro. The costs would be passed on to riders.
A Lyft ride.

A Lyft ride.

(Courtesy photo)

Mayor Muriel Bowser is proposing that funding for Metro comes in part from tax increases on ridesharing services like Lyft and Uber.

According to the Washington Post, Bowser defended the hike as bringing the ridesharing companies in line with taxis, as well as helping to pay for the District’s $178.5 annual million share for Metro. Riders would feel the increased costs, per the Post:

And the tax on gross receipts on “for-hire” vehicle services, passed onto customers as city fees on trips, would rise from 1 percent to 4.75 percent. That would mean a dime charge on a $10 trip would become a 47-cent charge.

Lyft indicated the costs could be passed on to riders who need the service or live in low-income areas.

Lyft is proud to offer affordable and reliable transportation throughout the DC-metro region,” Lyft DC Communications Manager Campbell Matthews said in a statement. “While we are supportive of efforts to improve transit options, it is also critical that rideshare remains affordable for the tens of thousands who rely on Lyft in DC – particularly those who live further from transit or need a ride when public transit doesn’t operate.”

Under Bowser’s plan, the hike for ridesharing would go along with increases on commercial property and sales tax rates to help pay for Metro. It was part of the mayor’s budget proposal for next fiscal year, which must be approved by the D.C. Council.

Companies: Lyft, Uber
People: Muriel Bowser
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