The D.C. Council voted to increase taxes on ridehailing services from 1 to 6 percent. (Photo by Elvert Barnes)
Riders who use Uber, Lyft, or Via may notice a slight increase in what they pay for a ride after the D.C. Council approved a new tax on ridesharing services Tuesday. Taxes will go up from 1 to 6 percent per ride, pending approval from Mayor Muriel Bowser. On a $10 ride, that amounts to a 50-cent increase.
The increase goes into effect Oct. 1 and will raise $23 million to help pay for D.C.’s $180 million share of dedicated funding for Metro.
Councilmember Brandon Todd (D-Ward 4) said he was inundated with emails asking the Council to vote down the tax.
The FY 2019 budget — and the rideshare tax increase — passed unanimously, but Todd said he will introduce a new bill in two weeks aiming to lower the tax.
Todd doesn’t have a specific proposal yet, but said he’s working with riders and the companies to find the best mix.
He says his bill will aim to tax the cheaper carpooling-type Uber Pool and Lyft Line at a lower rate than solo rides. That’s an idea both Uber and Lyft support.
The companies say the carpooling services help relieve congestion more than the solo rides.
On Monday, Lyft released a statement ahead of the tax increase vote saying the tax “will have a disproportionate impact on the District’s most vulnerable populations, many of whom who rely on Lyft for critical transportation.”
The ride-hailing company says 6,500 riders contacted the Council to vote down the tax increase.
Lyft said the tax will significantly discourage the use of shared rides.
The budget awaits Mayor Muriel Bowser’s signature and approval from Congress, but no major changes are expected.
This story originally appeared on WAMU.
Jordan Pascale