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Your Uber and Lyft rides in Washington, DC, are about to get a bit more pricey in coming months.
On Tuesday, The DC council unanimously approved an additional 5% tax on ride-hailing services, like Uber and Lyft, starting October 1 to increase funds for the metro system. DC currently puts $23 million annually to the metro system, and with this tax, the council is hoping to increase that to $25 million. Uber and Lyft rides will go from a 1% tax to 6%, regardless of destination.
Both Uber and Lyft expressed their concerns over this tax increase.
“While we’re disappointed that City Council voted to increase taxes across the board without providing measures to incentivize the use of shared rides, Lyft remains focused on providing the best transportation experience possible,” a Lyft spokesperson said in a statement. “We look forward to continuing to work with DC passengers and drivers to provide affordable and reliable rides throughout the District.”
Uber believes UberPOOL users should be taxed at a lower rate because the pool service helps to reduce road congestion and environmental impacts. DC Council Member Brandon Todd believes these taxes will benefit DC residents as a whole but will address the rideshares suggestions.
In 2 weeks, I will introduce a bill that eliminates the flat tax on rideshare. DC residents made it clear that they care about this issue & we need to give it the attention it deserves. We should have a hearing & let advocates, stakeholders & residents make their opinions known.
— Brandon T. Todd (@CMBrandonTodd) June 26, 2018
Uber said in a statement the company applauds Council Member Todd for announcing his intention to address this issue and for joining DC Mayor Muriel Bowser in calling for a tiered tax structure.
This ride-haling tax is part of a $178.5 million spending plan to benefit the city’s metro system. DC is also increasing taxes on several items including alcohol, commercial properties and hotels.
Featured image by Jaap Arriens/NurPhoto via Getty Images.
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