Description: A ballot proposal was passed in San Francisco, CA in November 2019 that would place a tax on rideshare companies (also known as Transportation Network Companies) like Uber and Lyft. On a typical weekday, it is estimated that there are 170,000 rideshare trips (15% of total trips) in San Francisco. At peak periods, this percentage can rise to 25% in downtown and South of Market. Rideshare companies were estimated to be responsible for about 50% of the congestion increase in the city from 2010 to 2016.

Passengers for rides originating in San Francisco are taxed 1.5% for a shared ride or 3.25% for a solo ride starting in 2020. The tax—which would sunset in 2045—also will apply to any self-driving autonomous vehicle services introduced later. All rides in zero-emission vehicles are taxed at 1.5%. The new tax is expected to raise about $32M/year.

New York City implemented a similar congestion tax on all for-hire vehicles (including taxis, limos, in addition to rideshare companies) in portions of Manhattan effective January 1, 2019.

Massachusetts & Portland currently have a very low flat fee/ride for rideshare. Boston is considering adding a congestion surcharge within its city limits.

Goal: Reduce Vehicle Miles Traveled (VMT) by Congestion Mitigation tax for commercial rideshare companies like Uber and Lyft