WASHINGTON (WUSA9) — Those Uber and Lyft prices in Washington, DC may be going up. Why? To help WMATA’s mounting budget problems.
Mayor Bowser is proposing a 3.75 percent tax increase on ride sharing services in the district, raising the current tax rate from 1 percent to 4.75 percent. That means a $10.10 Uber ride will jump to $10.47. On more expensive trips, the increase would be even more.
It’s all part of the Mayor’s 2019 proposed budget and financial plan, which she released Wednesday afternoon.
“We knew we had to have a dedicated, competitive and sustainable source to raising these revenues,” Mayor Bowser said in a conference call with reporters Wednesday afternoon.
The Mayor said the tax hike on Uber and Lyft riders, combined with a proposed commercial property tax increase, and a small sales tax increase, would generate more than $80 million for the city’s cash strapped public transit system.
“Everybody benefits from a safe, reliable and functioning Metro whether you ever get on the Metro or not,” Mayor Bowser said.
The Mayor’s office said there would be no price increase on cab rides, since riders already pay a flat 50 cent fee on each trip.