WASHINGTON -- The District could join New York City and Chicago as the latest city raising money through your ride.
DC Council is considering a six percent tax on ride sharing services such as Uber and Lyft. The proposed legislation, set to be voted on Tuesday, calls for sending the new tax revenue Metro.
The city needs cash for its $180 million share of dedicated funding for the transit agency.
In a statement, Lyft called the proposal "unfair," saying it "will significantly disincentivize the use of shared rides which are not only the most affordable option for Washingtonians but also the best for the city."
Currently, ridesharing is taxed at one percent in The District. If the legislation passes, the cost of a $10 ride would increase $0.50 to $10.60.
Uber is advocating that the city shift the tax burden away from shared rides, such as UberPOOL.
"The DC Council has an opportunity to be a national leader on this issue by voting to sustainably fund Metro while also making it easier for people to choose other shared modes of transportation," said Uber spokesman Colin Tooze.
New York City imposed a similar structure in March. UberPOOL trips are charged a $0.75 fee while single-passenger trips are charged $2.75.
