WASHINGTON — The cost of your Uber or Lyft ride will soon go up in D.C.
The tax on rides from ride-hailing services such as Lyft and Uber is set to increase to fund Metro after the D.C. Council approved it unanimously Tuesday.
new 6% tax on @Uber & @lyft slated to go into effect Oct 1st. will impact all rides that originate in DC regardless of destination. MD & VA don’t tax ride share but some counties like Prince George’s & Montgomery add a 25cent fee. Tax estimated to generate $23-25 million a year
— Mark Segraves (@SegravesNBC4) June 26, 2018
The tax increases from 1 percent to 6 percent, NBC Washington reported, so that a $20 ride that is currently taxed $0.20 will increase to $1.20.
The District has pledged $178 million in dedicated funding for the transit system.
“That is how we are supporting what Metro needs and what the region needs,” D.C. Mayor Muriel Bowser told NBC Washington.
D.C. Council member Brandon T. Todd, D-Ward 4, expressed concern about the tax increase at a legislative meeting Tuesday. While he was happy that D.C. has established a dedicated source of funding for Metro, he said he was disappointed about how the ride-hailing tax was being handled.
“Inundated by emails from D.C. residents, I’ve looked at ways to address their concerns regarding this vital service. We will move forward today, but this does not close doors on options for the future,” Todd said. He added that he would introduce stand-alone legislation in the coming weeks that will lower the ride-hailing service tax.
The council passed the measure as part of the fiscal 2019 budget.
The tax goes into effect Oct. 1.
