The city of Chicago is already taxing rides with transportation network companies like Uber and Lyft. Now mayor Rahm Emanual wants to raise those fees and spend the extra money on transit projects.
Heather Cherone breaks the news about a potentially game changing proposal in Chicago, where "[t]he city is set to raise taxes on Uber or Lyft rides by 29 percent next year to fund improvements to CTA bus and train lines."
Mayor Rahm Emanual announced the proposed tax earlier this week, but the City Council still needs to approve the tax next month. If approved, "the city will add 67 cents to the cost of every ride hailed with a service such as Uber or Lyft next year, up from the current charge of 52 cents per ride," according to Cherone. " In 2019, that surcharge will rise another 5 cents to 72 cents — a 38 percent increase from 2017 rates, according to the mayor's proposal."
The city's existing rideshare taxes and fees are already generating a significant chunk of revenue—$56.9 million in 2016, with 81 percent of the money coming from Uber and Lyft. "In 2017, the city expects to collect $85.2 million, with 88 percent coming from Uber and Lyft," adds Cherone.
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