Tax Uber and Lyft to Pay for Transit? Chicago Might

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.

1 minute read

October 18, 2017, 1:00 PM PDT

By James Brasuell @CasualBrasuell

shelly bychowski / Shutterstock

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.

FULL STORY: New Tax On Uber, Lyft Would Pay For CTA Improvements, Rahm Says

Tuesday, October 17, 2017 in DNAinfo Chicago

Infrastructure Transportation Illinois Chicago Transportation Network Companies Ridesharing Tax Ridesharing Fee Transit Revenue Transit Funding Uber Lyft Mayor Rahm Emanuel Ride-Hailing Fee View More

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Learn More

Advertise with us

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.