D.C. Mayor Proposes Tax Increase on Ride-Hailing to Fund Transit

Mayor Bowser's 2019 budget also continues investments designed to create affordable housing and distribute homeless shelters throughout the city.

1 minute read

March 29, 2018, 8:00 AM PDT

By Elana Eden


D.C. Streetcar

mariordo59 / Flickr

"The District would raise taxes on sales, commercial property and ride-hailing services such as Lyft and Uber to increase funding for Metro under the 2019 budget Mayor Muriel E. Bowser (D) proposed," The Washington Post reports.

Together, the taxes would raise about $80 million toward the $178.5 million that D.C. has committed to Metro as part of a joint plan with Maryland and Virginia to improve the regional transit system. They break down as follows, per the Post:

The commercial property tax rate would increase 2 cents from $1.85 per $100 of assessed value.

The sales tax would rise from 5.75 percent to 6 percent, smaller than the regional 1 percentage point sales tax increase that District leaders proposed as a permanent Metro funding source. The restaurant and hotels tax would also rise by a quarter- percentage point.

And the tax on gross receipts on "for-hire" vehicle services, passed onto customers as city fees on trips, would rise from 1 percent to 4.75 percent. That would mean a dime charge on a $10 trip would become a 47-cent charge.

Bowser's budget would also invest another $100 million in the District's beleaguered Housing Production Trust Fund, provide $6 million in relief for low-income residents' water bills, and allocate $10.9 million to complete the demolition of the "notorious" D.C. General Hospital homeless shelter, the Post reports.

Wednesday, March 21, 2018 in The Washington Post

portrait of professional woman

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

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

2 hours ago - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

3 hours ago - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

4 hours ago - Newsweek

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.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.