Governor Jerry Brown of California has signed legislation that would allow the City of San Francisco to tax transportation network companies. The issue must first be approved by 2/3rds of the voters in San Francisco and will not appear on the ballot this year.
Under the legislation, if passed by the voters, the City can apply a tax on TNC trips that originate within the city limits. The legislation does not tax gross receipts, rather, the tax applies to the amount companies actually receive, excluding tolls and airport fees.
Under the legislation, shared-ride trips are taxed at a lower rate (1.5%) than single passenger trips (3.25%). The tax is estimated to raise roughly $30 million and the revenue will go to support SFMTA’s transit operations.