Tax On Ride-Hailing Service Prices In DC To Rise, Fund Metro

WASHINGTON (AP) – The D.C. City Council has approved a tax hike on ride-hailing services such as Uber and Lyft to help fund the Washington Metropolitan Area Transit Authority.

A local station reported the council unanimously approved on Tuesday an additional 5 percent tax, increasing the rate from 1 percent to 6 percent. The tax would apply to all rides that begin in the nation’s capital, regardless of destination.

D.C. Council Member Jack Evans says the taxes will go to the general fund to help repair the Metro. The D.C. Office of the Chief Financial Officer estimates the tax hike could increase the amount Washington annually pays the Metro by $2 million. Mayor Muriel Bowser is expected to approve the tax, which would go into effect Oct. 1.