Mayor Parker ups her rideshare tax proposal to $1 per trip
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Philadelphia Mayor Cherelle Parker is upping her proposal for a new rideshare tax to help close the school district's massive budget gap.
Why it matters: Rideshare companies like Uber and Lyft are likely to fight back hard against the threat of a second tax on their businesses. (Think: The battle over Philly's soda tax a decade ago.)
- Plus: The new fee could make rides cost more within Philly proper.
State of play: Parker's plan would impose a $1-per-ride fee on rideshares in the city starting Jan. 1, 2027, the mayor revealed at a Monday news conference alongside school leaders.
- Context: That's up from the 20-cent-per-ride fee she pitched earlier this month during her budget proposal.
- The fee would bring in $24 million this year, which would increase to $48 annually in future years.
Between the lines: The proposal needs City Council approval.
Threat level: Philly school officials say the district is facing a $300 million deficit this year.
- Without funding to close that gap, the district has proposed eliminating and reassigning hundreds of positions.
Yes, but: Parker's plan would allow the district to save more than 200 positions, but not completely close the budget gap.
Worth noting: This new tax would add to what the city's parking authority already charges rideshare companies — 1.4% on gross receipts.
Zoom in: The tax would also help fund:
- 🚌 Free SEPTA passes for eligible school district employees.
- 🅿️ A three-year pilot program to help residents resolve license and registration suspension due to unpaid parking tickets with the city's parking authority.
What they're saying: "This infusion of new revenue would stop the elimination of jobs and the jeopardizing of our children's progress here in the city," Parker said at the news conference.
The other side: Uber spokesperson Jazmin Kay tells Axios that Parker's new tax would "hurt drivers and hit everyday Philadelphians, making rides less affordable and threatening critical access to jobs, healthcare, and essential services."
- Lyft spokesperson Adrian Durbin tells Axios that Parker's proposal would increase the price of everyday rides.