Proposed Uber, Lyft fees could raise up to $112m
Assessments included in bill on governor’s desk
NEW FEES on Uber and Lyft rides contained in the transportation bond bill sitting on Gov. Charlie Baker’s desk could raise somewhere between $56 million and $112 million, according to an analysis by the Metropolitan Area Planning Council.
The state currently assesses a 20-cent fee on all Uber and Lyft rides. The proposal in the bond bill would replace the current fee with a 40-cent fee on shared rides, a $1.20 fee on non-shared rides, an extra $1 fee on rides in luxury cars, and an extra 20-cent transit fee on rides starting and ending in an area encompassing Boston, Cambridge, and 12 other contiguous communities.
Eric Bourassa, director of transportation at the Metropolitan Area Planning Council, said the council hopes and expects the governor to sign the legislation. “We wanted to highlight how this is a nice, modest increase in funds for transportation,” he said of the revenue analysis.
The Metropolitan Area Planning Council estimated potential revenues using two potential scenarios – one using the actual ride data from 2019 (91.1 million trips in all) and the other cutting the number of trips in half to reflect current pandemic ridership levels based on financial statements issued by Lyft.
The revenue from shared and solo rides is split with 25 percent going to the municipalities where rides originate, 50 percent to the Commonwealth Transportation Fund, and 25 percent to a Transit Authority Fund with the money split evenly between the MBTA and regional transit authorities.Based on the council’s calculations, municipalities would receive between $13 and $26 million, the Commonwealth Transportation Fund between $25.4 and 56.8 million, and MBTA and regional transit authorities sharing between $11.8 and $23.6 million.
The MBTA alone could pocket between $12.5 million and $25 million if all of the money from the 20-cent transit fee flows to the T as well.