Philly City Council set to hear public comment on proposed rideshare tax

Philly City Council’s Committee of the Whole will hold a hearing on the proposed 2027 budget — including discussing a new tax to rideshare trips — on Tuesday.

And, on Tuesday afternoon, the public will be invited to Philadelphia City Hall to provide public input on the new tax bills that are included in Mayor Cherelle Parker’s proposed budget for the coming year.

During this public comment, residents will be welcome to comment on new taxes proposed in next year’s budget plan, including a $1 tax to be added to rideshare trips that originate in Philly, a new tax on cell towers and a tax on retail deliveries.

The most controversial of the new tax proposals is likely the plan to tax rideshare trips as both Uber and Lyft have spoken out against the plan.

Lyft has created an online petition, that urges councilmembers to vote down the rideshare tax, arguing that low-income communities would be hit hardest by the charge.

For its part, on Monday, Uber sent a message alert to riders on Monday that encouraged riders to attend today’s public input hearing on the tax proposals.

“Uber is focused on amplifying the voices of the hundreds of thousands of weekly riders who rely on Uber for transportation to work, medical care, and school, and the over 30,000 drivers who rely on Uber to earn flexible income, ensuring policymakers understand the real-world consequences of this proposal,” an Uber spokesperson said in a statement on Monday’s alert to riders.

Just as Lyft, Uber pointed at impact to low-income communities, claiming 60-percent of trips for Uber drivers start or end in low-income neighborhoods.

“This would also hurt drivers,” Uber said in a statement. “We estimate that tens of thousands of drivers across Philadelphia will see their aggregate earnings fall by millions of dollars as a result.”

Uber included more details in a blog post calling out the proposed rideshare tax.

However, Parker has said that the tax is part of her plan to help close a $300 million budget gap in the Philadelphia School District that could result in the loss of 340 jobs.

According to Parker, the tax would generate $48 million and combined with an additional $2.4 million from an existing real estate tax would lead to $50.4 million in new recurring revenue for the school district.

The public input portion of the day’s events at City Hall is expected to begin at 1 p.m. on Tuesday.