Transportation Network Company (TNC) taxes/fees by state/city in the United States

Cities and states across the U.S. are assessing fees or taxes on
transportation network company (TNC) platforms, such as Uber and Lyft. The
goals of these policies include traffic and emissions mitigation, as well
as revenue generation, among other objectives. Our research aims to assess
the goals and effectiveness of these fees in achieving some of these
policy objectives, primarily congestion and emissions mitigation. The
analysis addresses a core difficulty in comparing TNC fees—some fees are
assessed per mile and others per trip. We compare 21 fees implemented by
state and local governments across the United States and apply a
methodology to compare these diverse fees and taxes based on a
hypothetical ride informed by Uber’s fare calculator, as well as other
sources. Our findings show that when adjusted for comparison, the highest
fees, by a wide margin, are assessed in downtown New York City and Chicago
(during peak hours). A key policy implication of this research is that
most fees or taxes are not large enough to affect enough travelers'
choices to hail a TNC, and most do not differentiate between solo and
pooled/shared rides. Only San Francisco, Chicago, New York City, and New
Jersey differentiate between solo and shared rides, which is likely to
influence travelers in choosing to share a ride. This is problematic given
that increasing passengers per vehicle mile traveled is an essential
strategy in managing congestion and reducing emissions associated with all
vehicle travel, including TNCs.