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New Tax in the New Budget Impacts All Uber and Lyft Rides

November 1, 2017 By Staff
New Tax in the New Budget Impacts All Uber and Lyft Rides

The two-year budget passed last week, and signed by Malloy this week, levies a 25-cent-per-ride tax on all Uber and Lyft rides.

One part of the two-year budget passed last week and signed by Gov. Dan Malloy (D-Conn.) on Tuesday is a new tax on all Uber and Lyft rides.

Section 654 of the budget reads that, effective January 1, 2018, “Each transportation network company shall pay a fee of twenty-five cents on each prearranged ride that originates in this state.”

The tax is worth $3 million in fiscal year (FY) 2018 – in other words, between January 1, 2018, when the tax goes into effect, and September 30, 2018 – and $5 million in FY 2019, which runs between October 1, 2018 and September 30, 2019.

Details of the budget were released and negotiated quickly, so there was not much time for elected officials or ride-sharing companies to weigh in on the tax.

However, young consumers who rely on Uber and Lyft to travel around Connecticut’s cities may find the tax serves as yet another burden on their quality of life in Connecticut.