Mayor Lori Lightfoot will seek to more than triple the tax charged on most solo ride-share patrons heading in and out of downtown Chicago as part of her plan to reduce congestion and raise much-needed money to shrink a massive estimated $838 million shortfall in the 2020 budget.
Lightfoot’s plan to bring in new revenue and curb traffic congestion would hike the tax on solo riders using services like Uber and Lyft elsewhere in the city by 74%. That’s despite the fact most outlying neighborhoods don’t face nearly the heavy traffic problems seen in the downtown area.
* From the mayor’s press release…
Based on peak congestion locations and times, the City is proposing a new variable Ground Transportation Tax (GTT) structure. Under the current GTT, a flat rate of $0.60 is assessed per trip citywide, and a $5.00 flat rate is assessed per trip in special zones (the airports, Navy Pier and McCormick Place). As part of an effort to incentivize shared rides to combat both congestion and rising vehicle emissions in Chicago as well as encourage use of higher efficiency modes of like transit downtown, the City proposes the following progressive structure:
Decreasing the GTT on all citywide shared ride-hailing trips from $0.60 per trip to $0.53 per trip.
Increasing the GTT on all citywide single ride-hailing trips from $0.60 per trip to $1.13 per trip.
Assessing a downtown zone surcharge, placing an additional $1.75 per trip for single rides and $0.60 per trip for shared rides.
No changes are proposed to the current $5 special zone fee, the $0.10 per trip accessibility fee or the $0.02 per trip administrative fee. […]
Representing areas among the highest density of trips citywide, the proposed structure will target ride-hailing trips in the downtown zone, a map of which can be found attached, during the hours of 6 a.m. to 10 p.m. on weekdays, when congestion is most prevalent. To ensure continued, reliable access for customers citywide—particularly for the south and west sides—the city’s progressive structure will offer a discount on shared trips in the neighborhoods. Shared trip requests on south and west sides can range upwards of 50 percent of all requests, in comparison to less than 30 percent on the north side and downtown.
The mayor’s congestion study is here.
…Adding… From comments…
“Lock Box” doesn’t interfere with putting the revenue into the general fund?
That’s a good question. Checking now.
…Adding… From a rideshare spokesperson, here are what $10 rides will look like after added fees…
Chicago Central Business District $13.00
Chicago Transit Deserts $11.25
Seattle Proposed $10.75
Rhode Island $10.70
Washington DC $10.60
Los Angeles $10.10