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The latest news and announcements from Mayor London N. Breed

Mayor London Breed and Supervisor Aaron Peskin Introduce Tax Measure on TNC Trips to Fund Investments in Transportation

If approved by the Board of Supervisors and voters, the measure would add a 1.5%-3.25% surcharge on TNC rides originating in San Francisco to fund congestion mitigation projects, including safe streets and Muni transit operations

San Francisco, CA — Mayor London N. Breed and Supervisor Aaron Peskin will today introduce a ballot measure at the Board of Supervisors that would add a surcharge to rides made through Transportation Network Companies (TNC) in San Francisco in order to fund street safety projects and investments in Muni service.

The measure would impose a 3.25% surcharge on all individual rides and a 1.5% surcharge on shared rides that originate in San Francisco. Rides in electric vehicles (EVs) would have a surcharge of 1.5%, regardless of whether they are individual or shared, in order to encourage adoption of EVs. The measure is estimated to raise up to $35 million annually for transit and Vision Zero safety projects. The proposal was crafted by Mayor Breed and Supervisor Peskin in cooperation with TNC companies Uber and Lyft. It requires the support of six supervisors to be placed on the November 2019 ballot and would need to pass with a 2/3 vote.

“This measure will invest in our public transportation, continue to make our streets safer, and reduce congestion so that people can get around easier,” said Mayor Breed. “This is a collaborative approach to advance San Francisco’s transit-first policy and mitigate the impact of TNC trips on our streets.”

"We all know congestion in San Francisco is terrible and everyone needs to be a part of the solution, including the TNC companies, users and the City,” said Supervisor Aaron Peskin, who chairs the SF County Transportation Authority Board, which identified a $22 billion transportation revenue need over the next 27 years. “This requires strategic investment from all of us to prioritize solutions that get people out of their cars, onto public transportation and safely walking and biking."

In 2017, then-Board of Supervisors President Breed and Supervisor Peskin convened a task force to explore the potential for new transportation revenue measures in San Francisco, consisting of neighborhood organizations, advocacy groups, business and civil organizations, and public agencies. The task force issued its final report in 2017, which found that TNCs accounted for roughly 15% of intra-city trips, and an estimated 20-26% of vehicle trips Downtown during peak periods. It is estimated that on an average weekday, 6,500 TNC vehicles are on the street.

“San Francisco’s ability to move its people around safely in a growing economy is vital. But the city’s current transportation revenue streams can’t keep up with the demand,” said Assemblymember Phil Ting. “I’m glad to see Mayor Breed and Supervisor Peskin taking the next step spelled out in AB 1184 and asking voters to approve more funding for roads, bike lanes, public transit and other projects. I hope the lower rates for shared rides and EVs motivate consumers to use those options.”

Assemblymember Ting authored legislation last year that ensured San Francisco’s authority to implement a surcharge on rideshare trips with voter approval. Governor Brown signed AB 1184, which allows a higher tax rate for single-passenger rides and lower rates for shared rides and zero emission vehicles. The bill also allows the surcharge to be applied to autonomous vehicle rides when the technology becomes available.

Revenue from the measure would be split equally between transit improvement measures, such as improving bus and rail service frequency and reliability, and Vision Zero safety improvements, including pedestrian and bicyclist safety infrastructure and traffic calming measures.

Both Uber and Lyft are in support of the measure.