Overview
A man entering a Lyft ride-hail vehicle. Photo credit: Sergio Ruiz

Photo: Sergio Ruiz

Introduction

In November 2019, San Francisco voters approved a tax on rides provided by commercial ride-hail companies (e.g. Uber, Lyft), private transit services, and autonomous vehicles to support transit and safer streets. The TNC Tax was expected to generate about $30 million annually, before the COVID-19 pandemic. The Controller's Office now estimates revenue to be $15 million for Fiscal Year (FY) 2020/21. Half of the revenue goes to the SFMTA for transit improvements. The Transportation Authority administers the other half of the funds for street safety improvements. Revenue collection began on January 1, 2020.

The tax imposes a 3.25% surcharge on all individual rides and a 1.5% surcharge on shared rides that originate in San Francisco. Trips are taxed for the portion of the ride that happens in San Francisco. Rides in electric vehicles will be taxed at 1.5% for five years, regardless of whether they are individual or shared, in order to encourage adoption of electric vehicles. Future autonomous vehicle Transportation Network Company services will also be subject to the tax. The tax will be in effect for 25 years.

Eligible Transportation Improvements

The Transportation Authority can fund capital improvements that promote safety. Projects may include: 

  • Pedestrian safety 
  • Bicycle safety
  • Traffic calming
  • Traffic signal upgrades and re-timing 
  • Maintenance of existing safety infrastructure  

On October 27, 2020, the Transportation Authority Board adopted the TNC Tax Program Guidelines, allocated $2.5 million in existing collections to the SFMTA's FY21 Vision Zero Quick-Build program, and programmed the first $5 million in FY 2020/21 collections to the SFMTA's FY22 Vision Zero Quick-Build program. More details are available in the TNC Tax Program Guidelines and the materials for the October 27, 2020 Board meeting, both linked below. 

TNC Tax Program Guidelines (PDF)

October 27, 2020 Board Meeting Materials

TNC Tax Allocation Request Procedures (PDF)

TNC Tax Ordinance (PDF)

TNC Tax Ballot Information (PDF)

Contact

funding@sfcta.org

Kaley Lyons, Transportation Planner