One of the points of debate over Uber’s operations in New York is whether its trips should contribute the same 50-cent surcharge to the MTA that yellow and green taxis do. It’s an easy question to answer in some ways: It doesn’t matter whether a car is yellow, green, or black — if some for-hire vehicles have to pay an MTA fee, they all should. But as long as this taxi surcharge is in the public eye, there’s also an opportunity to rethink the fee itself and make it smarter.
Ideally, the surcharge paid by yellow taxis, Uber, and other for-hire services would be higher in the congested Manhattan core than in outer-borough neighborhoods lacking decent transit service. While that wouldn’t be a substitute for real congestion pricing of all motor vehicle trips, it could set a precedent and demonstrate the impact of congestion-based fees on a substantial portion of Manhattan traffic.
Here’s the way things are set up today: A 50-cent surcharge on all green and yellow taxi trips will generate an estimated $87 million for the MTA this year, according to the Citizens Budget Commission. Black cars, including Uber and Lyft, are subject to a sales tax that isn’t paid by metered taxis. A sliver of that — slightly more than one-third of one percent — will generate an estimated $7 million for the MTA this year.
Because of this imbalance, Uber’s growth is poised to eat into MTA funding. CBC projects the MTA will actually lose revenue as Uber trips grow and taxi trips continue to decline.
Mayor Bill de Blasio spoke about the problem on WNYC’s Brian Lehrer Show last week. “We also have to support the MTA, which is in the interest of all of us, and that happens right now through a certain number of taxis, but it doesn’t happen through Uber, for example,” he said.
The fee could also be restructured in a way that addresses problems beyond the MTA’s coffers.