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Milwaukee County supervisor wants special tax for Uber and Lyft rides

Posted at 9:08 PM, Oct 25, 2019
and last updated 2019-10-25 23:18:53-04

MILWAUKEE COUNTY — A Milwaukee County supervisor wants to tax your Uber and Lyft rides as a way to help solve the county's budget woes.

Supervisor Sylvia Ortiz-Velez said similar sized cities are making tens of millions of dollars a year off a ride-sharing tax, but to do it in Milwaukee would require a change in state law.

For the past five years, Uber and Lyft have become a staple of Milwaukee transportation. Studies show more than a third of Americans regularly use these types of ride services for convenience and cheap fares. Ortiz-Velez thinks it's time to add a tax. Some riders said go for it.

"I'd be alright with it, I think it would be totally fine," said Wyatt Wiskerchen.

"I'm indifferent, I would never know," said Brian Parker.

Others said no way.

"I wouldn't take Ubers then," said David Sykora. "I would just take the bus."

"I would want to know they're planning on using to spend it for," said Lauren Beedle.

"It could be a dedicated source for the county transit system," said Ortiz-Velez. "It also could help with the potholes in the city."

Ortiz-Velez said she recently heard of more than a dozen large cities and states across the country taxing ridesharing services and thinks it could help Milwaukee County.

"More and more I peel back the onion, the more interesting it is," she said.

Everywhere you look it's a different amount. Chicago taxes riders 67 cents a trip. In Rhode Island, it's 7-percent of the total fare. Ortiz-Velez thinks around 50 cents a ride would be reasonable in Milwaukee.

Added tax for Uber, Lyft rides across the country

"I use Uber and Lyft and I also ride the bus and I wouldn't notice 53 cents," she said.

But Ortiz-Velez said the proposal is about more than just money. She doesn't think it's fair that taxicab drivers have to pay additional user fees for their driver and vehicle license when Uber and Lyft drivers do not.

Ortiz-Velez claims Uber and Lyft have caused a significant decrease in transit ridership. The transit union that represents MCTS bus operators supports the plan.

She also believes there's been more wear and tear on the roads due to the amount of ride-hailing services.

"We're going to get a lot of road usage during the convention and if we don't enact this law before then, we're going to be the one stuck with the bill," she said.

Ortiz-Velez plans to propose this new tax in December. It would require approval from the state legislature.

TODAY'S TMJ4 reached out to Uber and Lyft for a comment on this proposal, but neither have gotten back to us.