San Francisco, California, Proposition D, Ride-Share Business Tax to Fund Muni, Pedestrian, and Bicycle Services and Infrastructure (November 2019)

• Text of measure
  • Ballot question
• Path to the ballot
• See also
  • External links
  • Footnotes
• More
  • Local ballot measures
  • State ballot measures
  • Local politics

Proposition D: San Francisco Ride-Share Business Tax to Fund Muni, Pedestrian, and Bicycle Services and Infrastructure
The basics
Election date:
November 5, 2019
Status:
a Approved
Topic:
Local business tax Amount: 1.5%/3.25% Expires in: 25 years
Related articles
Local business tax on the ballot November 5, 2019 ballot measures in California San Francisco County, California ballot measures Local transportation on the ballot
See also
San Francisco, California 2019 San Francisco mayoral election 2019 San Francisco city elections

A measure to enact a tax on ride-share businesses to fund public transportation and pedestrian and bicycle infrastructure was on the ballot for voters in San Francisco, California, on November 5, 2019. It was approved.

A yes vote was a vote in favor of enacting a tax on ride-share companies, such as Uber and Lyft, at a rate of 1.5% of total fares on shared rides and rides in zero-emission vehicles and 3.25% of total fares on private rides, with revenue dedicated to improving and maintaining public transportation services and pedestrian and bicycle infrastructure.

A no vote was a vote against enacting a tax on ride-share companies such as Uber and Lyft, so that the city would continue to have no business tax on ride-share companies.

The city controller estimated an annual tax revenue increase of $30 to $35 million for the proposed Traffic Congestion Mitigation Fund. The tax went into effect January 1, 2020, and was designed to expire for electric vehicles in December 2024 and for all other vehicles in November 2045.

The measure required a two-thirds supermajority vote to pass.

Election results

San Francisco Proposition D
Result		Votes	Percentage
Yes		135,721	67.65%
No		64,896	32.35%

Results are officially certified.

Source

Text of measure

Ballot question

The ballot question was as follows:

“

Shall the City impose a 1.5% business tax on shared rides and a 3.25% business tax on private rides for fares charged by commercial ride-share and driverless-vehicle companies until November 5, 2045, raising an estimated $30-35 million annually, to fund improvements in Muni service and bicycle and pedestrian safety?

”

Ballot simplification digest

The following summary of the measure was prepared by the office of the Ballot Simplification Committee:

“	The Way It Is Now: The City does not impose a business tax on fares charged by commercial ride-share companies. Commercial ride-share companies provide passenger rides for a fare. These companies also arrange shared rides, and each passenger pays a separate fare. Typically, rides are requested using an online platform to connect drivers with passengers. Taxis and paratransit companies are not commercial ride-share companies. In the future, the State may authorize companies to charge passengers for rides in driverless vehicles. The San Francisco Municipal Transportation Agency (SFMTA) is a City agency that oversees the City’s transportation system, including Muni buses and trains, bicycles, traffic, parking and taxis. The San Francisco County Transportation Authority (SFCTA) is a County agency separate from the City that funds and plans transportation projects. The San Francisco Board of Supervisors serves as the governing board of the SFCTA. The Proposal: Starting Jan. 1, 2020, Proposition D would impose a business tax on commercial ride-share companies for fares generated by rides that start in San Francisco as follows: 1.5% on a shared-ride fare; and 3.25% on a private-ride fare. The same business tax would also apply to driverless-vehicle companies. The City would impose these taxes on fares charged by these companies until Nov. 5, 2045. Passenger rides in zero-emission vehicles would be subject to a 1.5% business tax until Dec. 31, 2024. The City would deposit the tax revenues (estimated at $30 million to $35 million annually) into a Traffic Congestion Mitigation Fund to spend for the following purposes: The SFMTA would receive roughly half of the revenues to improve Muni service and reliability, maintain and expand Muni vehicles and facilities, and improve Muni station access; and The SFCTA would receive roughly half of the revenues to improve pedestrian and bicycle safety. A 'YES' Vote Means: If you vote 'yes,' you want to impose a 1.5% business tax on shared rides and a 3.25% business tax on private rides for fares charged by commercial ride-share and driverless-vehicle companies to fund improvements in Muni service and bicycle and pedestrian safety. A 'NO' Vote Means: If you vote 'no,' you do not want to impose this business tax.	”
—Ballot Simplification Committee

Full text

The full text of the measure is available here.

Support

The San Francisco Board of Supervisors was listed as the primary proponent of the measure. It was proposed by San Francisco Board Supervisor Aaron Peskin and co-sponsored by San Francisco Mayor London Breed.

Supporters

• San Francisco Democratic Party

Arguments

• London Breed, San Francisco mayor, said, "By working collaboratively with the business community, our state leaders, and transportation advocates, we have come up with a tool that can mitigate congestion, fund public transportation and create safe streets for all."

Official arguments

The official argument for Proposition D was authored by San Francisco Mayor London Breed, San Francisco Supervisor Aaron Peskin, the San Francisco Labor Council, the San Francisco Chamber of Commerce, San Francisco Transit Riders, the San Francisco Bicycle Coalition, Walk San Francisco, and the California Alliance for Retired Americans.

“ San Francisco’s growing economy and population are having a major impact on traffic and congestion. This is hurting public transit and endangering pedestrians, bicyclists and motorists. It’s time to take action. Proposition D puts a small fee on Uber and Lyft so we can take big steps towards improving San Francisco’s transit, safety and environment. Prop D is a business tax levied on Uber, Lyft and similar ride-sharing services. It does NOT raise property taxes or sales taxes paid by everyday San Franciscans. Prop D WILL help us invest in our public transportation system, repair local streets, and improve safety to better handle the impacts new technologies and a growing economy have on our City. Proposition D will: Provide more Muni buses and trains. Provides critical funding for much-needed new Muni trains and buses. Hire more Muni drivers. Transit can’t move without drivers, and this proposition will allow us to hire more. Improve bike and pedestrian safety. Help accelerate creation of safer pedestrian crossings, traffic signals and bike lanes. Reduce traffic congestion. Allows more traffic control officers at critical intersections to keep transit and traffic moving. Improve transit for people with disabilities and the elderly. Expand options and service for those most in need. Encourage more share rides and zero-emission vehicles. Lower fees for share rides and zero-emission vehicles. With more traffic and congestion every day, we need a new approach to dealing with our transportation challenges. That’s why San Franciscans are coming together from every corner of the city to support this common sense measure. Please join us! Vote YES on Proposition D on November 5th. ”

Opposition

Opponents

• San Francisco Republican Party

Arguments

If you know of opponents or arguments that should be posted here, email editor@ballotpedia.org.

Official arguments

The San Francisco Republican Party authored the arguments against Proposition D.

“ Vote NO on Prop D Prop D's catchy title — 'traffic congestion mitigation' - sounds appealing . . . but it is DISHONEST. According to the our Controller: 50% of the collected tax will be spent to administer the tax Prop D is expected to have a negative effect on the City's economy, with the loss of about 200 jobs Zero evidence exists that Prop D will lessen traffic The future increased use of driverless vehicles has unknown effects, as some researchers think they may lead people to drive more Prop D will tax paid ride-share services like Uber and Lyft for your rides. And of course, those taxes will get passed on to you, increasing your costs. Did you notice the San Francisco Controller's note: HALF of the collected tax will go to administrative costs. Time to stop feeding bloated, unaccountable City government! NO on Prop D ”

Media editorial positions

See also: 2019 ballot measure media endorsements

Support

• San Francisco Chronicle: "Proposition D, a 3.25% tax on Uber and Lyft rides, is easily justified by the private companies’ considerable public burden on San Francisco’s streets, traffic and air. ... While the tax might not be noticeable enough to have a substantial impact on congestion, it promises tangible and appropriate public benefits."
• San Francisco Examiner: "Proposition D will impose a 1.5 percent tax on shared rides using ridehail services such as Uber and Lyft that originate in San Francisco and a 3.25 percent tax on unshared rides. ... Our only objection is that it should be much higher, given the role the two companies have played in growing traffic congestion in San Francisco."

Opposition

If you are aware of a media editorial board position in opposition to Proposition D, please email the editorial link to editor@ballotpedia.org.

Background

Assembly Bill 1184

In 2018, the California State Legislature passed Assembly Bill 1184, which confirmed San Francisco had the authority to impose a tax on ridesharing transactions that originated in the city. The tax applied to net rider fare, which excludes other taxes, airport or venue fees, or other fees.

Negotiations with Uber and Lyft

Board Supervisor Aaron Peskin originally proposed to tax ridesharing companies' gross receipts. After negotiating with Uber and Lyft, both headquartered in San Francisco, Peskin proposed the current measure, which taxes net fares. Uber and Lyft agreed not to oppose Proposition D. In his comments on the measure, Alex Randolph, Uber policy spokesman, said, "Uber is pleased to reach an agreement that will bring dedicated transportation funding to San Francisco. ... We appreciate the constructive and good faith negotiations with San Francisco lawmakers and we look forward to working with city and state officials to ensure a successful campaign in 2019."

Local and state rideshare tax rates

See also: Ridesharing

As of 2018, other large metropolitan cities across the U.S. had adopted similar taxes. In Washington, D.C., the tax rate was 6 percent. Chicago charged 67 cents per ride. New York enacted a state-wide tax of 8.875 percent, and New York City adopted an additional surcharge of $2.75 per trip.

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a unanimous vote of the San Francisco Board of Supervisors on July 23, 2019.

See also

Local measures

• Local measures in 2019
• Local business tax on the ballot
• Local transportation on the ballot
• San Francisco County measures

California

• November 5, 2019 measures in California
• Local ballot measures, California
• San Francisco, California

News and analysis

• State and local preemption conflicts
• Measures advancing national agendas

External links

Suggest a link

• Search Google News for this topic
• San Francisco Elections Office website