The City imposes a Traffic Congestion Mitigation excise tax (effective January 1, 2020) of 1.5% to 3.25% on fares for rides originating in San Francisco that are facilitated by commercial ride-share companies or are provided by an autonomous vehicle or private transit services vehicle.
The Traffic Congestion Mitigation Tax only applies to rides facilitated by a commercial ride-share company, or provided by an autonomous vehicle or a private transit services vehicle. The tax is filed and paid monthly.
In general, the tax is calculated by applying the following percentages to the net rider fare attributable to the City.
- 3.25% for a ride other than a shared ride.
- 1.5% for a shared ride
- 1.5% for zero emission vehicle rides, which will apply to shared and unshared rides through December 31, 2024.
Commercial ride-share companies are required to file and pay the tax. Generally, commercial ride-share companies provide prearranged transportation services for compensation using an online-enabled application or platform or any offline method to connect passengers with drivers using a personal vehicle that is not a taxicab or limousine. This includes transportation network companies (TNCs), as defined by state law.
View a list of TNC permits issued by the state.
For rides in autonomous vehicles or private transit services vehicles that are not facilitated by a commercial ride-share company, mobility providers are required to file and pay the tax. A mobility provider is any person conducting or controlling a business that provides rides to fare-paying passengers using an autonomous vehicle or a private transit services vehicle, or both, and includes the owner or proprietor of such business.
The tax applies to the net rider fare, which means all charges for a ride, including charges based on time or distance and subscription fees and other indirect charges that are attributable to that ride. The net rider fare excludes any taxes, fees, and other charges imposed by governmental entities.
Proposition D was passed by San Francisco voters on November 5, 2019 and is effective on January 1, 2020. Proposition D imposes the Traffic Congestion Mitigation Tax. Subsequent legislation was passed to administer the tax.
The city controller estimates that the tax will generate $30 million to $35 million annually. Half of the revenue will go to the San Francisco Municipal Transportation Agency (MTA) to fund transportation improvements, including maintaining and expanding the Muni fleet, improving transit frequency and reliability, and increasing access to transit. The other half will go to the San Francisco County Transportation Authority to fund safety-related infrastructural improvements, including mid-block pedestrian crossings, bike lanes and bike boxes, and traffic calming measures.
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