This policy brief suggests alternatives for taxes on services regulated by New York City’s Taxi and Limousine Commission as a potential source of filling the $2.6 billion gap in the MTA's proposed 2015-2019 capital plan. These services encompass yellow taxicabs, liveries, community cars, and dispatch service providers, such as Uber and Lyft.
Riders now pay a flat 50-cent per-ride tax on yellow and green cab rides and an 8.875 percent sales tax on black car rides, which will generate an estimated $250 million in 2015 for New York State, New York City, and the MTA. If trips made by yellow taxicabs continue to decline, MTA revenues will also decrease—unless tax policies are changed. The CBC presents 3 options.