Taxing New Mobility Services: What's Right? What's Next?

Taxing New Mobility Services: What's Right? What's Next?

As more states and cities consider taxes on TNC services, policymakers should be cautious and thoughtful about how their decisions affect transportation behavior. As services like TNCs proliferate around the globe, it is important to understand what these fees are, what purpose they intend to serve, and how they fit into broader metropolitan transportation policies.

Key findings

If policymakers are fixated on reducing congestion, they should focus on actions that reduce SOVs—regardless of whether that trip is in a personal or TNC vehicle.

If the goal is to generate revenue for transit agencies, per-trip TNC fees are likely not sufficient replacements for the yawning budget gaps they are facing.

Policymakers might be better served viewing TNCs as now-established presences that should be better integrated into holistic transportation networks and missions.

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