Chicago Congestion Tax begins January 1
The City of Chicago is implementing a Congestion Tax on ride-shares beginning on January 1, 2020. The purpose of this tax is to raise revenue to improve transit services AND to relieve gridlock in a newly created Downtown Zone (see map below).
Gridlock: The congestion tax is not a straight on money grab by the city
I’ve lived in the Loop for more than twenty years and I’ve never seen congestion – virtual gridlock – as bad as in the last few years. This has been caused by people using ride-share in place of public transit. In order to relieve gridlock the city is incentivizing people to ride public transit by increasing the cost of ride-shares. If you do choose ride-share they are also incentivizing you to use pooled ride-shares. If you choose to ride solo you will have to pay up for contributing to traffic congestion and gridlock. The revenues raised will be used to improve public transit.
Current tax on Uber’s and Lyft
Currently, all Uber and Lyft trips are charged the same total tax rate of $0.72, regardless of where the trip starts – downtown, southside, westside etc.; whether it’s a private or shared trip; and whether it’s taking place during rush hour or 3 a.m.
New decrease in tax on Uber Pool and Lyft Line rides outside of downtown zone 10% decrease
- The total tax on Uber Pool or Lyft Line trips in the neighborhoods would decrease from $0.72 to $0.65, a seven-cent discount and a 10 percent decrease.
New tax on Uber and Lyft Solo rides outside of downtown zone 74% increase
- The total tax on a private ride in the neighborhoods would increase from $0.72 to $1.25, a 53-cent or 74 percent increase.
New tax on Uber Pool and Lyft Line rides downtown zone 74% increase
- The total tax on an Uber Pool or Lyft Line to or from downtown during peak hours (6 a.m. to 10 p.m. on weekdays) would increase from $0.72 to $1.25, a 53-cent or 74 percent increase.
New tax on Uber and Lyft Solo rides downtown zone 317 percent increase
- The total tax on a private downtown ride during peak hours would increase from $0.72 to $3.00, a $2.28 or 317 percent increase.
It costs $2.25-$2.50 to ride the CTA/A monthly pass for unlimited rides is $105
The bus costs $2.25 and the L $2.50. Add an additional 25 cents for a transfer. How much are you spending a month on ride-shares? People think that ride-shares are “only $5 when the bus is $2.25” um that’s more than double. Can you really afford it? Look at your credit card bill for a month and see what you spent on Ubers. Ouch!