13 20-0494 Subject: Transportation Network Companies Trip Tax Ballot Measure
From: Council President Kaplan
Recommendation: Adopt A Resolution On The City Council's Own Motion Submitting To The Voters At The General Municipal Election On November 3, 2020, A Proposed Ordinance To Impose A General Tax On Users Of Transportation Network Companies At A Rate Of 50 Cents For Private Trips And 25 Cents For Pool Trips; And Directing The City Clerk To Take Any And All Actions Necessary Under Law To Prepare For And Conduct The November 3, 2020 General Municipal Election
We are encouraged and excited to see the City of Oakland take a leadership role in working to mitigate the impacts of Transportation Network Companies. A tax could be a good way to ensure the City is receiving benefits from the negative impacts TNCs have been having on its infrastructure and environment. However, TransForm is concerned about the speed at which this item is moving. The City and its stakeholders need time to consider the potential impacts of such a tax, including the disproportionate impact on low income riders and drivers. As a flat tax, equity impacts must be thought through. We are also concerned about a potential legal challenge from the TNCs, and question the City's ability to pay for an extended legal battle to protect the law, should it pass at the ballot. If we support a measure, we want it to survive and have its intended impact. It is also concerning that this money would be sent to the general fund, with no specifics about how this money could be spent. We do see a path forward that could be precedent-setting and impactful, but delaying the vote is necessary for developing the best plan possible.
Please delay this vote in order to provide some more time to ensure this measure has the best possible outcome, and is most likely to pass.
I support delaying all action on Agenda Item 13: Transportation Network Companies Trip Tax Ballot Measure, until a collaborative stakeholder engagement process occurs. Having a collaborative process with key stakeholders is essential to determine the overall goal of the tax, how the tax should be structured, what exemptions might be included, and where the funds raised from the tax should be allocated.
Over taxation and regulation kills Oakland business and jobs!
Why is Oakland still wasting millions on special interests while facing a record $122 million budget deficit?
Kelly Obranowicz, Transportation Policy Manager, Bay Area Council
over 4 years ago
The Bay Area Council requests that City Council delay taking action on Agenda Item 13: Transportation Network Companies Trip Tax Ballot Measure until a collaborative stakeholder engagement process occurs. Having a collaborative process with key stakeholders is essential to determine the overall goal of the tax, how the tax should be structured, what exemptions might be included, and where the funds raised from the tax should be allocated. In the midst of the current global pandemic, the community at large, and in particular many essential workers, are relying on TNC services more than ever to protect their health and get to their destinations in a timely manner given the large reductions in transit operations we are currently seeing. Now is not the time to impose a financial burden on this community, especially a burden which may prevent disadvantaged communities from safely traveling to their essential jobs. Any tax ultimately imposed should also be dedicated to viable transportation solutions given the major impact COVID-19 is having on our transit systems. Until the City Council engages in a collaborative stakeholder engagement process taking into consideration the impacts of the COVID-19 pandemic, the Bay Area Council respectfully requests the Council delay taking any action on the Transportation Network Companies Trip Tax Ballot Measure.
Why tax an already difficult business which so much overhead and unexpected expenses when trying to provide a clean and genial service while trying to make enough to live on? This is more like a leech parasite (Oakland) sucking the living off a host (businesses)! Stop it!
The following comment is truncated due to space limitations...the full comment has been emailed to all City Council members:
A $.50 tax on TNC rides is a regressive tax that will most negatively impact those with low incomes, including people with disabilities and people of color. Fifty cents per ride can be a lot of money to those who struggle economically, and a new Oakland TNC tax would be in addition to a recent statewide TNC customer fee imposed via CA's TNC Access For All Act (aka SB 1376), a fee that could very well increase in the future. Many low-income people with disabilities rely heavily on TNCs for mobility, especially during this COVID-19 pandemic that has negatively impacted public transit as an option.
The negative impacts of a new TNC tax need to be more thoroughly and carefully considered, and they need to be considered by more stakeholders, including the low-income TNC customers in Oakland who will be most impacted. As stated above, TheCIL is not necessarily opposed to municipal taxes on TNC service. We do, however, feel that such a regressive tax is quite significant, that it should be very carefully considered, that Oakland's community stakeholders should have ample opportunity to participate in such deliberation, that there should be specific parameters on how the revenue will be spent, and that the revenue should be spent on efforts to improve transportation and mobility for Oaklanders, including disabled Oaklanders.
We are encouraged and excited to see the City of Oakland take a leadership role in working to mitigate the impacts of Transportation Network Companies. A tax could be a good way to ensure the City is receiving benefits from the negative impacts TNCs have been having on its infrastructure and environment. However, TransForm is concerned about the speed at which this item is moving. The City and its stakeholders need time to consider the potential impacts of such a tax, including the disproportionate impact on low income riders and drivers. As a flat tax, equity impacts must be thought through. We are also concerned about a potential legal challenge from the TNCs, and question the City's ability to pay for an extended legal battle to protect the law, should it pass at the ballot. If we support a measure, we want it to survive and have its intended impact. It is also concerning that this money would be sent to the general fund, with no specifics about how this money could be spent. We do see a path forward that could be precedent-setting and impactful, but delaying the vote is necessary for developing the best plan possible.
Please delay this vote in order to provide some more time to ensure this measure has the best possible outcome, and is most likely to pass.
I support delaying all action on Agenda Item 13: Transportation Network Companies Trip Tax Ballot Measure, until a collaborative stakeholder engagement process occurs. Having a collaborative process with key stakeholders is essential to determine the overall goal of the tax, how the tax should be structured, what exemptions might be included, and where the funds raised from the tax should be allocated.
Over taxation and regulation kills Oakland business and jobs!
Why is Oakland still wasting millions on special interests while facing a record $122 million budget deficit?
The Bay Area Council requests that City Council delay taking action on Agenda Item 13: Transportation Network Companies Trip Tax Ballot Measure until a collaborative stakeholder engagement process occurs. Having a collaborative process with key stakeholders is essential to determine the overall goal of the tax, how the tax should be structured, what exemptions might be included, and where the funds raised from the tax should be allocated. In the midst of the current global pandemic, the community at large, and in particular many essential workers, are relying on TNC services more than ever to protect their health and get to their destinations in a timely manner given the large reductions in transit operations we are currently seeing. Now is not the time to impose a financial burden on this community, especially a burden which may prevent disadvantaged communities from safely traveling to their essential jobs. Any tax ultimately imposed should also be dedicated to viable transportation solutions given the major impact COVID-19 is having on our transit systems. Until the City Council engages in a collaborative stakeholder engagement process taking into consideration the impacts of the COVID-19 pandemic, the Bay Area Council respectfully requests the Council delay taking any action on the Transportation Network Companies Trip Tax Ballot Measure.
Why tax an already difficult business which so much overhead and unexpected expenses when trying to provide a clean and genial service while trying to make enough to live on? This is more like a leech parasite (Oakland) sucking the living off a host (businesses)! Stop it!
The following comment is truncated due to space limitations...the full comment has been emailed to all City Council members:
A $.50 tax on TNC rides is a regressive tax that will most negatively impact those with low incomes, including people with disabilities and people of color. Fifty cents per ride can be a lot of money to those who struggle economically, and a new Oakland TNC tax would be in addition to a recent statewide TNC customer fee imposed via CA's TNC Access For All Act (aka SB 1376), a fee that could very well increase in the future. Many low-income people with disabilities rely heavily on TNCs for mobility, especially during this COVID-19 pandemic that has negatively impacted public transit as an option.
The negative impacts of a new TNC tax need to be more thoroughly and carefully considered, and they need to be considered by more stakeholders, including the low-income TNC customers in Oakland who will be most impacted. As stated above, TheCIL is not necessarily opposed to municipal taxes on TNC service. We do, however, feel that such a regressive tax is quite significant, that it should be very carefully considered, that Oakland's community stakeholders should have ample opportunity to participate in such deliberation, that there should be specific parameters on how the revenue will be spent, and that the revenue should be spent on efforts to improve transportation and mobility for Oaklanders, including disabled Oaklanders.