An effort to charge ride-sharing trips in Georgia a flat-fee tax rather than subject the trips to sales tax has gained momentum after a Senate committee added language doing so to an unrelated bill.
There is a sense of urgency by some in the General Assembly to get the new ride-sharing fee passed because companies such as Uber and Lyft will be required to collect and remit sales tax on each ride as of April 1, which would be more costly to consumers.
The flat-fee tax language would charge riders 50 cents a trip or 25 cents a pool ride.
The Senate Finance Committee on Thursday added the flat-fee tax language to House Bill 105, an unrelated bill that would exempt disaster relief aid from being subject to income tax. It voted in favor of advancing the bill.
In January, Gov. Brian Kemp signed House Bill 276, which requires sales and use taxes to be collected from retailers who coordinate the sale of products or provide services in the state. Ride-sharing companies, lodging websites and auction sites must collect and pay sales tax to the state under the law. It is effective April 1.
Georgia State University’s Fiscal Research Center estimated HB 276 could bring in $78.4 million in state revenue and $64.5 million in local government revenue in fiscal year 2021. Both estimates would change if ride-sharing companies charged a flat-fee tax per ride as opposed to sales tax.
“An 8.9 percent tax, as passed in HB 276, is one of the highest ride-share taxes in the country and will hurt those who rely on Lyft for rides to work, doctor’s appointments, and the grocery store, as well as an alternative to driving after drinking,” a Lyft spokeswoman told The Center Square earlier this month. “We are hopeful that Georgia’s Legislature will find a better solution for riders and drivers.”
