Passage of AB 1184 first step to securing $30 million from TNC Impact Tax to fund transit operations & infrastructure
San Francisco - City leaders kicked-off Transit Week Monday with the news that Governor Brown has signed Assembly Bill 1184, the first step in securing critical funding for San Francisco transportation projects. This past July, Supervisor Aaron Peskin withdrew his Private Transportation Tax from the November ballot, after negotiating a deal with ride-share companies to pursue an alternate tax on TNC net ride revenue through state and local processes. The City's Chief Economist estimates the tax will generate $30 million annually, which would be dedicated to transportation infrastructure and operations. Assemblymember Phil Ting authored AB 1184 to affirm San Francisco's agreement with the private transportation industry to become the first city in California to levy a TNC impact tax.
"As San Francisco's economy grows, it must find ways to move people around safely. The Governor's signature on AB 1184 is an important first step to raise much-needed revenue that'll improve roads, bike lanes, public transit and other transportation projects," said Assemblymember Phil Ting (D-San Francisco.)
Supervisor Peskin co-chaired a six-month long Transportation Task Force 2045 (TTF2045) in his capacity as Chair of the San Francisco County Transportation Authority (SFCTA). The Task Force, comprised of a diverse cross-section of business, resident and advocate representatives, identified a $22 billion funding need over the next 27 years, without sustained local sources of funding to cover the need. One of the recommendations of the Task Force was to levy a TNC impact tax to mitigate the impacts of TNCs on congestion, declining public transit revenue and general wear-and-tear on City infrastructure. The negotiated agreement caps the proposed tax at 3.25 percent of net ride revenue for TNCs and driverless passenger vehicles, and 1.5 percent for shared rides. With the State-affirming legislation passed, the next step will be to put the TNC Impact Tax onto the November 2019 ballot.