Ting Bill Helping San Francisco Raise Revenues from TNCs to Fund Transportation Infrastructure Heads to the Governor

Friday, August 31, 2018

Ting Bill Helping San Francisco Raise Revenues from TNCs to Fund Transportation Infrastructure Heads to the GovernorSan Francisco could make significant investments to its transportation infrastructure under a proposal the state Legislature sent to the Governor today. AB 1184 by Assemblymember Phil Ting (D-San Francisco) affirms San Francisco’s authority to dedicate a tax on Transportation Network Company (TNC) rides to fund critical transportation projects. There is an estimated $22 billion funding gap to meet city and regional transportation needs through 2045.

“As San Francisco’s economy grows, the city must be able to move its people around safely - but current funding streams can’t keep up with the need,” said Ting. “AB 1184 will allow the city to raise the revenue it needs to help fund improvements to roads, bike lanes, public transit, and more, and demonstrates that the best solutions often arise when local leaders from both the public and private sector come up with a solution together.”

“TNCs are a critical part of our transportation system,” said Senator Scott Wiener (D-San Francisco), principal co-author of the legislation. “They expand people’s ability to get around without owning a car. AB 1184 helps ensure that TNCs participate in funding our overall transit system.”

“This bill gives San Franciscans the opportunity to provide additional resources to our underfunded transit system,” said Assemblymember David Chiu (D-San Francisco), a joint author of AB 1184. “TNCs have become a part of everyday mobility and it makes sense for them to help take on our transportation challenges.”

AB 1184 stems from an agreement reached last month between Supervisor Aaron Peskin and San Francisco-based ride-hailing companies, Uber and Lyft, to tax a percentage of net-rider fares. The money could only be used for transportation operations and infrastructure. The tax would be capped at 3.25% of net-rider fares. It drops to 1.5% for shared rides. The legislation leaves the door open for an even lower rate for rides in zero-emission vehicles.

“San Francisco is once again a national example of the progress we can make with strong state, local and private sector partnerships," said Supervisor Aaron Peskin, who has been working locally to secure sustainable funding sources for transportation. "AB 1184 affirms San Francisco's commitment to a compromise approach to funding critical transportation infrastructure, safety and operations improvements without another regressive tax. Voters have already overwhelmingly voted for a public expenditure plan that invests in Transit First infrastructure and prioritizes Vision Zero safety improvements - they just want to make sure that corporations are paying their fair share to help our city grow and keep it safe. I'm grateful for Assemblyman Ting's leadership on this bill and look forward to passing a local revenue measure in November 2019." 

Governor Brown has until the end of September to consider the bills that were sent to him in the remaining days of session. If AB 1184 is signed into law, San Francisco would proceed to seek voter approval for the ride-hail tax on the November 2019 ballot.

Media Contact: Nannette Miranda 415-557-2312