New Approach! North Carolina Approves 1.5% Ride Tax on All Uber and Cab Trips, Including Canceled Ones

New Approach! North Carolina Approves 1.5% Ride Tax on All Uber and Cab Trips, Including Canceled Ones

The North Carolina Revenue Department has launched a new initiative to raise funds in the state. Private transportation companies like Uber or city taxis will charge a transport tax that goes directly to the Department of Transportation (NCDOT). Rates will depend on the trip being made; if it is an exclusive trip or with chosen companions, 1.5% will be applied.

On the other hand, if the trip is shared, only 1% will apply. The need to improve road infrastructure will be met by a charge on conventional taxi rides or through mobility applications.

Uber

Few people today have not heard of Uber. Founded in March 2009 by Travis Kalanick and Garrett Camp, is an American company that has been able to refocus the way we move in cities. It is a company that provides mobility as its main service. It operates in more than 900 metropolitan areas around the world, although its headquarters are in San Francisco.

Uber was born with the aim of supplying those moments when a private transport is needed, but there are no taxis available. With a much cheaper price, Uber drivers are private individuals who put their vehicle at the service of customers, offering them a private transport, and in many cases, personalized. The company has diversified into subsidiaries such as UberEats, Drizzly, Postmates, Careem and Uber Freight LLC.

More and more drivers are working independently for Uber, offering their services through the platform of the company. With questionnaires prior to customer pick-up, they offer personalized services such as the type of music that sounds in the car, whether they prefer silence, if they want conversation or not, presence of chargers, water bottles, and even cases where some snack food is offered.

North Carolina Department of Transportation (NCDOT)

It is the department responsible for maintaining the state roads in good condition for circulation, also managing public transport, and being responsible for implementing infrastructure projects. How is it financed? With the taxes that citizens pay, the tax on gasoline, and from now on, with the new tax on transport trade. It also has federal funds to help keep roads safe and other infrastructure projects moving forward.

What are the new tax collection measures?

The new Department of Transportation (NCDOT) measure came into effect on 1 July. Through it, both transport platforms and Uber, as well as taxi users, will have to pay an additional surcharge on their trips. This measure has been implemented due to the increasing tendency of users to do and that of this type of transport.

In this way, it is intended to raise funds that will go directly to improve the quality of state roads, bike lanes and any other infrastructure related to the mobility of citizens. The Department of State Revenue clarified that this was a fee calculated on the gross revenue of the service price (whether or not it is complete). Two types of fare have been established depending on the journey to be made:

  • 1.5% for private journeys or where an accompanying person is chosen.
  • 1% if you opt for a shared trip with other unknown passengers.

Whether or not the journey is completed will be irrelevant when applying these new charges. Payment will be made at the time the passenger is mounted on the vehicle, so the rest will depend on the passenger and driver.

All these benefits will go directly to the North Carolina Department of Transportation (NCDOT), with the aim of improving infrastructure and mobility in the state of North Carolina. Are you a private transport user? What do you think about this new measure?

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