The Baltimore City Council Budget and Appropriations Committee favorably recommended a 13-cent increase per ride for passengers hiring ride services.
The city says the tax will bring in an extra $2 million in revenue a year.
Bob Cenname, Baltimore’s budget director, told the committee that the excise tax increase is an attempt to freeze or even lower property taxes as part of the city’s 10-year plan.
“The real focus was, ‘How can we get some reduction in the property tax rate and actual real relief to people in property taxes?’” he said. “that's why we chose some of the smaller fines and fees, like this one, because we we're trying for to look for ways to kind of keep pace on revenue.”
Baltimore already imposes a 25-cent tax on all hired rides in the city. That tax brings in about $3.8 million to the city.
Many other cities across the U.S. have excise taxes on hired rides.
Chicago, for instance, imposes a $1.50 tax on ride shares. Washington D.C. has a 6% tax on all ride share trips.
The bill still needs the full approval of the council and the mayor. If passed, it will go into effect 120 days after it’s signed into law.
The bill comes as Waymo, the self-driving ride service, is testing cars in the city and plans to open the service up in the near future.