Councilmember Todd Proposes Tiered Tax For Rideshare
& Expansion of Homestead Tax Exemption
Washington, DC – Today, Councilmember Brandon Todd (D-Ward 4) introduced two bills that reduce the tax burden in DC and advance key policy priorities around transportation and housing.
The “Ride Share Tax Reduction Amendment Act of 2018” replaces the recently-passed flat tax on rideshare with a tiered tax. Under this proposal, the tax rate for shared or “pooled” rides would be reduced to 1%, while single rides would continue to be taxed at the 6% rate that Council approved in the Fiscal Year 2019 Budget Support Act. The proposal has the support of a number of notable organizations, such as the Federal City Council, the Coalition for Smarter Growth, Greater Greater Washington, the Washington Area Bicyclist Association, and 11 Business Improvement Districts. It follows similar tiered tax models instituted in New York and New Jersey.
“It is rare that Council has the opportunity to advance so many priories at once with a simple adjustment.” said Councilmember Todd. “I support taxing rideshare to fund the historic regional agreement on dedicated funding for Metro, however I was disappointed that Council’s budget did not make a distinction between shared rides and single rides. Shared rides are unique because they advance a constellation of critical policy priorities: affordable transportation options for those on a budget, lessened traffic congestion, and reduced auto emissions that contribute to climate change and impact regional air quality.”
Councilmember Todd also introduced the “Homestead Exemption Increase Amendment Act of 2018,” which increases the Homestead Exemption for residential properties owned by single families and cooperative housing associations from $73,350 to $125,000.
“This bill would decrease the taxable value of District homes, resulting in sizable savings for homeowners,” said Councilmember Todd. “These savings would prove extremely beneficial for families, first time home buyers, and senior citizens trying to keep up with the rising cost of living in the District.”