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Massachusetts first state to tax Uber and Lyft

Staff Writer | August 22, 2016
Governor Charlie Baker signed into law a 20-cent tax per trip on Uber and Lyft rides in Massachusetts.
Governor Charlie Baker
Taxi hailing   Riders and drivers will not see the extra fee
Some of the revenue collected going to the traditional taxi industry. Riders and drivers will not see the extra fee, as the law explicitly bars companies from passing on the tax to them.

Ride-hail companies like Uber and Lyft will be paying the per-trip subsidy to the state. The total tax is 20 cents, with 5 cents designated for taxis, 10 cents going to cities and towns, and the final 5 cents designated for a state transportation fund.

How that money will be specifically portioned out to the traditional taxi industry has yet to be worked out.

The portion of the new tax that’s allocated for the traditional taxi industry is intended to help pay for “new technologies and advanced service, safety and operational capabilities,” according to Reuters.