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  • 08.22.16

Ride-sharing services in Massachusetts will be taxed to compensate taxis

Republican Governor Charlie Baker signed the law into effect this month that will see a 20 cent fee added to every ride-sharing trip, Reuters reports. Five cents from that fee will go directly to taxi companies to compensate them for the competition, 10 cents will go to cities and towns the ride sharers operate in, and the final 5 cents will go to a state transportation fund. The fees are expected to raise millions of dollars every year from services like Lyft and Uber and will help taxi businesses to adopt “new technologies and advanced service, safety, and operational capabilities,” the law says. One other interesting note: The 20 cent fee will not be added to a user’s ride cost as the law bars ride-sharing companies from passing the costs on to customers. The ride sharers themselves will need to pay the per trip fee out of their own profits.MG