ALBANY - A new tax on Uber and Lyft rides would generate funds for mass-transit systems, roads and bridges if state Assembly Democrats have their way.
The Democrat-led Assembly last week proposed a $1 fee on each trip arranged through a ride-hailing app, such as Uber or Lyft.
In much of Manhattan, the fee would be higher: $2.75 per trip.
The fee was included in the Assembly's $170 billion state budget proposal as a way to raise money for regional transit systems and the state's fund for highway and bridge repairs.
All told, Assembly Democrats estimate it would generate $48 million for the highway fund and transit systems outside New York City.
But the proposal drew strong pushback from Uber, which claimed the fee would push New York's taxes on ride-hailing apps to a nationwide high.
Whether it's ultimately implemented will depend on budget negotiations over the next two weeks with Gov. Andrew Cuomo and the Republican-led Senate ahead of the state's new fiscal year, which begins April 1.
Mike Whyland, a spokesman for Assembly Speaker Carl Heastie, D-Bronx, said the "bottom line" is upstate has "many transit needs."
"These companies need safe roads and bridges to transport their customers and this proposal drives much needed funding to support those needs," Whyland said of the ride-hailing companies.
The Assembly's proposal calls for the money to be split among the state's Highway and Bridge Trust Fund and public-transit agencies like the Metropolitan Transportation Authority or the Rochester-Genesee Regional Transportation Authority, depending on where the trip originated.
Currently, ride-hailing trips in the state outside New York City carry a 4 percent "assessment fee," which goes into the state's general fund. There's another 2.5 percent fee to cover workers' compensation costs for drivers
In New York City, the rides are subject to state and city sales tax.
The Assembly's proposal would add the new fee of $1 on top of the 4 percent tax. Rides in Manhattan below 96th Street would be subject to the higher $2.75 fee.
Uber claims the $1 fee would amount to an estimated 8 percent tax on the average ride upstate.
The 4 percent tax would be added on top, pushing the total tax to 12 percent on an average ride, according to the company.
Alix Anfang, a spokeswoman for Uber, noted that upstate communities have only had access to ride-hailing apps for eight months, which is when the Legislature approved them to begin outside New York City.
"The new combined ride-sharing taxes would be the highest in the country, and yet another new tax for already overtaxed upstate New Yorkers," Anfang said in a statement.
The new fee proposal may face a tough road to reality.
Senate Republicans often rail against implementing new taxes and fees.
The fee was not included as part of the GOP budget plan, which was also released last week.
Scott Reif, a spokesman for the Senate GOP, said the conference doesn't "support raising taxes."
"Rather than ask hardworking families to pay more, we’re focused on delivering a budget that protects taxpayers and makes New York a more affordable state to live and to work," Reif said.
Cuomo, a Democrat, also did not include the fee in his budget proposal, which was unveiled in January.
The state's budget — which will likely total around $165 billion when finally approved — will be negotiated by the three sides over the next two weeks.
JCampbell1@Gannett.com