Mayor Parker wants to add a $1-per-ride tax to all rideshares in Philly to help fund the city’s financially struggling school district

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Mayor Cherelle Parker is proposing a $1 tax on rideshare services like Uber and Lyft in the city to generate money for the School District of Philadelphia, which is facing a $300 million budget deficit.

It’s a fivefold increase from her original proposal of a 20-cent per-trip tax. If approved, it would go into effect Jan. 1, 2027, and generate $24 million in fiscal year 2027, according to a press release. By 2028, $48 million in recurring funding would be generated.

“If we don’t do this, our students will lose teachers, school climate staff, principals, assistant principals and other key school staff,” Parker said during Monday’s announcement at Delaplaine McDaniel School in the city’s Point Breeze neighborhood.

Less than two weeks ago, the school district proposed $225 million in budget cuts to go into effect next school year. This would eliminate 220 building substitute positions and reassign 340 school-based roles. Parker said this would cause an increase in overall class sizes.

“If you look at the major difference between schools in the city of Philadelphia and you compare us to schools in the suburbs or on the Main Line, one of the first things you observe is smaller class sizes when you get to the suburbs and other wealthier communities,” Parker said. “That’s not a risk that we’re willing to take.”

Parker defended her plan by suggesting companies, not drivers, should shoulder the cost.

“Those companies, they can make a decision about whether or not they pass this cost onto those hardworking folks,” Parker said. “Guess what they can do? They can decide to pay the tax and not pass it on to their employees. How about that?”

Parker’s proposal is far from guaranteed. It still needs City Council approval and has already faced opposition from rideshare companies.

In a statement, a Lyft spokesperson said, “Philadelphia is already facing mounting cost-of-living and mobility challenges. This proposal would intensify both by increasing the price of everyday rides that many working residents rely on to get where they need to go.”

A spokesperson for Uber said, “The 5x hike of the Mayor’s proposed rideshare tax will hurt drivers and hit everyday Philadelphians, making rides less affordable and threatening critical access to jobs, healthcare, and essential services.”

Parker compared the rideshare tax proposal to the city’s soda tax, where money goes toward funding for pre-K schools and renovating parks, recreation centers and libraries — generating about $75 million a year in revenue, according to officials.

“On Friday, I was in Southwest Philadelphia at a place called Kingsessing Recreation Center. It is now a $35 million new campus with a new rec center and a new library, and when you drive by it, you think you’re on the Main Line, but you’re actually in Philadelphia,” Parker said. “Talk about making those tough decisions. I remembered the fight, and it was very uncomfortable.”

Revenue from the rideshare tax would also be used to provide free SEPTA passes for eligible school district employees. The proposal would also launch a three-year pilot program with the Philadelphia Parking Authority to help eligible residents pay parking tickets. Residents could receive grants to pay outstanding balances and get their late fees waived.