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Sales Tax?

Eugene73

Well-Known Member
looks like rideshare is now a service subject to sales tax that the buyer/pax must pay. no different than paying sales tax on a movie ticket or a candy bar
 

Michael - Cleveland

Well-Known Member
Moderator
looks like rideshare is now a service subject to sales tax that the buyer/pax must pay. no different than paying sales tax on a movie ticket or a candy bar
'cept a candy bar is non-taxable in Ohio. :smiles:
Taxi cabs have always had to charge sales tax... the state is claiming that TNCs should have been collecting and remitting all along - and the new bills (not yet signed into law) are going to reaffirm that.
 
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nouberipo

Well-Known Member
I noticed this week Uber started listing Sales Tax as one of the fees the rider pays. Did something change with tax laws? Why are they listing it now?
I saw that too. You don't think Uber is lying do you lmfao. At the same time I know there has been talk about it but I don't believe anything Uber does, writes, or says. Meanwhile here is a news piece about the potential sales tax on TNC in Ohio:

 

Michael - Cleveland

Well-Known Member
Moderator
It’s charged tithe rider anyways. So who cares.
"tithe", well now that's a great faux pax!
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I saw that too. You don't think Uber is lying do you lmfao. At the same time I know there has been talk about it but I don't believe anything Uber does, writes, or says. Meanwhile here is a news piece about the potential sales tax on TNC in Ohio:

and here's what the Ohio Senate is trying to do in going beyond what even the Ohio House did...
 
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Michael - Cleveland

Well-Known Member
Moderator
I noticed this week Uber started listing Sales Tax as one of the fees the rider pays. Did something change with tax laws? Why are they listing it now?
Uber has started charging the rider sales tax because they know they are going to lose their appeal of the $16 mil (or whatever) tax bill Ohio handed them for the prior year. Uber claims that TNCs are exempt from charging sales tax because Uber is only a 'tech company' operating an app that allows driver & riders to hook-up. Ohio doesn't see it that way and points to the fact that taxi cab companies have always charged riders sales tax - (even if the company was acting only as the dispatcher to private cab).

Soooo... Ohio got miffed that Uber was fighting it and started writing new laws that specifically hold the TNCs responsible for collecting and remitting sales tax on rideshare rides. And, just to get on Uber & Lyft's collective nerves, they are saying the the taxes are due retroactively because the law always said they were liable for the collection and remittance. Uber's usual 'out' is to claim that it's the drivers who charge the rider and therefore the drivers should collect and pay the sales tax... but for a change, the state is having none of that, and the new law as passed by the Ohio House specifically says drivers are not responsible for the collection and remittance of sales tax - the TNC's are.

And it gets even better... the Ohio Senate is taking this as an opportunity to reclassify some of the formerly exempted tech business as now being taxable. This is big $$ stuff at the state level... and if Ohio pushes the retroactive portion to collect from companies they say were liable all along, there are going to be appeals to the US Supreme Court claiming unfair burden.

Stay tuned - it's an interesting battle and isn't isolated to just Ohio.

(It will also be interesting to see if Uber tries to buy its way out of this. I doubt that Gov. Kasich could have been bought - I'm not so sure about Gov. DeWine)
 
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czervik7

Well-Known Member
Looks like Uber is trying to get all that sales tax money back. For the rides I did yesterday, Uber got at least half of the fares. I don’t remember any surge yesterday afternoon. They sure do get a lot of money for just matching cars with riders.
 

Michael - Cleveland

Well-Known Member
Moderator
That would be like me complaining that my doctor sure does get a fortune for just taking my temperature and weight.

We've been through this dance before, but who cares what Uber earns?
All I care about is whether I earn enough to make a profit and enough of a profit.
If Uber can make more money and be profitable, that's fine with me. As long as they're not taking money from me.
And if the rates or fares are so low that that's what it feels like, I can stop driving with them.

If anyone can find a company that will match me with as many rides for less than what Uber charges, or pays me more than what Uber pays me, please let me know.
 
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czervik7

Well-Known Member
That would be like me complaining that my doctor sure does get a fortune for just taking my temperature and weight.

We've been through this dance before, but who cares what Uber earns?
All I care about is whether I earn enough to make a profit and enough of a profit.
If Uber can make more money and be profitable, that's fine with me. As long as they're not taking money from me.
And if the rates or fares are so low that that's what it feels like, I can stop driving with them.

If anyone can find a company that will match me with as many rides for less than what Uber charges, or pays me more than what Uber pays me, please let me know.
You might care if riders don’t tip because they believe we’re getting 75% of the fare they pay. I know I care — and I let riders that ask about pay know what they’re doing.

Also, what do you think they’re going to do when they do raise fares, as they’ll soon have to? They’re going to take most or all the increase. You should care.
 

Michael - Cleveland

Well-Known Member
Moderator
You might care if riders don’t tip because they believe we’re getting 75% of the fare they pay. I know I care — and I let riders that ask about pay know what they’re doing.

Also, what do you think they’re going to do when they do raise fares, as they’ll soon have to? They’re going to take most or all the increase. You should care.
I hear you, I just don't think you understand what I said. I don't care what they take as a percentage of what the rider pays in total. What I care about is what I earn. If I'm being paid fairly and there's enough lucrative business then I'm happy. I have no complaint about a company being profitable in what they do unless they are stealing from me.

Now I'm sure you've read my many posts here over the years stating that my personal belief is that Uber and Lyft both built their brand and their valuation by getting drivers to donate their time and vehicles to the cause. I am no apologist for them.

I just think the complaints about how much Uber earns from fares is not logical - especially when no driver would ever consider giving a rider back 50% of the surge they were paid on a $100 fare that is normally $20.

IMO it's disingenuous and crocodile tears. <shrug>
 
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