(The Center Square) – Uber says proposed transportation taxes moving through the General Assembly could raise costs for riders and drivers, even as lawmakers look to generate new funding for transit projects across the Commonwealth.
It also raised the question of safety for those out partying, and accessibility to appointments for those with medical concerns.
“As Virginia residents continue to struggle with high cost of living, efforts to impose new taxes and fees on rideshare and delivery services are unwise,” Uber said in a statement. “While we share legislative leadership’s goal of funding transportation and lowering costs for Virginians, these proposals will likely have the opposite effect.”
The comments come as lawmakers consider a pair of bills that would add new taxes and fees to rideshare trips and retail deliveries as part of a broader transportation funding package.
House Bill 1179, introduced by Del. Kathy Tran, D-Fairfax, and Senate Bill 638, introduced by Sen. Adam Ebbin, D-Alexandria, contain matching language that would change how transportation revenue is collected and distributed statewide and within certain regions.
According to fiscal impact statements prepared by the Department of Planning and Budget, the legislation would generate an estimated $585.8 million in fiscal year 2027 and $639.5 million in fiscal year 2028 through a combination of statewide and regional taxes and fees.
Under the proposals, retail deliveries would be subject to a 50-cent statewide fee, while fares charged by transportation network companies, including rideshare services such as Uber, would face a 4.3% statewide tax.
Additional taxes would apply only within designated transportation districts, including parts of Northern Virginia and localities served by the Potomac and Rappahannock Transportation Commission. Those regional charges include local sales taxes, parking taxes and highway use fees and would not apply statewide.
Revenue generated under the bills would be directed primarily to the Commonwealth Mass Transit Fund and regional transportation authorities to support transit operations, capital projects and long-term transportation planning.
Uber said it supports efforts to fund transportation but warned the added costs could reduce access for people who rely on rideshare services for work, medical appointments and other essential trips. The company also pointed to research linking increased rideshare availability with lower rates of drunk driving fatalities nationwide.
The bills remain under consideration as lawmakers continue transportation and budget discussions during the 2026 General Assembly session.
If approved, the proposals would add new taxes and fees tied to everyday transportation and delivery services used by Virginians across the Commonwealth.
