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Discussion Starter · #1 ·
Perhaps one of the more seasoned drivers can explain this to me as I'm new to this market.

What is the reason that drivers pay the sales tax out of fares? Is it not like when you go to a restaurant and the consumer pays the tax on whatever their bill is?

Shouldn't it be sales tax on top of the fare, paid by the consumer and collected by uber?

Sorry did a search and couldn't find this answered on here, although I'm sure it has been discussed.

Also, read an article that said that uber claims it pays more than its fair share of tax here in NY... I hope they are not referring to the tax that drivers pay out of our fares.
 

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Perhaps one of the more seasoned drivers can explain this to me as I'm new to this market.

What is the reason that drivers pay the sales tax out of fares? Is it not like when you go to a restaurant and the consumer pays the tax on whatever their bill is?

Shouldn't it be sales tax on top of the fare, paid by the consumer and collected by uber?

Sorry did a search and couldn't find this answered on here, although I'm sure it has been discussed.

Also, read an article that said that uber claims it pays more than its fair share of tax here in NY... I hope they are not referring to the tax that drivers pay out of our fares.
The pax is "suppose" to pay for sales tax but yet again Uber finds a way to stick it to its partners.
 

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So it's just like any other service where the consumer pays a tax on a product/service that he/she is consuming? Thought maybe it was some special NYC taxi law.

And this has just become acceptable?
It's Uber getting their way and then these other apps just follow suit.

It's acceptable because most drivers are uneducated and not united to really do something about it, not to mention Uber has the money to do whatever it wants.

It's like paying double tax.
 

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Discussion Starter · #5 ·
It's Uber getting their way and then these other apps just follow suit.

It's acceptable because most drivers are uneducated and not united to really do something about it, not to mention Uber has the money to do whatever it wants.

It's like paying double tax.
I wonder what Juno Official stance is on this? Seems that by also taking tax out of fare you are in essence passing a savings to the consumer on the backs of the drivers, and basically charging driver near 20% off the fares.

Does Ryan Price care to share what his organizations stance is on this?

NYTransit you wrote an article where you said UBER say they pay their fare share in taxes. You do realize that neither the passenger (consumer) nor Uber is paying this tax? Also, uber takes its commission on the entire fare (pre sales tax) while the driver pays for the tax+commission (both on a pre sales tax basis)
 

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It's Uber getting their way and then these other apps just follow suit.

It's acceptable because most drivers are uneducated and not united to really do something about it, not to mention Uber has the money to do whatever it wants.

It's like paying double tax.
I've wondered about this as well. I think Gett does in fact pass it on to the passengers. Albany doesn't care who pays the tax as long as someone is paying it. It will take someone or a group of drivers to take Uber and the other apps to court or maybe contacting the NY Attorney General.
 

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Driving yellow seems like a more rewarding experience. Paying uber and taxes a combined rate of almost 34% is like pissing in the wind. As your revenues go up, on any given day, your profit margin hardly goes up at all. At least in yellow if you go from a $225. day to a $325. your profit almost doubles. Your only extra expense is fuel. Assuming you lease on a daily basis.
 

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I wonder what Juno Official stance is on this? Seems that by also taking tax out of fare you are in essence passing a savings to the consumer on the backs of the drivers, and basically charging driver near 20% off the fares.

Does Ryan Price care to share what his organizations stance is on this?

NYTransit you wrote an article where you said UBER say they pay their fare share in taxes. You do realize that neither the passenger (consumer) nor Uber is paying this tax? Also, uber takes its commission on the entire fare (pre sales tax) while the driver pays for the tax+commission (both on a pre sales tax basis)
Juno Official has addressed it previously. While they are including the sales tax of the ride fare (base+mileage+time) in the total fare, Juno is currently billing the customer for sales tax which applies to tolls.

It's a step in the right direction.

I think this should be a top priority for Ryan Price and IDG. It would immediately put more money in the driver's pocket.

I've addressed the "double tax" issue a long time ago, but it never seemed to get much traction:

https://uberpeople.net/threads/uber-is-double-taxing-its-nyc-partners.13071/
 

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Juno Official has addressed it previously. While they are including the sales tax of the ride fare (base+mileage+time) in the total fare, Juno is currently billing the customer for sales tax which applies to tolls.

It's a step in the right direction.

I think this should be a top priority for Ryan Price and IDG. It would immediately put more money in the driver's pocket.

I've addressed the "double tax" issue a long time ago, but it never seemed to get much traction:

https://uberpeople.net/threads/uber-is-double-taxing-its-nyc-partners.13071/
I'm thinking a lawsuit that would make these companies return all the monies they have illegally taken from the drivers.
 

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Discussion Starter · #10 ·
Juno Official has addressed it previously. While they are including the sales tax of the ride fare (base+mileage+time) in the total fare, Juno is currently billing the customer for sales tax which applies to tolls.

It's a step in the right direction.
When a driver gives a ride, the fare is the compensation that the rider is paying the driver for the service. If your taking the sales tax out of the fare then your making the driver (service provider) pay for the riders (consumer) tax.

Also when you take a commission from the TOTAL FARE (which you are now saying includes tax) then you are taking a commission on tax. Not sure how your able to charge a commission on the governments money.
 

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When a driver gives a ride, the fare is the compensation that the rider is paying the driver for the service. If your taking the sales tax out of the fare then your making the driver (service provider) pay for the riders (consumer) tax.

Also when you take a commission from the TOTAL FARE (which you are now saying includes tax) then you are taking a commission on tax. Not sure how your able to charge a commission on the governments money.
I agree with you that the tax burden is put onto the driver; especially with all these rate cuts.......

In regards to charging a commission on the tax (and I believe tolls, but I'm not certain) - Uber is getting away with that by issuing a 1099k which makes them the equivalent of a credit card processor. Credit card processors charge a percentage of the entire sale; including sales tax, so uber is "legally" doing the same by issuing a 1099k.

It's dirty and low, but appears legal.
 

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Hi guys,

The sales tax for Juno is already included in the base fare and is then paid by the rider.

I hope that answers your questions!

Juno
I'll say it again, then why tell us that we are getting 1.75 a mile why not put what you are really paying the driver which is 1.59 a mile. Otherwise it's a blatant lie.

Uber/Juno on!
 

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I'll say it again, then why tell us that we are getting 1.75 a mile why not put what you are really paying the driver which is 1.59 a mile. Otherwise it's a blatant lie.

Uber/Juno on!
Hi Rustyshackelford,

When Juno is showing the base fare we are showing what Juno will be charging the rider, that is why the sales tax is included.

Since this sales tax is being charged to the rider, as it should be, it does not effect the drivers take home.

Juno
 

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Hi Rustyshackelford,

When Juno is showing the base fare we are showing what Juno will be charging the rider, that is why the sales tax is included.

Since this sales tax is being charged to the rider, as it should be, it does not effect the drivers take home.

Juno
Um no. That's just a cop out. When you buy a tv in bestbuy is the price advertised with the sales tax? Or the food you order off the menu. No it's not. It's whatever the price is. Then you should advertise it as 1.59 per mile (which is what you're paying the driver of you're deducting sales tax) plus tax. So the customer can get used to seeing sales tax on the invoice so if and when the rates do go up (doubtful) this issue will be moot. When you tell the driver the rate is 1.75 that should be the rate he is paid at. Minus commission and black car which is to our benefit.
Like I said you guys are no different than uber to this point. Assuming uneducated drivers won't question these things.
 

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Um no. That's just a cop out. When you buy a tv in bestbuy is the price advertised with the sales tax? Or the food you order off the menu. No it's not. It's whatever the price is. Then you should advertise it as 1.59 per mile (which is what you're paying the driver of you're deducting sales tax) plus tax. So the customer can get used to seeing sales tax on the invoice so if and when the rates do go up (doubtful) this issue will be moot. When you tell the driver the rate is 1.75 that should be the rate he is paid at. Minus commission and black car which is to our benefit.
Like I said you guys are no different than uber to this point. Assuming uneducated drivers won't question these things.
I have to completely agree with u. Snakes in the grass, just usung different wording.

Same crap different app.
 

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Personally, I think you guys are beating a dead horse.

I doubt highly that it would make any difference if the price was advertised pre or post sales tax. I've had so many customers ask me how the trip is calculated - it seems like they don't know nor do they care to know until they receive their receipt in the mail.

Here's an experiment - next time you have a passenger, ask them if they know what the per mile rate is. I'd be surprised if they knew.

In my opinion, we're better off fighting for an overall rate increase instead of fighting about how the rates are advertised.
 
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