[alextheboss]

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.

 

[alextheboss]

The pax is "suppose" to pay for sales tax but yet again Uber finds a way to stick it to its partners.

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?

 

[alextheboss]

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)

 

[alextheboss]

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.

 

[alextheboss]

Take not Juno Official most drivers do not like the practice of "including the tax" in the fare. It's very UberLike, if you want to be PRO driver as you say you do then do like 99.9% of businesses in NYC and add the sales tax to the total... For TRANSPARENCY sake

 

[alextheboss]

The sales tax is paid by the passenger at point of sale with all companies. However, the sales tax should still be abolished. It's absurd that Black Car drivers pay an 8.88% sales tax when taxi's only pay a 50 cent surcharge.

Please clarify your statement, on one sentence you state that the passenger pays the sales tax, and then on the other that the driver pays it.

I have been a rider and have never seen sales tax added to my bill, nor is there any mention of sales tax on the rider app.

I've been a driver and have seen the sales tax taken out of the total fare. Still haven't gotten a good explanation on how base+miles+time=fare+tax

 

[alextheboss]

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

Juno Official
Just checked your passenger app and base fare is $2.55. How does that cover the sales tax which is a percentage? Let's say the total fare comes out to $50, sales tax would be a least $4...

Also, if the tax is included in the fare as stated then how do you charge a ride from say Manhattan to New Jersey, this ride would not have sales tax yet the price you are charging the passenger includes a sales tax that doesn't apply. In this case it would seem you are collecting a tax from the passenger you weren't suppose to collect.

 

[alextheboss]

It's on the bottom of the receipt.

Sorry still can't find any mention of sales tax on receipt

 

[alextheboss]

Keep scrolling down.

That's the end of the receipt. Have you taken Uber as a rider? If so please show me your receipt where you are charged sales tax, none of my intra NYC trips show any tax.

 

[alextheboss]

Here's one from Juno, although Juno already stated that the tax was in the base fare somehow.

 

[alextheboss]

Don't get me wrong, it's shady that Uber buries it. But the passengers do pay it. It's a legal requirement.

I would love to see a passenger receipt showing where the passenger was charged the sales tax. I doubt you will find it since the passengers aren't the ones paying it. I just showed you my receipt from trips I have taken... I'm not going by hear say.

It's a legal requirement, and yet it's being taken out of the fare which is what this thread is all about.. How NYC drivers are paying for the sales tax from THEIR fares, instead of the passengers paying for that separately.

 

[alextheboss]

Even that receipt makes the point that taxes are taken out of the total fare... Base fare+time+distance is how we are paid, you can't calculate total fare and then reverse calculate tax based on those numbers that's just not how it works.

I'm not a tax professional so I'm not gonna make the argument on if tax should be charged on a black car ride or not. All I'm saying is consumer is responsible for paying sales tax, seller is responsible for collecting it. In this case TNCs are collecting it from the service provider (drivers) not the consumer.

 

[alextheboss]

I think uber I mean drivers guild and Juno should comment on this. If sales tax is included in the fare why do we get paid more when we drop off in jersey. That proves we are paying for sales tax. Because when we drop off out of state. We still get the 1.75 without sales tax deducted. Good catch Alex.

Either we (drivers) are paying sales tax or they are charging passenger a sales tax (example NYC to nj) that they weren't supposed to.

But can't have it both ways... If it's in the "fare" then what's the base+milage+time rate for non tax trips...

 

[alextheboss]

Just so that we are clear on what I'm saying Ryan Price

Current Tax collection

Uber min fare $8.00
Passenger pays $8.00

Driver gets $8.00-8.875%[tax]-2.44%[fund]-25%[uber)= $5.12

Tax collection everywhere except NYC rideshare

Uber min fare $8.00
Passenger pays $8.00+8.875[tax]= $8.70
Driver $8.00-2.44%[fund]-25%[uber)= $5.80

 

[alextheboss]

The drivers pay the sales tax.

The riders receipt shows a break-down as if the rider paid the sales tax.

The sales tax comes out of the drivers total. i.e. 20% commission, plus 8.875% sales tax, plus 2.75% BCF (or whatever the % is)

There are no ifs or buts about this. All these people including Juno Official and Ryan Price are either total idiots or too smart to believe they can lie through it. I don't get it. Why do y'all have to lie? It doesn't even make sense.

It's actually shocking to hear these two parties who are supposedly on drivers side take this position which is as clear as day.

 

[alextheboss]

Hello,

Rest assured riders pay the base fare - which includes the sales tax.
This is currently the industry standard and that is why we implemented the tax this way.
We have discussed this internally and it has been noted as one of the more important questions we've heard from drivers.
We will return to this at a later date but unfortunately we are still a bit too young to change the market standards.

Juno

Juno Official Your base fare is $2.55, how do you account for when the sales tax is more than the base fare?

NYC to NJ trips don't require a sales tax, how do you account for such trips? Are you still charging customers sales tax (bases fare) in these instances?

The fact that it's an industry standard (I.e. Uber did this in NYC and everyone followed) in not a good excuse in my opinion.

Everyone doing the wrong thing doesn't make it right..

 

[alextheboss]

Saying that the sales tax is included in the fare and paid by the passenger is like my employer saying that my income tax is included in my wage and is paid by them. This argument is comical.

The receipts that are being presented use the same tax calculation as income tax where the tax is taken out of the total payment made to the employee.... In these cases the employer can't say that they paid for the tax. Smh

 

[alextheboss]

I'd stick with the point you made about out of state trips........

I'm pretty sure there's nothing illegal about including the tax into the fare cost.

Gas stations include all taxes when they advertise their prices - unless they have some sort of exemption, uber should be legally able to do the same.

The problem with that is that your claiming that your paying the drivers more than you are. Tax is not compensation... You can't say I earn $1.75/mile when part of that $1.75 is tax, it over inflates what drivers earn.

Also gas stations is a special case because they deal with other taxes. This is a NYC only issue, no other drivers are getting sales tax deducted from their fares..

 

[alextheboss]

I'm pretty sure there's nothing illegal about including the tax into the fare cost.

You do realize that saying he tax is included into fare is just a way of taking 8.8% from money that you earned.

If it is included then what would the breakdown be? How much of the base fare is tax? How much of the milage rate and time is sales tax?

Sorry, but as a driver I shouldn't be paying for tax that the rider should pay under the guise that "it's included".

 

[alextheboss]

I respectfully disagree, because they are just advertising a fare.

Where do they claim that drivers make $1.75 per mile? It might be assumed by someone, but that would just be an incorrect assumption.

Whenever Uber advertises driver earnings, they advertise Gross. Gross includes ubers commission and sales tax