NYC/NYS sales tax

8717 Views 82 Replies 20 Participants Last post by K.O.N.Y, Feb 24, 2017

alextheboss

Discussion Starter · Jul 12, 2016

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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alextheboss

Discussion Starter · #41 · Jul 14, 2016

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

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Uber Driver 007

· #42 · Jul 15, 2016

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.

Reactions: 1

alextheboss

Discussion Starter · #43 · Jul 15, 2016

Uber Driver 007 said:
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.

Reactions: 1

Juno Official

· #44 · Jul 15, 2016

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

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

alextheboss

Discussion Starter · #45 · Jul 15, 2016

Juno Official said:
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..

Reactions: 2

LGC

· #46 · Jul 15, 2016

Rustyshackelford said:
That's Google not a uber receipt. Alextheboss made a good point. If sales tax is included should we get paid less than the regular rate when we drop off in jersey. There is no sales tax. Got em

Rusty, the receipt in the app makes no mention of the sales tax......

You need to look at the emailed receipt (which is the one Ryan Price posted in order to see the tax breakdown).

great point made about out of state trips!

I just hope they don't drop rates on out of state trips now.

alextheboss

Discussion Starter · #47 · Jul 15, 2016

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

LGC

· #48 · Jul 15, 2016

alextheboss said:
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

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.

alextheboss

Discussion Starter · #49 · Jul 15, 2016

LGC said:
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..

Reactions: 1

alextheboss

Discussion Starter · #50 · Jul 15, 2016

LGC said:
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".

LGC

· #51 · Jul 15, 2016

alextheboss said:
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..

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.

I just think it's a poor argument........

On the other hand, your out of state argument is a great argument to pursue.

LGC

· #52 · Jul 15, 2016

alextheboss said:
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".

I do realize it..... I hate it.

But, hating it doesn't mean it's illegal.

The calculation is done like this:

Total fare / 1.11315 = Pre-tax fare

Pre-tax fare * 8.875% = sales tax

Pre-tax fare * 2.44% = black car fund

Total fare * uber commission % = uber commission

Net to driver = total fare - sales tax - black car fund - uber commission

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Reactions: 1

alextheboss

Discussion Starter · #53 · Jul 15, 2016

LGC said:
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

Ryan Price

· #54 · Jul 18, 2016

alextheboss said:
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

Have you ever bought $2 pizza? That $2 included the sales tax, it was just built into the price. Uber, and apparently Juno, are doing the same thing.

Ryan Price

· #55 · Jul 18, 2016

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

The IDG's position is against the sales tax. Full stop.

Saying that the driver pays the sales tax is just inaccurate, that's not how sales taxes work. However, we're on the same side so it doesn't really matter.

LGC

· #56 · Jul 18, 2016

Ryan Price said:
Have you ever bought $2 pizza? That $2 included the sales tax, it was just built into the price. Uber, and apparently Juno, are doing the same thing.

I agree.

But- if you ship that $2 pizza to jersey, it's now less then $2 because you don't need to pay the NY sales tax.

The argument is - if uber is really charging the passengers the sales tax, why isn't that reflected in an interstate trip?

They charge the customer the same rate for intrastate and interstate.

The interstate trip should be less because sales tax is not collected on interstate trips.

That argument could be used to say that uber is charging the drivers and not the passengers........

Although - I'm sure if it went to court, uber would say that they didn't cheat the drivers......

They were cheating the passengers.

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Reactions: 1

Uberman8263

· #57 · Jul 18, 2016

LGC said:
I agree.

But- if you ship that $2 pizza to jersey, it's now less then $2 because you don't need to pay the NY sales tax.

The argument is - if uber is really charging the passengers the sales tax, why isn't that reflected in an interstate trip?

They charge the customer the same rate for intrastate and interstate.

The interstate trip should be less because sales tax is not collected on interstate trips.

That argument could be used to say that uber is charging the drivers and not the passengers........

Although - I'm sure if it went to court, uber would say that they didn't cheat the drivers......

They were cheating the passengers.

If you ship a slice of pizza to NJ it will be cold when it arrives. Why not order a slice from up the block?

Reactions: 1

LGC

· #58 · Jul 18, 2016

Uberman8263 said:
If you ship a slice of pizza to NJ it will be cold when it arrives. Why not order a slice from up the block?

Because those slices weren't fingerprinted and background checked properly.

Reactions: 4

JDJ

· #59 · Jul 18, 2016

Its all a scam, if you look at livery drivers that now do uber while the car is affiliated with a livery base. Their uber fee is about 35% im guessing that is with sales tax included.
Because on their trip details all you see is
Fare - Uber fee you dont see a sales tax being mentioned anywhere on their trip details.

Meanwhile on ours we see the
Fare - uber fee - sales tax - black car fund

It shows us that we are being charged the sales tax meanwhile it shows them that they arent being charged a sales tax but are paying a higher uber fee.

Manhmptn

· #60 · Jul 18, 2016

15-20 years ago no driver gave a chit about the sales tax or tolls. Everybody used to make decent earnings back then. What a crap, drivers counting pennies nowadays.

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