NYC/NYS sales tax

8689 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.

61 - 80 of 83 Posts

LGC

· #61 · Jul 18, 2016

JDJ said:
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.

There isn't sales tax on Livery trips.

I'm pretty sure they also don't pay into BCF.

It should only be 25% commission.

alextheboss

Discussion Starter · #62 · Jul 18, 2016

LGC said:
There isn't sales tax on Livery trips.

I'm pretty sure they also don't pay into BCF.

It should only be 25% commission.

Well if there isn't sales tax on livery shouldn't they have different rates if in fact the rates include sales tax

Uberman8263

· #63 · Jul 18, 2016

Manhmptn said:
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.

Sad but true.

LGC

· #64 · Jul 18, 2016

alextheboss said:
Well if there isn't sales tax on livery shouldn't they have different rates if in fact the rates include sales tax

Yes - that is correct.

LGC

· #65 · Jul 18, 2016

Manhmptn said:
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.

You're absolutely right!

Specifically because 15-20 years ago, there wasn't sales tax charged on FHV trips.

The law only passed in 2009.

JDJ

· #66 · Jul 19, 2016

LGC said:
There isn't sales tax on Livery trips.

I'm pretty sure they also don't pay into BCF.

It should only be 25% commission.

It doesn't show them that they are paying BCF or sales tax but they probably still are through uber fee
They are not paying 25% its a little over 35% if you do the math.
on a minimum fare my estimated payout is $5.58 & it shows the fare minus BCF, Sales Tax & Uber Fee
On the livery guy's estimated payout on a minimum fare is $5.17 it only shows the Fare ($8.00) minus
Uber fee (-$2.83). A New black car driver minimum estimated payout is $5.18.

alextheboss

Discussion Starter · #67 · Jul 19, 2016

JDJ said:
It doesn't show them that they are paying BCF or sales tax but they probably still are through uber fee
They are not paying 25% its a little over 35% if you do the math.
on a minimum fare my estimated payout is $5.58 & it shows the fare minus BCF, Sales Tax & Uber Fee
On the livery guy's estimated payout on a minimum fare is $5.17 it only shows the Fare ($8.00) minus
Uber fee (-$2.83). A New black car driver minimum estimated payout is $5.18.

How can this be if the passenger pays the sales tax, and not the driver??? Lol

sssteven

· #68 · Jul 21, 2016

At least juno add tax on tolls to the pax not us

If we are being charged sales tax really need to change.

alextheboss

Discussion Starter · #69 · Jul 21, 2016

sssteven said:
At least juno add tax on tolls to the pax not us
If we are being charged sales tax really need to change.

From the people that brought you

"The tip is included in the fare"

comes the newest hit:

"The sales tax is included in the fare"

Reactions: 3

alextheboss

Discussion Starter · #70 · Jul 21, 2016

So moving the conversation on a different route:

Uber allows cars that are affiliated with a 'Livery base' now. I've read that the sales tax and BCF don't apply to Livery cars.

If one affiliates his car with a Livery base will they not have the sales tax+BCF as a deduction taken from fares, therefore only having a 20-25% deduction of fares?

Do Juno/Lyft accept Livery cars?

JDJ

· #71 · Jul 22, 2016

alextheboss said:
So moving the conversation on a different route:

Uber allows cars that are affiliated with a 'Livery base' now. I've read that the sales tax and BCF don't apply to Livery cars.

If one affiliates his car with a Livery base will they not have the sales tax+BCF as a deduction taken from fares, therefore only having a 20-25% deduction of fares?

Do Juno/Lyft accept Livery cars?

Uber fee for livery base cars is about 36%
& I only think Uber is accepting livery cars I may be wrong about that.

John Yoo

· #72 · Oct 16, 2016

I dont see sales tax anymore.

Lenny_yellow_cab

· #73 · Oct 16, 2016

John Yoo said:
I dont see sales tax anymore.

Can u elaborate a bit

John Yoo

· #74 · Oct 16, 2016

2

Same week.

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JustDre

· #75 · Oct 16, 2016

Legally who ever collects the money is suppose to pay the tax

John_in_NY

· #76 · Oct 22, 2016

There is a difference between sales tax and income tax.

I understand that UBER sends drivers a 1099 at the end of the year. Here, you will pay taxes based on your earnings. So those decent pay weeks or months become even less.

Sales tax, I remember getting a post card form NY State back in, gosh, 2008 or so??? It informed me that livery companies would start collecting the 8+% sales tax. I simply went out and got taxi plates at a local village.
Sales tax is paid buy the consumer and should not be charged to the driver. Remember, when doing your yearly taxes, most can claim sales taxes on everything they purchased for the tax year. You'd be surprised how much that adds up to.

Because of many loopholes, like getting taxi plates and collecting "0" in sales tax while performing the same task, job or service, the sales tax should be abolished.

It sucks seeing taxis with "all airports" posted in the rear windows, performing the same work as liveries, yet not collecting any sales tax (not NYC). The tax causes the taxi rates to seems more affordable, by at least 8%.

A flat tax on ALL for hire vehicles including taxis should be collected when registering the vehicle at the DMV. $1,000, $2000??? Who knows. Perhaps, take the $$$$$24 million (wow) (2009 figures) the tax generates and divide it by the number of for hire vehicles registered in the state.

Or, better yet, New York officials should get their act together and just stop wasting money.

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eagle88

· #77 · Oct 26, 2016

I noticed that Uber doesn't charge sales tax on trips to NJ, they only deduct Uber fee and black car fund. but Lyft deducts sales tax from NJ trips. has it always been this way? Lyft should stop charging sales tax from trips that ends outside NY.

ShiftySheik

· #78 · Oct 26, 2016

eagle88 said:
I noticed that Uber doesn't charge sales tax on trips to NJ, they only deduct Uber fee and black car fund. but Lyft deducts sales tax from NJ trips. has it always been this way? Lyft should stop charging sales tax from trips that ends outside NY.

You're right. Lyft pockets the sales tax on non-taxable interstate trips. Uber, Juno and Gett let the driver keep it. Lyft gets away with it because they don't itemize sales tax on driver statements.

Reactions: 1

eagle88

· #79 · Oct 26, 2016

ShiftySheik said:
You're right. Lyft pockets the sales tax on non-taxable interstate trips. Uber, Juno and Gett let the driver keep it. Lyft gets away with it because they don't itemize sales tax on driver statements.

Lyft is very sneaky, I think if we all email them they might stop doing that, if they are faced with a class action lawsuit they will be required to payback all the tax money they have pocketed on interstate trips.

Reactions: 1

Rustyshackelford

· #80 · Oct 26, 2016

eagle88 said:
Lyft is very sneaky, I think if we all email them they might stop doing that, if they are faced with a class action lawsuit they will be required to payback all the tax money they have pocketed on interstate trips.

Nope. They are quite smart. They just say that is their commission and they take care of sales tax. So when there is no sales tax, They get a little more.

Reactions: 3

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