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Murphy Signs ‘Uber Tax’ Bill Into Law

Uber (Credit: Uber Inc.)

Uber (Credit: Uber Inc.)

Catching an Uber home from a night out of Jersey Shore revelry will soon cost a bit more.

Gov. Phil Murphy signed a bill imposing a tax on ridesharing services, including Uber and Lyft, on Monday after reaching a deal on the overall state budget. Murphy first conditionally vetoed the bill in order to raise the fee from 30 cents to 50 cents per ride. An earlier version of the bill in the state General Assembly had called for a 20 cent tax.

The bill mandates money from the tax go toward education by way of the Property Tax Relief Fund. It will be adjusted for inflation once every year using data from the state Division of Taxation.

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While the bill imposes a tax on rideshating services, it also alleviates pressure on companies like Uber and Lyft from local governments that want to place regulations on the services. Under the bill, counties and municipalities will be barred from creating their own fees, permits or licenses for ridesharing services. The only exception would be for cities that house an international airport and have existing special regulations for drivers.

The fee will be imposed on rides beginning and ending within New Jersey. The bill will become active the first day of the third month from passage – in this case, Oct. 1.

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