Uber, Lyft fees could rise in Iowa with proposed sales tax

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DES MOINES, Iowa (KCCI) -- The cost of your Uber, Lyft and cab rides may increase thanks to state lawmakers.


Iowa lawmakers are considering a bill that would make the ride-sharing groups pay sales taxes for their services.

Republican Rep. Guy Vander Linden, who serves as chairman of the House Ways and Means Committee, said the bill is an issue of fairness.

“Right now, we tax limousine services but we don't tax taxis and Uber, and so in an effort to make things more equitable the initial thought was that's why we would begin to tax Uber and taxis,” Vander Linden said.

Uber spoke out against the proposal in a statement to KCCI. The statement said, in part, “This new bill would force Iowans to pay a tax on every trip they take and hurt the local men and women who rely on Uber to make extra income or get around town.

“We urge the Iowa legislature to keep ridesharing affordable and accessible to all by not passing this harmful tax on transportation services."

If the sales tax passes, Uber driver Addie Back said she hopes her passengers understand.

“I think the demand is always going to be there,” Back said.

The Uber sales tax is included in a much larger bill that cuts state income tax. The bill is still being debated at the Statehouse.

View the original story on KCCI's website.