KPFA 2024 Election Coverage

San Francisco Proposition L: Transportation Network Companies and Autonomous Vehicle Businesses Tax

Public transportation systems all over the Bay Area face cuts ranging from deep to catastrophic if they don’t receive commitments for new sources of revenue within the next year or two. Federal funding helped keep public transit afloat when ridership crashed during the COVID 19 pandemic. But those federal funds are about to disappear. In San Francisco, public transit supporters have put Proposition L on next month’s ballot . It would tax Uber, Lyft, Waymo and other rideshare companies to make up some of the impending deficit. Aileen Alfandary for KPFA News in San Francisco reports on San Francisco’s Fund the Bus campaign:

Along San Francisco’s Market Street, a long time city resident, who prefers not to give his name, is waiting for the bus: “i don’t drive, i’m 80, is very important, without it, a lot of walking…”

According to an analysis by the San Francisco Controller, Proposition L on the November ballot would raise about 25 million dollars a year to help fund San Francisco’s public transit system, known as MUNI. Prop L would tax the revenue generated by San Francisco rides on Uber, Lyft, Wamo and other so called transportation network companies. The added tax would only offset about ten percent of the pending MUNI deficit. But Proposition L campaign volunteer Cardell Morgan says that would be enough to save up to 10 bus lines from elimination.

The COVID 19 pandemic decimated ridership and budgets for public transit across the Bay Area and the country. The federal government stepped in to keep public transit afloat. But those federal pandemic dollars are ending. MUNI has regained more riders proportionately than BART, but Muni ridership is still about 26% lower than before the pandemic. Muni says revenues are down by 275 million dollars due to fewer riders and fewer dollars generated by parking fees. 

Morgan and the Yes on L , Fund the bus Campaign say other cities around the country already tax Uber and Lyft rides at a higher rate than San Francisco would even with approval of Proposition L.

John Whitehurst is a political consultant and spokesperson for the No on L campaign. He says MUNI needs reform and accountability and San Francisco can’t afford an additional tax on Uber and Lyft rides.

There’s a wrinkle in the campaign for Proposition L, which Whitehurst mentioned –Proposition M. It’s a ballot measure that would change San Francisco’s business tax structure. Even if the proposal to tax Uber and Lyft gets the 50% plus one needed for passage, it could still fail – because if Prop M wins by more votes, it will cancel out Proposition L . The Fund the Bus campaign says it’s neutral on the Proposition M business tax measure. But it is recommending people don’t vote on M at all, to avoid it winning with more votes than Prop L.

According to the latest figures from the San Francisco Ethics Commission, Uber has contributed 750 thousand dollars to the campaign against Proposition L, Lyft”s tally is 128 thousand. Altogether the No Campaign has outraised Prop L supporters by a 3-1 margin. 

Meanwhile, MUNI continues to be a transportation workhorse, with an average of more than half a million rides a day. Anna Orellan is one of those riders. She says she doesn’t have a car and relies on the bus.

Public transit advocates are planning to put a Bay Area wide bond proposal to fund public transit on the ballot in 2026. Prop L supporters say their measure is needed to help bridge the gap in San francisco in the meantime.

11 out of 12 San Francisco Supervisors support Proposition L. So do State Senator Scott Weiner, Mayor London Breed , the San Francisco Chronicle and, Senior and Disability Action . Opponents include, besides Uber & Lyft, the Golden Gate Restaurant Association and the California Nightlife Association.