Philadelphia Mayor Cherelle Parker defends proposed tax on Uber, Lyft to help fund school district

Mayor Cherelle Parker on Wednesday defended her plan to tax ride-hailing services to help fund Philadelphia public schools.

During a press conference at City Hall, Parker said a proposed tax on rides booked through apps such as Uber and Lyft will raise $48 million in new recurring annual revenue for the school district. An additional $2.4 million per year will come from a change to the use and occupancy tax for cellphone towers, she said.

The school district previously said it's facing a $300 million budget deficit because of federal relief funds that have expired. 

Wednesday's announcement comes nearly a month after Parker first announced the proposed $1-per-ride tax on ride-hailing services in Philadelphia to fund the school district. 

The $1 fee would be five times the 20-cent-per-ride tax Parker initially proposed in her budget for fiscal year 2027 on March 12.

The mayor said last month the tax would raise about $48 million per year for the school district in fiscal year 2028 and $24 million for FY27. 

Without the additional funding, about 340 school-based jobs — teachers, counselors and climate staff — are at risk, Parker said Wednesday.

The district has seen higher attendance, rising test scores, improving graduation rates and lower dropout rates and that progress could be at risk without the new funding, according to Parker.

"This progress is not accidental. It's because of the people who are in our schools working with our children every day," Parker said. 

Adding a new revenue source would also signal to lawmakers in Harrisburg that Philadelphia is doing what it can to raise money for its schools, Parker said. 

The tax would take effect on Jan. 1, 2027, if it's approved by Philadelphia City Council.

In his remarks Wednesday, Superintendent Tony Watlington called Parker a "big city education mayor." 

Watlington said the district will still be making some cuts to the central office and taking a close look at all of its contracts, but he expects it will be "cutting less" than it would without this $50.4 million.

Uber recently launched a six-figure digital advertising campaign calling out Parker's proposed tax on ride-hailing services. The ads call on Philadelphians to voice opposition to the tax, claiming it would affect people already facing a high cost of living, senior citizens and people with mobility issues. Uber users also see a note in the app prompting them to click a link to learn more about the proposed tax.

In a statement released on Wednesday, Uber spokesperson Jasmin Kay said, "Everywhere in the world, rideshare taxes are consumer taxes paid by riders—raising prices, reducing demand, and ultimately lowering driver earnings—and the administration knows this, which is why their proposal explicitly requires the tax to be collected from passengers, not absorbed by companies. In a moment of real affordability strain, adding a new $1 fee on top of the existing 1.4% rideshare fee creates a regressive double tax that will limit access to work, school, and essential services, even as thousands of jurisdictions across the country choose not to tax rideshare at all."

A Lyft spokesperson said last month in a statement, "Philadelphia is already facing mounting cost-of-living and mobility challenges, and this proposal would intensify both by increasing the price of everyday rides that many working residents rely on to get where they need to go."

Parker addressed those prior comments directly. 

"Don't believe the ads that you see out there," she said.

She said the fee is not a tax on drivers, adding that the companies "have the option of absorbing" the fee. San Francisco, New York and dozens of states and local governments have already added similar taxes for rides on the apps, she said. 

City councilmembers are currently in budget negotiations and have until the end of June to finalize a budget.