Uber, Lyft in talks with Juneau officials over city sales tax

Uber and Lyft ridesharing is unavailable in Juneau.
Uber and Lyft ride-hailing recently came online in Juneau. (Photo illustration by Jeremy Hsieh/KTOO)

Efforts are ongoing to collect sales tax from ride-hailing companies Uber and Lyft that are now operating in Juneau.

Alaska state law narrowly defines how local governments can regulate transportation network companies, or TNCs.

Cities are legally able to collect sales tax, city attorney Amy Mead said.

“What we’re hoping for is that the TNCs will work with us to figure out some process so that the sales tax can be paid,” she said. “So that they can ensure that the drivers are properly registered and they can facilitate enforcing our code.”

Representatives from Uber and Lyft confirmed Tuesday that the companies are in talks with city officials.

“We have been communicating regularly with Juneau city officials in an effort to find a tax collection solution that works for all parties involved,” Uber’s Alaska representative David Williams said in a statement. “We look forward to addressing this issue collaboratively.”

Finance Director Bob Bartholomew said the city taxes the gross fare, which includes the company’s commission. How exactly the companies and drivers split the tax burden isn’t the city’s responsibility.

“We don’t know how they are working it mechanically, that’s what they have to work out and we have to understand how it’s working,” Bartholomew said. “But either the companies work with us or the burden falls solely to the driver.”

Local sales taxes have been contentious for both companies in other municipalities.

The New York Times reported that a lawsuit in New York filed by a drivers group last year alleged that Uber was forcing the drivers to pay its share of the sales tax, which the drivers said amounted to wage theft.

The newspaper said internal documents it examined pointed to millions of dollars in lost revenue for New York drivers.

Uber has since vowed repay the drivers and correct the practice.

Jacob Resneck, CoastAlaska

Jacob Resneck is CoastAlaska's regional news director based in Juneau. CoastAlaska is our partner in Southeast Alaska. KTOO collaborates with partners across the state to cover important news and to share stories with our audiences.

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