Attorney General Asked To Investigate Phoenix Tax Increase On Uber, Lyft At Sky Harbor

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PHOENIX – A day after the Phoenix City Council approved a massive tax increase on ride-sharing services, like Uber and Lyft, an Arizona lawmaker called on the Attorney General to investigate the legality of the proposed increase.

The Phoenix City Council voted on Wednesday in a 7-2 vote to increase the tax from $2.66 per pickup to $4 starting January 1.

Representative Nancy Barto filed a SB1487 complaint with the Arizona Attorney General’s Office on Thursday. The SB1487 complaint filed by Representative Barto prompts the Attorney General to investigate alleged violations of the Arizona Constitution or state law.

According to the Goldwater Institute, “In 2018, Arizona voters overwhelmingly passed Prop 126, which prohibits cities from adding or increasing any new tax or fee on services provided in Arizona. Under Prop 126, both the addition of a new drop-off fee at Sky Harbor and the increase in the fee to be picked up there, are impermissible.”

Officials with ridesharing companies, Uber and Lyft contacted officials with the City of Phoenix to advise them that if a tax increase were to be approved by the City Council, the company would be forced to no longer offer services to and from Phoenix Sky Harbor Airport effective January 2020.

Related article: Uber To Cancel Service At Sky Harbor Should Phoenix City Council Pass $5 Tax

 

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