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D.C. raises taxes on alcohol and ride shares to help fund Metro

The taxes goes into effect on Oct. 1, 2018.

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Buying a six-pack and hailing an Uber or Lyft in D.C. will cost a bit more cash this fall. The D.C. City Council on Tuesday gave initial approval to a number of tax increases — including taxes on alcohol and ride-sharing services — in order to help fund the city’s $178.5 million annual commitment of dedicated funding for Metro, WAMU reports.

The new taxes go into effect on October 1, 2018. The city’s general sales tax will increase from 5.75 to 6 percent, alcohol bought at liquor stores will increase from 10 to 10.25 percent, and the tax on ride-hailing services will go up from the current 1 percent of gross receipts to 6 percent. That means passengers would pay an additional 60 cents for a $10 ride, according to WAMU.

“We raised the ridesharing fee to 6 percent, which is the general sales tax in the District of Columbia,” Council member and Metro Board chairman Jack Evans told WTOP. “Those are hard decisions to make. But we covered it. And Metro will be on the way, I hope, to being a better system.”