Ride Sharing Services May See New Price Hike Thanks to Increased Sales Tax
Can you afford to spend more on your Lyft or Uber ride? If you’re a resident of New Jersey, you might not have a choice beginning next year. A new tax increase proposed by New Jersey governor Phil Murphy would raise the tax on ride-sharing services by introducing a new 7% tax on these types of services. In his $37.4 billion budget proposal, Gov. Murphy also proposes a new tax on Airbnb rentals and electronic cigarettes.
While a spokesperson for Gov. Murphy stated in an interview that “[the state’s representatives] are committed to ensuring that Lyft remains an affordable option for New Jersey,” many are criticizing the new tax as exploitation of low-income individuals. Many consider ride-sharing services to be a more affordable option than owning a family car. Those who cannot afford auto loans or vehicle down payments depend upon these services for transportation to and from school or work, especially in rural areas of the state.
“Many think of rideshare services like Uber and Lyft as a luxury – in fact, in many cases they’re the opposite,” writes Carlos Medina, chairman of the Statewide Hispanic Chamber of Commerce of New Jersey.
Many families and low-income individuals depend upon ride-sharing services like Uber and Lyft because they believe that they simply cannot receive an affordable auto loan due to prior financial mistakes or a low credit score. However, there are other options for getting behind the wheel of the car that you need. Car dealerships offering buy here, pay here in Philadelphia, PA can allow drivers to take advantage of the dealer’s line of credit to get their hands on the keys of a high-quality and affordable vehicle.
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