Rideshare, delivery taxes at center of Philadelphia’s $7B budget negotiations

PHILADELPHIA - Philadelphia City Council members are expected to meet again at 9:00 a.m. Thursday to continue budget talks, with several of Mayor Cherelle Parker’s proposed tax increases still unresolved, according to city leaders.

City council faces tough choices on tax proposals

What we know:

The main points of contention are the proposed $1 tax on rideshare trips, a 25 cent delivery tax on non-essential goods and taxes on hotels and short-term rentals. Councilmembers say these measures are intended to fund the school district, road repairs and support for the homeless.

Mayor Parker’s rideshare tax would direct funds to the School District of Philadelphia, which city leaders say faces a major deficit and possible staffing cuts. The delivery tax is aimed at supporting road crews to fix potholes. The hotel and short-term rental tax, including platforms like Airbnb, appears to be off the table for now due to a lack of support from state lawmakers, according to a source at City Hall.

Council President Kenyatta Johnson signaled a decision is near, saying, "see you tomorrow morning." The Committee of the Whole, which includes all 17 council members, recessed until Thursday at 9:00 a.m.

Councilmember Curtis Jones Jr. said, "no matter how 10 toes down people sound there’s always room for negotiations." He added, "What is at issue is the approval of rideshare and Amazon type deliveries what is at issue is the hotel tax and others."

Councilmember Nina Ahmad expressed hope for consensus, saying, "i’m just hopeful we can all come together to some thing we can all agree on, but we put what’s important in front of us. We don’t want our children to suffer and we don’t want our constituents burdens with more taxes."

Councilmembers say all options are being considered to fund the fiscal year 2027 budget.

Local perspective:

Some Philadelphia residents and workers shared mixed feelings about the proposed taxes. Damla Turhan said, "this isn’t really a drivable city necessarily we just took the trolley today but on a night out or anything if we have a night that we can go out we’ll take an Uber."

Abby Gilger said, "if they help the people that’s what we would want to be part of as well, but with the economy, the way that it is, it’s getting sort of tough to put that on the average person right now."

Clarissa Lawson said, "at first I wasn’t thrilled about them. I don’t think anyone would be, but as long as they go to the right things, I’m not opposed to it." She added, "if these potholes get fixed, I will pay anything for these potholes to get fixed in this city. Honestly, they’re so bad."

Councilmember Jones Jr. said, "we’re either going to vote it up or vote it down tomorrow." Councilmember Ahmad said, "we’ll wrap it up. We have to do it."

Mayor Parker’s budget proposals are designed to address funding gaps in education, homelessness support and city infrastructure. The debate over how to pay for these priorities has centered on new taxes that would impact rideshare users, delivery services, hotels and short-term rentals.

Councilmembers have emphasized the need to balance funding essential services without placing undue burden on residents.

What we don't know:

It is not yet clear which, if any, of the proposed tax increases will be included in the final budget when council votes Thursday morning. The final details of the fiscal year 2027 budget remain undecided as negotiations continue.

Philadelphia City CouncilNews