Burlington Hikes Rideshare Fee, Keeps Meals Tax Higher

Burlington City Hall Credit: File: Alicia Freese ©️ Seven Days

Burlington city councilors on Monday voted to increase a fee on rideshare passengers and keep a higher tax on alcohol and meals in place as they continue to search for revenue to fund persistent budget gaps.

The rideshare hike will change the amount passengers pay when they’re picked up or dropped off within city limits. Since 2016, the city has collected 25 cents per ride, but councilors voted to double that to 50 cents. That’s in line with cities such as Portland, Maine.

In fiscal year 2024, the city raised $100,791 from about 420,000 rides on platforms such as Uber and Lyft, meaning the new fees would collect about double that. Rides starting or ending at Burlington International Airport, which is actually in South Burlington, are subject to a $2 fee.

Councilors also voted to keep the city meals and alcohol tax at 2.5 percent until next July. That’s half a percent more than it was last year, when councilors first voted to increase the tax to help fill a budget gap. Unless there are further changes, the tax will revert to 2 percent on July 1, 2026.

Before the vote, several councilors described discomfort with continuing the increase.

“Gross receipts is a valuable tool for this city, for its budget,” Councilor Buddy Singh (D-South District) said. “But we have to find ways to grow it, not by increasing it, but by increasing the economic vitality of this city.”

Councilor Melo Grant (P-Central District), though, noted that something had to be done after two years of multimillion-dollar budget gaps. She described the increase as a way to avoid raising property taxes on city residents.

“This is a consumption tax,” Grant said. “Businesses should not be absorbing this tax. They should be passing it on. And, most likely next year, when we get to looking at this, we will probably still have to keep it. I don’t think we should pretend.”

Ultimately, only Councilor Becca Brown McKnight (D-Ward 6) voted against the measure.

“I don’t see the point in continuing a tax that, by all forecasts, is going to decline in the future unless there was some comprehensive economic plan for the city, which we have not seen,” she said.

At Monday’s meeting, city officials also announced that a new three-year contract had been reached with the Burlington Police Officers’ Association union. A council vote to accept it will be held later this month.

Correction, August 5, 2025: This story and headline was update to better reflect that the meals and alcohol tax increase was a continuation of a policy already in place.