SEC. 3204. IMPOSITION OF TAX.

   (a)   Except as otherwise provided in this Article 32, for the privilege of engaging in business in the City and to raise revenue for the purposes set forth in Section 3208, the City imposes a Traffic Congestion Mitigation Tax, which shall be a special excise tax, as follows:

      (1)   Except as provided in Section 3204(a)(3), for each ride originating in the City facilitated by a Commercial Ride-Share Company, the tax shall be imposed on the Commercial Ride-Share Company and shall be calculated by applying the following percentages to the Net Rider Fare attributable to the City.

         (A)   1.5% for a Shared Ride;

         (B)   3.25% for a ride other than a Shared Ride.

      (2)   Except as provided in Section 3204(a)(3), for each ride originating in the City provided by an Autonomous Vehicle or a Private Transit Services Vehicle, and not facilitated by a Commercial Ride-Share Company, the tax shall be imposed on the Mobility Provider of the Autonomous Vehicle or the Private Transit Services Vehicle and shall be calculated by applying the following percentages to the Net Rider Fare attributable to the City.

         (A)   1.5% for a Shared Ride;

         (B)   3.25% for a ride other than a Shared Ride.

      (3)   From January 1, 2020 through December 31, 2024, for each ride described in Section 3204(a)(1) or Section 3204(a)(2) that is provided in a Zero-Emission Vehicle, the tax shall be calculated by multiplying the Net Rider Fare attributable to the City for that ride by 1.5%.

   (b)   For purposes of this Article 32, a passenger’s ride originates in the City if the vehicle picks up that passenger in the City. The Net Rider Fare attributable to the City for each ride shall be the Net Rider Fare for that ride multiplied by a fraction, the numerator of which is the distance traveled within the City for that ride and the denominator of which is the total distance traveled for that ride. In lieu of calculating the distance traveled within the City for each ride a portion of which occurs outside the City, a person subject to tax under this Article 32 may presume that the Net Rider Fare for each such ride is 50% attributable to the City; provided, however, that such presumption must be applied to all rides for which a portion occurs outside the City during the reporting period. If it is impracticable or unreasonable to attribute a Net Rider Fare to the City based on distance traveled, the Net Rider Fare attributable to the City shall be determined on the basis of all relevant facts and circumstances of the particular case, in accordance with any rulings or regulations issued or promulgated by the Tax Collector.

   (c)   The tax imposed under this Section 3204 shall apply only to persons that are engaging in business within the City within the meaning of Section 6.2-12 of Article 6 of the Business and Tax Regulations Code.

   (d)   The Traffic Congestion Mitigation Tax shall be operative on January 1, 2020 and shall expire on November 5, 2045.

(Added by Proposition D, 11/5/2019, Eff. 12/20/2019, Oper. 1/1/2020)