Thirty-eight cents? In this economy?

Uber, Lyft and other rides for hire in Baltimore are likely to get a little more expensive under legislation advanced by a Baltimore City Council committee Tuesday.

The proposal, spearheaded by Mayor Brandon Scott’s administration, calls for the city’s tax on ride-sharing services and taxis to increase from 25 cents per ride to 38 cents.

The increase, a relatively small share of an average ride, would add up for the city. An extra $2 million would be generated by the hike, boosting annual proceeds from the tax to $5.8 million, said Bob Cenname, Baltimore’s deputy finance director. The money must be spent on transportation-related projects.

The tax is one of several fines and fees Scott plans to increase as part of his $4.6 billion budget for fiscal year 2026. Some, like an increase to ambulance rides and landfill tipping fees, were more clearly outlined in the spending plan. Others were dependent on a study of fines and fees that has not yet been made public.

Cenname said officials had hoped to double the tax to 50 cents, but opted for a more modest 38 cents in hopes of testing out the effect on ridership. The administration plans to return to the council in a few years to request an additional increase if rides remain consistent, Cenname said.

Just how many riders are using Uber and Lyft in Baltimore remains cloaked in secrecy. A 2014 state law that cleared the way for the city to begin charging the tax shielded rideshare companies from disclosing such data.

Rideshare companies pay the tax to the state and the state writes the city a check, Cenname explained. Working backward, city officials estimate there are about 15 million rides in Baltimore each year. But exactly where those rides begin and end is unknown. The city can only tax rides that begin in Baltimore.

That lack of data was troublesome to the members of the council’s Budget and Appropriations Committee, which ultimately advanced the bill by a 3-0 vote Tuesday. Chairwoman Danielle McCray said there was no way to audit the funds to ensure they’re being accurately collected.

“We cannot just collect a check and not have any information about where it is coming from,” she said. “If the council is saying we’re concerned about an equity impact and the administration is constantly saying equity is a big deal, for this, we can’t tell the equity impact without any data.”

Councilman Paris Gray asked how confident city officials were that ride behavior wouldn’t change as a result of the increase.

Cenname said his team looked at other cities that charge a similar tax for comparisons. They found no analyses showing that rides dipped as a result of a fee increase. Survey data did show users of rideshare companies skews younger. Subsequently, Cenname said he anticipated less of an impact on income-restricted seniors.

Regionally, Washington, D.C., charges a 6% tax on rideshare trips while Philadelphia charges 1.4%. New York City riders pay 4.5% tax to the city, 4% to the state and an additional congestion fee.

One year ago, New York City implemented congestion pricing, and studies have found fewer people are driving on the city’s streets.

Maryland’s law is structured so that rideshare taxes must be flat, rather than a percentage. Jurisdictions, except for Baltimore, are capped at 25 cents per ride. Howard, Anne Arundel, Montgomery and Prince George’s counties all charge the tax as do four other cities, including Annapolis and Ocean City.

The rideshare tax increase must still be considered by the full City Council, which will meet again on Jan. 26.

If approved, the increase will not be effective until 120 days after the bill is signed.