A city with a storied past, a top-notch healthcare system, and a thriving arts community is Rochester, New York. The situation is little more convoluted when it comes to ride-hailing services like Lyft and Uber. Uber doesn’t run in Rochester, but Lyft does. This article will examine the causes of this and address some pertinent queries about local taxes.
Uber does not now operating in Rochester, as was already mentioned. In 2017, the business briefly provided its services in the city before withdrawing. Lack of demand was mentioned as the key justification for this decision. When asked about the decision, an Uber representative said, “We have made the difficult decision to pause operations in Rochester as we focus on markets with the greatest need and demand for ridesharing.”
While this may be the case, other residents have hypothesized that there may have been other considerations involved in Uber’s decision to leave Rochester. A local law requiring ride-hailing businesses to use the city’s police department to do background checks on their drivers is one option. This is different from the background checks that Uber and Lyft normally conduct at the state level, which some have said are more thorough.
Moving on to Minnesota, the southeast of the state is home to another Rochester. It is known as “Med City” and is the location of the renowned Mayo Clinic. Rochester, Minnesota does have a city tax when it comes to taxation. The city’s sales tax rate is 0.5% as of 2021, in addition to the state’s 6.875% levy. This results in a 7.375% overall sales tax rate in Rochester, Minnesota.
Just outside of Minneapolis, in Hennepin County, Minnesota, sits the city of Edina. Like Rochester, Minnesota, Edina levies a city tax. The city’s sales tax rate is 0.5% as of 2021, in addition to the state’s 6.875% levy. As a result, Edina, Minnesota now has a total sales tax rate of 7.375%, the same as Rochester, Minnesota.
Let’s last look at Olmsted County, which is where Rochester, Minnesota is situated. Olmsted County’s sales tax rate is the same as the state’s 6.875% because counties in Minnesota are not allowed to set their own sales tax rates. It’s important to keep in mind that several county-adjacent communities, including Rochester and Byron, do have their own municipal tax rates, as was previously mentioned.
In conclusion, although Uber may not be accessible in Rochester, New York, both locals and visitors can still utilize Lyft to get around. On the tax front, Olmsted County’s sales tax rate is 6.875%, whereas the rates in Rochester, Edina, and other Minnesota cities are all 7.375%.