San Francisco lawmakers want to tax Uber and Lyft rides, and both companies say that’s OK with them.

The proposed tax eliminates a ballot initiative that Supervisor Aaron Peskin had planned for November that would have asked voters to tax ride-hailing companies’ gross receipts at rates up to 0.975 percent. Peskin withdrew that measure after weeks of negotiations with Uber and Lyft produced an agreement to tax only net fares, excluding additional charges such as tolls, airport fees and tips to drivers.

That change was much more palatable to Uber and Lyft, because they wouldn’t have to pay taxes on money they don’t receive.

Uber and Lyft were motivated to avoid a bruising ballot campaign in their hometown, according to sources close to the talks. The gross-receipts tax had the backing of San Francisco’s supervisors and was expected to easily reach the 50 percent margin it needed to pass.

....