2024 -- S 2169

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LC004062

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- RIDESHARE OR TRANSPORTATION

NETWORK COMPANY VEHICLE SURCHARGE

     

     Introduced By: Senators Kallman, Cano, DiMario, Acosta, Gu, Sosnowski, Miller,
Ujifusa, Zurier, and Lauria

     Date Introduced: January 24, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 31 of the General Laws entitled "MOTOR AND OTHER VEHICLES"

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is hereby amended by adding thereto the following chapter:

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CHAPTER 34.2

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RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE

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     31-34.2-1. Rideshare or transportation network company vehicle surcharge.

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     (a) Each rideshare or transportation network company shall collect a surcharge which shall

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be added to the fare charged to each customer. For the purposes of this chapter, "rideshare or

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transportation network company" means a company that provides on-demand transportation

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services through app-based platforms to connect drivers with clients or passengers to facilitate

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and/or provide transportation for compensation or a fee.

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     (b) The surcharge shall be seventy-five cents ($0.75) per fare.

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     (c) The total amount of surcharge collections shall be remitted to the State of Rhode Island,

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and fifty percent (50%) of the surcharge collections shall be deposited in a restricted account to be

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used for street infrastructure improvements in the municipality where the fare originated, and fifty

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percent (50%) of the surcharge collections shall be deposited in a restricted account to be used as

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funding for implementation of Transit Forward RI as adopted by the state planning council.

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     (d) The tax administrator shall promulgate rules and regulations necessary to implement

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the provisions of this chapter.

 

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     (e) All disbursements and expenditures of funds from the restricted accounts subject to the

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provisions of this section shall be by appropriation of the general assembly.

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     SECTION 2. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability

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and Computation" is hereby amended by adding thereto the following section:

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     44-18-18.2. Transportation network companies tax.

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     All sales tax revenue collected from transportation network companies, as defined in § 44-

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18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode Island public

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transit authority (RIPTA).

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- RIDESHARE OR TRANSPORTATION

NETWORK COMPANY VEHICLE SURCHARGE

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     This act would impose a seventy-five cent ($0.75) surcharge on fares charged by rideshare

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or transportation network companies. This act would also require that fifty percent (50%) of the

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surcharge be deposited in a restricted account to be used for street improvements in the municipality

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where the fare originated, and fifty percent (50%) of the surcharge be deposited in a restricted

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account to fund Transit Forward RI. The tax administrator would promulgate rules and regulations

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to implement the provisions of this chapter. The act would also establish a restricted receipt account

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for the benefit of RIPTA funded by sales tax collected from ride-share companies such as Uber and

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Lyft.

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     This act would take effect upon passage.

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