2025 -- S 0092

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LC000172

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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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, Ciccone, Britto, Sosnowski, Murray, Acosta, Mack,
Euer, and Appollonio

     Date Introduced: January 31, 2025

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

is hereby amended by adding thereto the following chapter:

CHAPTER 34.2

RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE

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

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

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

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

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

and/or provide transportation for compensation or a fee.

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

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

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

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

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

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

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

the provisions of this chapter.

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

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

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

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

     44-18-18.2. Transportation network companies tax.

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

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

transit authority (RIPTA).

     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

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

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

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

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

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

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

Lyft.

     This act would take effect upon passage.

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LC000172

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