S3084

	2026 -- S 3084
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	LC005852
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	STATE OF RHODE ISLAND
	IN GENERAL ASSEMBLY
	JANUARY SESSION, A.D. 2026
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	A N A C T
	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
	COMPUTATION

	Introduced By: Senators Britto, McKenney, and Bissaillon
	Date Introduced: March 13, 2026
	Referred To: Senate Finance
	It is enacted by the General Assembly as follows:
1	SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability
2	and Computation" is hereby amended by adding thereto the following section:
3	44-18-18.3. Rhode Island public transit authority operations allocation.
4	(a) All sales and use tax revenue collected from transportation network companies, as
5	defined in § 44-18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode
6	Island public transit authority for purposes to fund paratransit transportation and RIDE Anywhere.
7	(b) There is created within the general fund a restricted receipt account known as the
8	“Rhode Island public transit authority account”. Revenue collected from transportation network
9	companies pursuant to subsection (a) of this section shall be deposited into this account and used
10	to fund operations related to paratransit transportation and RIDE Anywhere to the Rhode Island
11	public transit authority.
12	(c) The account created under this section shall be exempt from the indirect cost recovery
13	provision set forth in § 35-4-27.
14	SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
15	is hereby amended to read as follows:
16	35-4-27. Indirect cost recoveries on restricted receipt accounts.
17	Indirect cost recoveries of fifteen percent (15%) ten percent (10%) of cash receipts shall
18	be transferred from all restricted receipt accounts, to be recorded as general revenues in the general

1	fund. However, there shall be no transfer from cash receipts with restrictions received exclusively:
2	(1) From contributions from nonprofit charitable organizations; (2) From the assessment of indirect
3	cost-recovery rates on federal grant funds; or (3) Through transfers from state agencies to the
4	department of administration for the payment of debt service. These indirect cost recoveries shall
5	be applied to all accounts, unless prohibited by federal law or regulation, court order, or court
6	settlement. The following restricted receipt accounts shall not be subject to the provisions of this
7	section:
8	Executive Office of Health and Human Services
9	HIV Care Grant Drug Rebates
10	Health System Transformation Project
11	Rhode Island Statewide Opioid Abatement Account
12	HCBS Support-ARPA
13	HCBS Admin Support-ARPA
14	Department of Human Services
15	Organ Transplant Fund
16	Veterans’ home — Restricted account
17	Veterans’ home — Resident benefits
18	Pharmaceutical Rebates Account
19	Demand Side Management Grants
20	Veteran’s Cemetery Memorial Fund
21	Donations — New Veterans’ Home Construction
22	Commodity Supplemental Food Program-Claims
23	Department of Health
24	Pandemic medications and equipment account
25	Miscellaneous Donations/Grants from Non-Profits
26	State Loan Repayment Match
27	Healthcare Information Technology
28	Department of Behavioral Healthcare, Developmental Disabilities and Hospitals
29	Eleanor Slater non-Medicaid third-party payor account
30	Hospital Medicare Part D Receipts
31	RICLAS Group Home Operations
32	Group Home Facility Improvement Fund
33	Commission on the Deaf and Hard of Hearing
34	Emergency and public communication access account
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1	Department of Environmental Management
2	National heritage revolving fund
3	Environmental response fund II
4	Underground storage tanks registration fees
5	De Coppet Estate Fund
6	Rhode Island Historical Preservation and Heritage Commission
7	Historic preservation revolving loan fund
8	Historic Preservation loan fund — Interest revenue
9	Department of Public Safety
10	E-911 Uniform Emergency Telephone System
11	Forfeited property — Retained
12	Forfeitures — Federal
13	Forfeited property — Gambling
14	Donation — Polygraph and Law Enforcement Training
15	Rhode Island State Firefighter’s League Training Account
16	Fire Academy Training Fees Account
17	Attorney General
18	Forfeiture of property
19	Federal forfeitures
20	Attorney General multi-state account
21	Forfeited property — Gambling
22	Department of Administration
23	Health Insurance Market Integrity Fund
24	RI Health Benefits Exchange
25	Information Technology restricted receipt account
26	Restore and replacement — Insurance coverage
27	Convention Center Authority rental payments
28	Investment Receipts — TANS
29	OPEB System Restricted Receipt Account
30	Grants Management Administration
31	Office of Energy Resources
32	OER Reconciliation Funding
33	RGGI Executive Climate Change Coordinating Council Projects
34	Electric Vehicle Charging Stations Operating and Maintenance Account
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1	Clean Transportation Programs
2	Department of Housing
3	Housing Resources and Homelessness Restricted Receipt Account
4	Housing Production Fund
5	Low-Income Housing Tax Credit Fund
6	Department of Revenue
7	Car Rental Tax/Surcharge-Warwick Share
8	DMV Modernization Project
9	Jobs Tax Credit Redemption Fund
10	Legislature
11	Audit of federal assisted programs
12	Department of Children, Youth and Families
13	Children’s Trust Accounts — SSI
14	Military Staff
15	RI Military Family Relief Fund
16	RI National Guard Counterdrug Program
17	Treasury
18	Admin. Expenses — State Retirement System
19	Retirement — Treasury Investment Options
20	Defined Contribution — Administration - RR
21	Violent Crimes Compensation — Refunds
22	Treasury Research Fellowship
23	Business Regulation
24	Banking Division Reimbursement Account
25	Office of the Health Insurance Commissioner Reimbursement Account
26	Securities Division Reimbursement Account
27	Commercial Licensing and Racing and Athletics Division Reimbursement Account
28	Insurance Division Reimbursement Account
29	Historic Preservation Tax Credit Account
30	Rhode Island Cannabis Control Commission
31	Marijuana Trust Fund
32	Social Equity Assistance Fund
33	Judiciary
34	Arbitration Fund Restricted Receipt Account
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1	Third-Party Grants
2	RI Judiciary Technology Surcharge Account
3	Department of Elementary and Secondary Education
4	Statewide Student Transportation Services Account
5	School for the Deaf Fee-for-Service Account
6	School for the Deaf — School Breakfast and Lunch Program
7	Davies Career and Technical School Local Education Aid Account
8	Davies — National School Breakfast & Lunch Program
9	School Construction Services
10	Office of the Postsecondary Commissioner
11	Tuition Savings Program Fund
12	Higher Education and Industry Center
13	IGT STEM Scholarships
14	Department of Labor and Training
15	Job Development Fund
16	Contractor Training Restricted Receipt Account
17	Workers’ Compensation Administrative Account
18	Rhode Island Council on the Arts
19	Governors’ Portrait Donation Fund
20	Statewide records management system account
21	Rhode Island public transit authority account
22	SECTION 3. This act shall take effect on July 1, 2026.
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	LC005852
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	EXPLANATION
	BY THE LEGISLATIVE COUNCIL
	OF
	A N A C T
	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
	COMPUTATION
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1	This act would establish a restricted receipt account for the benefit of the Rhode Island
2	public transit authority to fund its operations, funded by sales taxes collected from ride- share
3	companies, which account would be exempt from indirect cost recovery provisions.
4	This act would take effect on July 1, 2026.
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	LC005852
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