Imposes a seventy-five cent (0.75) surcharge on fares charged by rideshare companies as well as an account to benefit RIPTA from the payment of sales taxes collected from rideshares.
Impact
The bill is set to amend existing laws related to public utilities and carriers specifically focused on transportation network services. By instituting this surcharge, local municipalities will directly benefit from infrastructure improvements funded by the collected fees. With 50% of the revenue collected from the surcharge going directly to the municipality where the fare originates, there is a clear aim to connect the economic contributions of rideshare services with local infrastructure needs, promoting accountability and targeted investment.
Summary
House Bill 7678 proposes the imposition of a seventy-five cent ($0.75) surcharge on fares charged by rideshare and transportation network companies, which include popular services such as Uber and Lyft. The intent of this bill is to generate additional revenue that can be allocated to improve local street infrastructure and support public transit initiatives in Rhode Island. A significant portion of the surcharge will be designated for the funding of the 'Transit Forward RI' initiative, which aims to enhance the public transportation system in the state.
Contention
Despite the potential benefits, there may be points of contention rooted in the debate over how additional fees could affect the affordability of rideshare services for consumers. Stakeholders, including rideshare companies and consumer advocacy groups, may express concern that implementing this surcharge could lead to higher fares, potentially reducing ridership and impacting the business models of these companies. Furthermore, discussions around the allocation of funds and how effectively they will address infrastructure needs may emerge as critical issues among lawmakers and community representatives.
Relating to the creation of and the powers of a comprehensive multimodal urban transportation authority, including the power to impose taxes, issue bonds, and exercise limited eminent domain authority.