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.
The implementation of this surcharge is expected to provide a new funding source for local governments and transit authorities, addressing pressing needs for infrastructure improvements and public transportation services. By linking rideshare operations to local financial resources, the bill may enhance the overall quality of the transportation network within Rhode Island. Supporters of the bill argue that it will not only improve street conditions but also promote greater public transit use, ultimately benefiting communities across the state.
Bill S2169, introduced in the Rhode Island General Assembly, proposes the implementation of a seventy-five cent ($0.75) surcharge on fares charged by rideshare or transportation network companies, such as Uber and Lyft. The surcharge aims to generate revenue to support local infrastructure and public transit initiatives. Specifically, the bill mandates that half of the collected surcharge be allocated to a restricted account for street improvements in the municipality where the fare originated, while the other half supports the Transit Forward RI program as determined by the state planning council.
While the bill appears to offer significant advantages for infrastructure funding and public transit enhancement, potential points of contention could arise from rideshare companies and their customers, who may view the surcharge as an additional cost that disincentivizes rideshare usage. Critics may argue that the bill puts an unnecessary financial burden on users, possibly leading to reduced rideshare patronage. Furthermore, the distribution of funds raised from the surcharge may be scrutinized, particularly regarding the effectiveness and allocation of resources towards local improvements and public transit developments.