2025 -- H 5405
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LC000730
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO TAXATION – SALES AND USE TAXES – LIABILITY AND
COMPUTATION
Introduced By: Representatives Morales, Corvese, McNamara, Phillips, Donovan,
Kislak, Giraldo, Furtado, Tanzi, and Hull
Date Introduced: February 07, 2025
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability 1
and Computation" is hereby amended by adding thereto the following section: 2
44-18-18.2. Rhode Island public transit authority operations allocation. 3
(a) All sales and use tax revenue collected from transportation network companies, as 4
defined in § 44-18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode 5
Island public transit authority. 6
(b) There is created within the general fund a restricted receipt account known as the 7
“Rhode Island public transit authority account”. Revenue collected from transportation network 8
companies pursuant to subsection (a) of this section shall be deposited into this account and used 9
to fund operations related to the Rhode Island public transit authority. 10
(c) The account created under this section shall be exempt from the indirect cost recovery 11
provision set forth in § 35-4-27. 12
SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds" 13
is hereby amended to read as follows: 14
35-4-27. Indirect cost recoveries on restricted receipt accounts. 15
Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all 16
restricted receipt accounts, to be recorded as general revenues in the general fund. However, there 17
shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions 18
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from nonprofit charitable organizations; (2) From the assessment of indirect cost-recovery rates on 1
federal grant funds; or (3) Through transfers from state agencies to the department of administration 2
for the payment of debt service. These indirect cost recoveries shall be applied to all accounts, 3
unless prohibited by federal law or regulation, court order, or court settlement. The following 4
restricted receipt accounts shall not be subject to the provisions of this section: 5
Executive Office of Health and Human Services 6
Organ Transplant Fund 7
HIV Care Grant Drug Rebates 8
Health System Transformation Project 9
Rhode Island Statewide Opioid Abatement Account 10
HCBS Support-ARPA 11
HCBS Admin Support-ARPA 12
Department of Human Services 13
Veterans’ home — Restricted account 14
Veterans’ home — Resident benefits 15
Pharmaceutical Rebates Account 16
Demand Side Management Grants 17
Veteran’s Cemetery Memorial Fund 18
Donations — New Veterans’ Home Construction 19
Commodity Supplemental Food Program-Claims 20
Department of Health 21
Pandemic medications and equipment account 22
Miscellaneous Donations/Grants from Non-Profits 23
State Loan Repayment Match 24
Healthcare Information Technology 25
Department of Behavioral Healthcare, Developmental Disabilities and Hospitals 26
Eleanor Slater non-Medicaid third-party payor account 27
Hospital Medicare Part D Receipts 28
RICLAS Group Home Operations 29
Group Home Facility Improvement Fund 30
Commission on the Deaf and Hard of Hearing 31
Emergency and public communication access account 32
Department of Environmental Management 33
National heritage revolving fund 34
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Environmental response fund II 1
Underground storage tanks registration fees 2
De Coppet Estate Fund 3
Rhode Island Historical Preservation and Heritage Commission 4
Historic preservation revolving loan fund 5
Historic Preservation loan fund — Interest revenue 6
Department of Public Safety 7
E-911 Uniform Emergency Telephone System 8
Forfeited property — Retained 9
Forfeitures — Federal 10
Forfeited property — Gambling 11
Donation — Polygraph and Law Enforcement Training 12
Rhode Island State Firefighter’s League Training Account 13
Fire Academy Training Fees Account 14
Attorney General 15
Forfeiture of property 16
Federal forfeitures 17
Attorney General multi-state account 18
Forfeited property — Gambling 19
Department of Administration 20
OER Reconciliation Funding 21
Health Insurance Market Integrity Fund 22
RI Health Benefits Exchange 23
Information Technology restricted receipt account 24
Restore and replacement — Insurance coverage 25
Convention Center Authority rental payments 26
Investment Receipts — TANS 27
OPEB System Restricted Receipt Account 28
Car Rental Tax/Surcharge-Warwick Share 29
Grants Management Administration 30
RGGI-Executive Climate Change Coordinating Council Projects 31
Electric Vehicle Charging Stations Operating and Maintenance Account 32
Department of Housing 33
Housing Resources and Homelessness Restricted Receipt Account 34
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Housing Production Fund 1
Low-Income Housing Tax Credit Fund 2
Department of Revenue 3
DMV Modernization Project 4
Jobs Tax Credit Redemption Fund 5
Legislature 6
Audit of federal assisted programs 7
Department of Children, Youth and Families 8
Children’s Trust Accounts — SSI 9
Military Staff 10
RI Military Family Relief Fund 11
RI National Guard Counterdrug Program 12
Treasury 13
Admin. Expenses — State Retirement System 14
Retirement — Treasury Investment Options 15
Defined Contribution — Administration - RR 16
Violent Crimes Compensation — Refunds 17
Treasury Research Fellowship 18
Business Regulation 19
Banking Division Reimbursement Account 20
Office of the Health Insurance Commissioner Reimbursement Account 21
Securities Division Reimbursement Account 22
Commercial Licensing and Racing and Athletics Division Reimbursement Account 23
Insurance Division Reimbursement Account 24
Historic Preservation Tax Credit Account 25
Marijuana Trust Fund 26
Social Equity Assistance Fund 27
Judiciary 28
Arbitration Fund Restricted Receipt Account 29
Third-Party Grants 30
RI Judiciary Technology Surcharge Account 31
Department of Elementary and Secondary Education 32
Statewide Student Transportation Services Account 33
School for the Deaf Fee-for-Service Account 34
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School for the Deaf — School Breakfast and Lunch Program 1
Davies Career and Technical School Local Education Aid Account 2
Davies — National School Breakfast & Lunch Program 3
School Construction Services 4
Office of the Postsecondary Commissioner 5
Higher Education and Industry Center 6
IGT STEM Scholarships 7
Department of Labor and Training 8
Job Development Fund 9
Contractor Training Restricted Receipt Account 10
Rhode Island Council on the Arts 11
Governors’ Portrait Donation Fund 12
Statewide records management system account 13
Rhode Island public transit authority account 14
SECTION 3. This act shall take effect on July 1, 2025. 15
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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
***
This act would establish a restricted receipt account for the benefit of the Rhode Island 1
public transit authority for use to fund its operations, funded by sales taxes collected from ride-2
share companies, which account would be exempt from indirect cost recovery provisions. 3
This act would take effect on July 1, 2025. 4
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