2025 -- S 0092
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LC000172
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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 MOTOR AN D OTHER VEHICLES -- RIDESHARE OR TRANSPO RTATION
NETWORK COMPANY VEHI CLE 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" 1
is hereby amended by adding thereto the following chapter: 2
CHAPTER 34.2 3
RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE 4
31-34.2-1. Rideshare or transportation network company vehicle surcharge. 5
(a) Each rideshare or transportation network company shall collect a surcharge which shall 6
be added to the fare charged to each customer. For the purposes of this chapter, "rideshare or 7
transportation network company" means a company that provides on-demand transportation 8
services through app-based platforms to connect drivers with clients or passengers to facilitate 9
and/or provide transportation for compensation or a fee. 10
(b) The surcharge shall be seventy-five cents ($0.75) per fare. 11
(c) The total amount of surcharge collections shall be remitted to the State of Rhode Island, 12
and fifty percent (50%) of the surcharge collections shall be deposited in a restricted account to be 13
used for street infrastructure improvements in the municipality where the fare originated, and fifty 14
percent (50%) of the surcharge collections shall be deposited in a restricted account to be used as 15
funding for implementation of Transit Forward RI as adopted by the state planning council. 16
(d) The tax administrator shall promulgate rules and regulations necessary to implement 17
the provisions of this chapter. 18
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(e) All disbursements and expenditures of funds from the restricted accounts subject to the 1
provisions of this section shall be by appropriation of the general assembly. 2
SECTION 2. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability 3
and Computation" is hereby amended by adding thereto the following section: 4
44-18-18.2. Transportation network companies tax. 5
All sales tax revenue collected from transportation network companies, as defined in § 44-6
18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode Island public 7
transit authority (RIPTA). 8
SECTION 3. This act shall take effect upon passage. 9
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO MOTOR AN D OTHER VEHICLES -- RIDESHARE OR TRANSPO RTATION
NETWORK COMPANY VEHI CLE SURCHARGE
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This act would impose a seventy-five cent ($0.75) surcharge on fares charged by rideshare 1
or transportation network companies. This act would also require that fifty percent (50%) of the 2
surcharge be deposited in a restricted account to be used for street improvements in the municipality 3
where the fare originated, and fifty percent (50%) of the surcharge be deposited in a restricted 4
account to fund Transit Forward RI. The tax administrator would promulgate rules and regulations 5
to implement the provisions of this chapter. The act would also establish a restricted receipt account 6
for the benefit of RIPTA funded by sales tax collected from ride-share companies such as Uber and 7
Lyft. 8
This act would take effect upon passage. 9
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LC000172
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