AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE (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.)

S2092

2026 -- S 2092
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LC003689
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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 MOTOR AND OTHER VEHICLES -- RIDESHARE OR TRANSPORTATION
NETWORK COMPANY VEHICLE SURCHARGE

Introduced By:
Senators Kallman, Lawson, Urso, Valverde, Zurier, Pearson, Mack,
Ujifusa, and DiPalma

Date Introduced:
January 16, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Title 31 of the General Laws entitled "MOTOR AND OTHER VEHICLES"
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is hereby amended by adding thereto the following chapter:
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CHAPTER 34.2
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RIDESHARE OR TRANSPORTATION NETWORK COMPANY VEHICLE SURCHARGE
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31-34.2-1. Rideshare or transportation network company vehicle surcharge.

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(a) Each rideshare or transportation network company shall collect a surcharge which shall
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be added to the fare charged to each customer. For the purposes of this chapter, "rideshare or
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transportation network company" means a company that provides on-demand transportation
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services through app-based platforms to connect drivers with clients or passengers to facilitate
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and/or provide transportation for compensation or a fee.
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(b) The surcharge shall be seventy-five cents ($0.75) per fare.
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(c) The total amount of surcharge collections shall be remitted to the State of Rhode Island,
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and fifty percent (50%) of the surcharge collections shall be deposited in a restricted account to be
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used for street infrastructure improvements in the municipality where the fare originated, and fifty
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percent (50%) of the surcharge collections shall be deposited in a restricted account to be used as
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funding for implementation of Transit Forward RI as adopted by the state planning council.
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(d) The tax administrator shall promulgate rules and regulations necessary to implement
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the provisions of this chapter.

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(e) All disbursements and expenditures of funds from the restricted accounts subject to the
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provisions of this section shall be by appropriation of the general assembly.
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SECTION 2. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability
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and Computation" is hereby amended by adding thereto the following section:
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44-18-18.2. Transportation network companies tax.

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All sales tax revenue collected from transportation network companies, as defined in § 44-
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18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode Island public
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transit authority (RIPTA).
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SECTION 3. This act shall take effect upon passage.
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LC003689
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO MOTOR AND OTHER VEHICLES -- RIDESHARE OR TRANSPORTATION
NETWORK COMPANY VEHICLE SURCHARGE
***
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This act would impose a seventy-five cent ($0.75) surcharge on fares charged by rideshare
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or transportation network companies. This act would also require that fifty percent (50%) of the
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surcharge be deposited in a restricted account to be used for street improvements in the municipality
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where the fare originated, and fifty percent (50%) of the surcharge be deposited in a restricted
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account to fund Transit Forward RI. The tax administrator would promulgate rules and regulations
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to implement the provisions of this chapter. The act would also establish a restricted receipt account
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for the benefit of RIPTA funded by sales tax collected from ride-share companies such as Uber and
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Lyft.
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This act would take effect upon passage.
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LC003689
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