AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Establishes a restricted receipt account for the benefit of the Rhode Island public transit authority, funded by sales taxes collected from ride-share companies, which said sales taxes would be exempt from indirect cost recovery provisions.)

S3133

2026 -- S 3133
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LC004331
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
COMPUTATION

Introduced By:
Senators Britto, McKenney, Burke, and Murray

Date Introduced:
March 20, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. 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. Rhode Island public transit authority operations allocation.

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(a) All sales and use tax revenue collected from transportation network companies, as
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defined in § 44-18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode
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Island public transit authority.
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(b) There is created within the general fund a restricted receipt account known as the
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“Rhode Island public transit authority account”. Revenue collected from transportation network
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companies pursuant to subsection (a) of this section shall be deposited into this account and used
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to fund operations related to the Rhode Island public transit authority.
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(c) The account created under this section shall be exempt from the indirect cost recovery
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provision set forth in § 35-4-27.
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SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
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is hereby amended to read as follows:
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35-4-27. Indirect cost recoveries on restricted receipt accounts.
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Indirect cost recoveries of fifteen percent (15%) of cash receipts shall be transferred from
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all restricted receipt accounts, to be recorded as general revenues in the general fund. However,
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there shall be no transfer from cash receipts with restrictions received exclusively: (1) From

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contributions from nonprofit charitable organizations; (2) From the assessment of indirect cost-
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recovery rates on federal grant funds; or (3) Through transfers from state agencies to the department
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of administration for the payment of debt service. These indirect cost recoveries shall be applied to
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all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The
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following restricted receipt accounts shall not be subject to the provisions of this section:
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Executive Office of Health and Human Services
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HIV Care Grant Drug Rebates
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Health System Transformation Project
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Rhode Island Statewide Opioid Abatement Account
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HCBS Support-ARPA
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HCBS Admin Support-ARPA
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Department of Human Services
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Organ Transplant Fund
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Veterans’ home — Restricted account
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Veterans’ home — Resident benefits
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Pharmaceutical Rebates Account
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Demand Side Management Grants
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Veteran’s Cemetery Memorial Fund
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Donations — New Veterans’ Home Construction
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Commodity Supplemental Food Program-Claims
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Department of Health
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Pandemic medications and equipment account
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Miscellaneous Donations/Grants from Non-Profits
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State Loan Repayment Match
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Healthcare Information Technology
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Department of Behavioral Healthcare, Developmental Disabilities and Hospitals
27
Eleanor Slater non-Medicaid third-party payor account
28
Hospital Medicare Part D Receipts
29
RICLAS Group Home Operations
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Group Home Facility Improvement Fund
31
Commission on the Deaf and Hard of Hearing
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Emergency and public communication access account
33
Department of Environmental Management
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National heritage revolving fund

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Environmental response fund II
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Underground storage tanks registration fees
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De Coppet Estate Fund
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Rhode Island Historical Preservation and Heritage Commission
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Historic preservation revolving loan fund
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Historic Preservation loan fund — Interest revenue
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Department of Public Safety
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E-911 Uniform Emergency Telephone System
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Forfeited property — Retained
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Forfeitures — Federal
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Forfeited property — Gambling
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Donation — Polygraph and Law Enforcement Training
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Rhode Island State Firefighter’s League Training Account
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Fire Academy Training Fees Account
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Attorney General
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Forfeiture of property
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Federal forfeitures
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Attorney General multi-state account
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Forfeited property — Gambling
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Department of Administration
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Health Insurance Market Integrity Fund
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RI Health Benefits Exchange
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Information Technology restricted receipt account
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Restore and replacement — Insurance coverage
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Convention Center Authority rental payments
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Investment Receipts — TANS
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OPEB System Restricted Receipt Account
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Grants Management Administration
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Office of Energy Resources
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OER Reconciliation Funding
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RGGI Executive Climate Change Coordinating Council Projects
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Electric Vehicle Charging Stations Operating and Maintenance Account
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Clean Transportation Programs
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Department of Housing

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Housing Resources and Homelessness Restricted Receipt Account
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Housing Production Fund
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Low-Income Housing Tax Credit Fund
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Department of Revenue
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Car Rental Tax/Surcharge-Warwick Share
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DMV Modernization Project
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Jobs Tax Credit Redemption Fund
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Legislature
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Audit of federal assisted programs
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Department of Children, Youth and Families
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Children’s Trust Accounts — SSI
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Military Staff
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RI Military Family Relief Fund
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RI National Guard Counterdrug Program
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Treasury
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Admin. Expenses — State Retirement System
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Retirement — Treasury Investment Options
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Defined Contribution — Administration - RR
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Violent Crimes Compensation — Refunds
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Treasury Research Fellowship
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Business Regulation
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Banking Division Reimbursement Account
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Office of the Health Insurance Commissioner Reimbursement Account
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Securities Division Reimbursement Account
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Commercial Licensing and Racing and Athletics Division Reimbursement Account
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Insurance Division Reimbursement Account
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Historic Preservation Tax Credit Account
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Rhode Island Cannabis Control Commission
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Marijuana Trust Fund
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Social Equity Assistance Fund
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Judiciary
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Arbitration Fund Restricted Receipt Account
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Third-Party Grants
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RI Judiciary Technology Surcharge Account

LC004331 - Page 4 of 6
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Department of Elementary and Secondary Education
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Statewide Student Transportation Services Account
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School for the Deaf Fee-for-Service Account
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School for the Deaf — School Breakfast and Lunch Program
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Davies Career and Technical School Local Education Aid Account
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Davies — National School Breakfast & Lunch Program
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School Construction Services
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Office of the Postsecondary Commissioner
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Tuition Savings Program Fund
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Higher Education and Industry Center
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IGT STEM Scholarships
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Department of Labor and Training
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Job Development Fund
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Contractor Training Restricted Receipt Account
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Workers’ Compensation Administrative Account
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Rhode Island Council on the Arts
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Governors’ Portrait Donation Fund
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Statewide records management system account
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Rhode Island public transit authority account
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SECTION 3. This act shall take effect on July 1, 2026.
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LC004331
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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
***
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This act would establish a restricted receipt account for the benefit of the Rhode Island
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public transit authority for use to fund its operations, funded by sales taxes collected from ride-
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share companies, which account would be exempt from indirect cost recovery provisions.
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This act would take effect on July 1, 2026.
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LC004331
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