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H 8145Public Transit

Public Finance - State Funds

This bill directs tax revenue from ride-share apps to fund specific public transit services for people with disabilities.

Held for study
Population
Affected
35
Email Legislator
Introduced Feb 27, 2026Committee House Finance

Plain-English Summary

This legislation establishes a dedicated funding source for the Rhode Island Public Transit Authority (RIPTA) to support its paratransit services and the "RIDE Anywhere" program. It mandates that sales and use tax revenue collected from transportation network companies (such as Uber and Lyft) be deposited into a new restricted receipt account specifically for these transit operations. Additionally, the bill exempts this specific account from the state's standard requirement to transfer 15% of receipts to the general fund, ensuring the full amount collected is used for the designated transportation services.

For younger readers

This bill helps pay for special bus rides for people who cannot drive or use regular buses, like people in wheelchairs. When people pay for rides on apps like Uber, the tax money usually goes to the state's big piggy bank for all sorts of things. This new law says that specific tax money will go into a special piggy bank just for these special bus rides. It also makes sure the state doesn't take a cut of that money for other bills, so all of it helps people get around.

Who & Where It Applies

Impacted groups
Public transit ridersPeople with disabilitiesTransportation network companiesRide-share passengersRhode Island Public Transit Authority
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Secures a dedicated stream of revenue for paratransit and "RIDE Anywhere" services, significantly benefiting individuals with disabilities and those relying on the social safety net for mobility.
  • Prevents the diversion of funds to the general budget by exempting the account from the 15% indirect cost recovery, ensuring more resources go directly to public services.
  • Utilizes revenue generated by private transportation corporations to subsidize essential public transportation infrastructure, aligning with the goal of corporate contribution to the public good.
  • Relies on revenue from the gig economy (transportation network companies), effectively tying the funding of essential public services to a labor model often criticized for exploiting workers.
  • Funds the initiative via sales and use taxes, which are generally considered regressive and disproportionately impact lower-income individuals who rely on ride-shares due to lack of car ownership.
  • Fragment funding for public transit by targeting only specific programs (paratransit), potentially neglecting the broader financial needs of the entire RIPTA system.
For Conservatives
  • Ensures that tax revenue collected from a specific transportation sector is used to fund transportation services, acting closer to a "user fee" model rather than general taxation.
  • Protects the funds from being siphoned off for general government administrative costs by exempting them from the indirect cost recovery transfer.
  • Provides a specific accounting mechanism for these funds, theoretically increasing transparency regarding how this specific revenue stream is utilized.
  • Reduces the flexibility of the state legislature to manage the budget by creating a "lockbox" for these funds, preventing them from being used for debt service or other general fund priorities.
  • Expands government bureaucracy by creating yet another restricted receipt account that requires specific management and oversight.
  • Diverts revenue that previously contributed to the General Fund, potentially creating a budget shortfall that could lead to tax increases elsewhere to fill the gap.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 13 additions

SECTION 1. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds" is hereby amended to read as follows: 35-4-27. Indirect cost recoveries on restricted receipt accounts. Indirect cost recoveries of fifteen percent (15%) of cash receipts shall be transferred from all restricted receipt accounts, to be recorded as general revenues in the general fund. However, there shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions from nonprofit charitable organizations; (2) From the assessment of indirect cost- recovery rates on federal grant funds; or (3) Through transfers from state agencies to the department of administration for the payment of debt service. These indirect cost recoveries shall be applied to all accounts, unless prohibited by federal law or regulation, court order, or court settlement. The following restricted receipt accounts shall not be subject to the provisions of this section: Executive Office of Health and Human Services HIV Care Grant Drug Rebates Health System Transformation Project Rhode Island Statewide Opioid Abatement Account HCBS Support-ARPA HCBS Admin Support-ARPA Department of Human Services Organ Transplant Fund Veterans’ home — Restricted account Veterans’ home — Resident benefits Pharmaceutical Rebates Account Demand Side Management Grants Veteran’s Cemetery Memorial Fund Donations — New Veterans’ Home Construction Commodity Supplemental Food Program-Claims Department of Health Pandemic medications and equipment account Miscellaneous Donations/Grants from Non-Profits State Loan Repayment Match Healthcare Information Technology Department of Behavioral Healthcare, Developmental Disabilities and Hospitals Eleanor Slater non-Medicaid third-party payor account Hospital Medicare Part D Receipts RICLAS Group Home Operations Group Home Facility Improvement Fund Commission on the Deaf and Hard of Hearing Emergency and public communication access account Department of Environmental Management National heritage revolving fund Environmental response fund II Underground storage tanks registration fees De Coppet Estate Fund Rhode Island Historical Preservation and Heritage Commission Historic preservation revolving loan fund Historic Preservation loan fund — Interest revenue Department of Public Safety E-911 Uniform Emergency Telephone System Forfeited property — Retained Forfeitures — Federal Forfeited property — Gambling Donation — Polygraph and Law Enforcement Training Rhode Island State Firefighter’s League Training Account Fire Academy Training Fees Account Attorney General Forfeiture of property Federal forfeitures Attorney General multi-state account Forfeited property — Gambling Department of Administration Health Insurance Market Integrity Fund RI Health Benefits Exchange Information Technology restricted receipt account Restore and replacement — Insurance coverage Convention Center Authority rental payments Investment Receipts — TANS OPEB System Restricted Receipt Account Grants Management Administration Office of Energy Resources OER Reconciliation Funding RGGI Executive Climate Change Coordinating Council Projects Electric Vehicle Charging Stations Operating and Maintenance Account Clean Transportation Programs Department of Housing Housing Resources and Homelessness Restricted Receipt Account Housing Production Fund Low-Income Housing Tax Credit Fund Department of Revenue Car Rental Tax/Surcharge-Warwick Share DMV Modernization Project Jobs Tax Credit Redemption Fund Legislature Audit of federal assisted programs Department of Children, Youth and Families Children’s Trust Accounts — SSI Military Staff RI Military Family Relief Fund RI National Guard Counterdrug Program Treasury Admin. Expenses — State Retirement System Retirement — Treasury Investment Options Defined Contribution — Administration - RR Violent Crimes Compensation — Refunds Treasury Research Fellowship Business Regulation Banking Division Reimbursement Account Office of the Health Insurance Commissioner Reimbursement Account Securities Division Reimbursement Account Commercial Licensing and Racing and Athletics Division Reimbursement Account Insurance Division Reimbursement Account Historic Preservation Tax Credit Account Rhode Island Cannabis Control Commission Marijuana Trust Fund Social Equity Assistance Fund Judiciary Arbitration Fund Restricted Receipt Account Third-Party Grants RI Judiciary Technology Surcharge Account Department of Elementary and Secondary Education Statewide Student Transportation Services Account School for the Deaf Fee-for-Service Account School for the Deaf — School Breakfast and Lunch Program Davies Career and Technical School Local Education Aid Account Davies — National School Breakfast & Lunch Program School Construction Services Office of the Postsecondary Commissioner Tuition Savings Program Fund Higher Education and Industry Center IGT STEM Scholarships Department of Labor and Training Job Development Fund Contractor Training Restricted Receipt Account Workers’ Compensation Administrative Account Rhode Island Council on the Arts Governors’ Portrait Donation Fund Statewide records management system account Rhode Island public transit authority account

SECTION 2. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability and Computation" is hereby amended by adding thereto the following section: 44-18-18.2. Rhode Island public transit authority operations allocation.

(a) All sales and use tax revenue collected from transportation network companies, as defined in § 44-18-7.3, shall be deposited in a restricted receipt account for the benefit of the Rhode Island public transit authority for purposes to fund paratransit transportation and RIDE Anywhere.

(b) There is created within the general fund a restricted receipt account known as the “Rhode Island public transit authority account”. Revenue collected from transportation network companies pursuant to subsection (a) of this section shall be deposited into this account and used to fund operations related to paratransit transportation and RIDE Anywhere of the Rhode Island public transit authority.

(c) The account created under this section shall be exempt from the indirect cost recovery provision set forth in § 35-4-27.

SECTION 3. This act shall take effect on July 1, 2026.