S 2092Public Transit

Motor and Other Vehicles - Rideshare or Transportation Network Company Vehicle Surcharge

This bill creates a $0.75 surcharge on rideshare trips to fund local street repairs and public transit projects.

Held for study

Population
Affected

Introduced Jan 16, 2026Committee Senate Finance

Plain-English Summary

This legislation establishes a seventy-five cent ($0.75) surcharge on every fare charged by rideshare or transportation network companies (such as Uber or Lyft). The revenue collected from this surcharge is divided equally: fifty percent goes to a restricted account for street infrastructure improvements in the municipality where the ride originated, and fifty percent goes to fund the "Transit Forward RI" plan. Additionally, the bill mandates that all sales tax revenue collected from these companies be deposited into a restricted account specifically to benefit the Rhode Island Public Transit Authority (RIPTA).

For younger readers

When people use an app on a phone to get a ride from a driver, like with Uber or Lyft, this new rule adds a small extra cost of 75 cents to the price of the ride. The company will collect this money and give it to the state. Half of the money will be used to fix the streets in the town where the ride started. The other half will be used to help pay for buses and trains in Rhode Island. It also uses sales tax money from these rides to help the public bus system.

Who & Where It Applies

Impacted groups

Rideshare passengersRideshare driversTransportation network companies (Uber, Lyft, etc.)Public transit riders (RIPTA users)Municipalities

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Rideshare Passengers: $0.75/fare

Estimated revenue

$0.75/fare

Bill Analysis

Both viewpoints

For Progressives

Provides dedicated, restricted funding streams for the Rhode Island Public Transit Authority (RIPTA) and the "Transit Forward RI" plan, promoting sustainable public transportation.
Allocates resources specifically for street infrastructure improvements in municipalities, potentially improving safety and accessibility in local communities.
Ensures that corporations profiting from transportation infrastructure contribute directly to its maintenance and the expansion of public transit alternatives.
Imposes a flat fee surcharge ($0.75) rather than a percentage-based fee, which is regressive and places a disproportionate financial burden on lower-income riders who rely on these services.
May increase the cost of transportation for individuals in areas underserved by public transit who have no choice but to use rideshare services for essential travel.
Requires legislative appropriation for the disbursement of funds, which could allow political gridlock to delay the distribution of money intended for transit and infrastructure.

For Conservatives

Utilizes a "user fee" model where those utilizing the roads via rideshare services contribute directly to the maintenance of the infrastructure they are using.
Directs fifty percent of the surcharge revenue back to the specific municipality where the fare originated, supporting local control and local infrastructure needs.
Places sales tax revenue into a restricted receipt account rather than the general fund, theoretically preventing the money from being spent on unrelated government programs.
Increases the financial burden on consumers and businesses by imposing a new government mandate and surcharge on private transactions.
Redirects general sales tax revenue to subsidize a specific public entity (RIPTA), potentially reducing funds available for other general state obligations or tax relief.
Expands the size and scope of government by creating new restricted accounts and requiring the tax administrator to promulgate new regulations.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 20 additions

SECTION 1. Title 31 of the General Laws entitled "MOTOR AND OTHER VEHICLES" is hereby amended by adding thereto the following chapter: 31-34.2-1. Rideshare or transportation network company vehicle surcharge.

(a) Each rideshare or transportation network company shall collect a surcharge which shall be added to the fare charged to each customer. For the purposes of this chapter, "rideshare or transportation network company" means a company that provides on-demand transportation services through app-based platforms to connect drivers with clients or passengers to facilitate and/or provide transportation for compensation or a fee.

(b) The surcharge shall be seventy-five cents ($0.75) per fare.

(c) The total amount of surcharge collections shall be remitted to the State of Rhode Island, and fifty percent (50%) of the surcharge collections shall be deposited in a restricted account to be used for street infrastructure improvements in the municipality where the fare originated, and fifty percent (50%) of the surcharge collections shall be deposited in a restricted account to be used as funding for implementation of Transit Forward RI as adopted by the state planning council.

(d) The tax administrator shall promulgate rules and regulations necessary to implement the provisions of this chapter.

(e) All disbursements and expenditures of funds from the restricted accounts subject to the provisions of this section shall be by appropriation of the general assembly.

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. Transportation network companies tax. All sales 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 (RIPTA).

SECTION 3. This act shall take effect upon passage.