The bill proposes the introduction of a new chapter, Chapter 34.2, titled "Rideshare or Transportation Network Company Vehicle Surcharge," to Title 31 of the General Laws. This chapter mandates that rideshare or transportation network companies, which are defined as companies offering on-demand transportation services via app-based platforms, collect a surcharge of seventy-five cents ($0.75) per fare from customers. The collected surcharge is to be remitted to the State of Rhode Island, with half of the funds being allocated to a restricted account for street infrastructure improvements in the municipality where the fare originated, and the other half to a restricted account for funding the implementation of Transit Forward RI as adopted by the state planning council. The tax administrator is tasked with creating the necessary rules and regulations to enforce this chapter.

Additionally, the bill amends Chapter 44-18 of the General Laws, "Sales and Use Taxes — Liability and Computation," by adding a new section that directs all sales tax revenue collected from transportation network companies to be deposited into a restricted receipt account for the benefit of the Rhode Island public transit authority (RIPTA). The act is set to take effect immediately upon passage. The bill does not include any deletions from the current law.