The bill introduces a new chapter, CHAPTER 34.2, to Title 31 of the General Laws, establishing a surcharge of seventy-five cents ($0.75) on fares charged by rideshare or transportation network companies. Each rideshare or transportation network company is required to collect this surcharge from customers, which will be remitted to the State of Rhode Island. Fifty percent (50%) of the surcharge collections will be deposited in a restricted account for street infrastructure improvements in the municipality where the fare originated, and the other fifty percent (50%) will be deposited in a restricted account to fund the implementation of Transit Forward RI, as adopted by the state planning council. The tax administrator is tasked with promulgating rules and regulations necessary to implement the provisions of this chapter.

Additionally, the bill amends Chapter 44-18 of the General Laws by adding a section that mandates 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). This act is set to take effect upon passage.