Establishes a restricted receipt account for the benefit of the Rhode Island public transit authority funded by sales taxes collected from ride-share companies; and provided further, the account would be exempt from indirect cost recovery provisions.

Plain-English Summary

This bill would create a dedicated savings account within Rhode Island's state government specifically to collect and hold sales tax money generated from ride-share companies — businesses like Uber and Lyft that connect passengers with drivers through smartphone apps. Instead of this tax revenue going into the state's general pool of funds, it would be set aside in a special "restricted receipt account" earmarked exclusively for the Rhode Island Public Transit Authority (RIPTA), which is the agency that operates the state's public bus system.

The money in this account would then be directed to RIPTA to support public transportation services across the state. The bill also specifies that this account would be "exempt from indirect cost recovery provisions," which means the state government cannot skim a portion of the funds to cover its own administrative overhead costs — ensuring the full amount collected goes directly to transit purposes rather than being partially redirected elsewhere in the budget.

This legislation would primarily affect Rhode Island commuters and residents who rely on public transit, as well as RIPTA itself, which could benefit from a more stable and dedicated funding stream. Ride-share companies operating in the state already pay sales taxes under existing law, so this bill does not create a new tax — it simply determines where that existing tax revenue goes. The bill has been introduced and referred to the House Finance Committee, where it will be reviewed before any further action is taken.