Chiaravalloti Bill for Transportation Services to Aid in School Funding Gains Assembly Panel Approval

(TRENTON) – Legislation sponsored by Assemblyman Nicholas Chiaravalloti to establish a 20 cent per ride fee on certain prearranged rides, dedicating revenue to schools, was approved by the Assembly Budget Committee on Tuesday.

This fee would pertain to prearranged rides provided by transportation network companies and would be adjusted annually for inflation. The fee would only be applied if the ride is provided entirely within the state.

“These days, it is difficult to find people who are not taking advantage of prearranged ride services such as Uber and Lyft,” said Chiaravalloti (D-Hudson). “Devoting some of the increasing revenue coming from these services to our schools is significantly beneficial to our students as well as our state.”

Under the bill (A-4061), transportation network companies would be required to collect the fees and pay them quarterly. The fees are governed by the State Uniform Tax Procedure Law, and the Director of the Division of Taxation would be authorized to immediately issue rules to carry through the purpose of the bill.

The money collected from this fee would be deposited in the Property Tax Relief Fund and would be used as aid to school districts.

Extra time would be given before this measure becomes active to allow transportation network companies and the Division of Taxation to take necessary preparatory action to comply with it.