Ride-sharing and special needs transportation

From the 2024 DOR Tax Exemption Study

82.16.047 - Ride-sharing and special needs transportation Description Ride-sharing receipts are exempt from PU tax for: - Vanpools and carpools used for ride-sharing. - Public social service agencies or private, nonprofit transportation providers that transport people with special transportation needs. Purpose Reduces motor vehicle fuel consumption and traffic congestion by promoting ride- sharing and supports nonprofit organizations that provide group transportation services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.733 $0.755 $0.781 $0.809 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.692 $0.781 $0.809 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the public utility taxable activity growth rates reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - 20% of the trips are out-of-county. - Income from providing these serv