Ride-sharing and special needs transportation

From the 2024 DOR Tax Exemption Study

Home Forms & Publications Publications By Subject Special Notices Ride-share Vehicles Print Ride-share vehicles Issue Date August 19, 2021 Intended audience: Public transportation agencies, major employers, and employees of major employers purchasing rideshare vehicles, sellers of such vehicles, and ride-share operators. Beginning Sept. 1, 2021, the law provides new requirements for a sales and use tax exemption on purchases of vehicles to be used in certain ride-share programs, and broadens certain definitions. This Special Notice focuses on the sales and use tax exemptions for purchases of vehicles to be used in in certain ride-share programs. What qualifies? To qualify for a sales or use tax exemption, the passenger motor vehicle must: Have a seating capacity of three or more passengers, including the driver, when operated by a public transportation agency. Be used for ride sharing in the transport of at least five passengers when operated by any ride-sharing operator other than a public transportation agency. Be used for ride sharing for 36 consecutive months beginning from the date of purchase. Be operated in one of the following areas: The state’s eight largest counties that