Transportation Network Company Assessments
On May 12, 2015, SB 868 was enacted to revise the Public Utilities Article by adding a regulatory framework for "transportation network services" that encompasses "transportation network companies and transportation network operators." The Act authorizes certain counties or municipalities to impose an assessment on transportation network services that originate in the county or municipality.
Except in an exempt jurisdiction, an assessment may not exceed 25 cents per trip. An exempt jurisdiction is a county or municipality that imposed a tax, fee, or charge on for-hire transportation services provided on a per-ride or per-passenger basis operated in that county or municipality on or before January 1, 2015.
The Act requires a county or municipality that imposes an assessment to notify the Comptroller of the amount of the assessment and any change in the assessment. A licensed transportation network company must: collect assessments on behalf of its drivers; collect any assessment, fee, charge, or tax imposed by an exempt jurisdiction on a transportation network service; and submit to the Comptroller (1) the assessments and other revenues collected by the transportation network company on behalf of the drivers; (2) the allocation of the assessments and other revenues attributable to each county or municipality that has imposed an assessment; and (3) under oath, a certification that it has submitted the correct amount of assessments and revenues to the Comptroller no later than 30 days after the end of a calendar quarter.
The Comptroller is then required to distribute the remaining revenue to the county or municipality that is the source of the revenue, within 45 days of the end of each quarter.
Transportation Network Service Rate Chart
For more information, see the Comptroller's Tax Alert for Transportation Network Services and For Hire Transportation.