- Associated Press - Monday, March 23, 2015

PROVIDENCE, R.I. (AP) - Critics of Uber and Lyft say the ride-hailing apps aren’t paying Rhode Island sales tax on their services.

Lawmakers extended the state’s 7 percent sales tax in 2012 to previously exempt automobile ride-for-hire services.

The Providence Journal reports (https://bit.ly/1LNypMX) Terrence Mercer, associate administrator at the Division of Public Utilities and Carriers and a critic of the ride-hailing companies, said neither Uber not Lyft has registered to file sales tax. That was confirmed by the tax administrator.

Uber spokesman Matthew Wing said the company has been holding an undisclosed amount of state sales tax collected from local rides, but it’s temporary and the company intends to remit all sales tax eventually.

Lyft says it doesn’t collect sales tax in Rhode Island and it’s unclear how peer-to-peer platforms should be treated for tax purposes.


Information from: The Providence Journal, https://www.providencejournal.com

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