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Division of Taxation

Prearranged Ride Surcharge Notice

Notice Transportation Network Company Prearranged Ride Surcharge (P.L. 2018, c. 47) Effective October 1, 2018

New legislation enacted on July 1, 2018, imposes a surcharge of $0.50 per ride on a transportation network company rider (“rider”) for any prearranged ride that begins and ends within the State occurring on or after October 1, 2018. A surcharge of $0.25 per ride is imposed on a rider for a shared ride that begins and ends within the State occurring on or after October 1, 2018.

Requirement to Collect the Prearranged Ride Surcharge
The surcharge is imposed on a rider and must be collected by the transportation network company and separately stated on the electronic receipt provided to the rider. The transportation network company must provide a rider with an electronic receipt within 48 hours following the completion of a prearranged ride.
The electronic receipt must contain the following information:

  • The location where the prearranged ride began and ended;
  • The total time and distance of the prearranged ride;
  • An itemization of the total fare paid, if any; and
  • The surcharge imposed ($0.25 or $0.50).

Definitions
A “transportation network company” is a business that uses a digital network to connect a rider to a driver (through the use of an app, webpage, text message, or other means) to provide a prearranged ride. A transportation network company does not include a business arranging non-emergency medical transportation for individuals qualifying for Medicaid or Medicare pursuant to a contract with the State or a managed care organization, whereby Medicaid or Medicare funding is used to pay for the non-emergency medical transportation services.

A “transportation network company rider” is a person who uses a transportation network company’s digital network to connect with a driver to receive a prearranged ride using the driver’s personal vehicle.

A “prearranged ride” is transportation provided by a transportation network company driver (“driver”) to a requesting rider. It begins when a driver accepts a ride requested through the transportation network company’s digital network, continues while the driver picks up and transports the rider, and ends when the rider exits the personal vehicle. A prearranged ride does not include transportation provided using an autocab, taxi, limousine, autobus, jitney, motor bus, or other for-hire vehicle regardless of how scheduled. A prearranged ride does not include ridesharing (e.g., car pools and van pools). See N.J.S.A. 39:1-1.

A “shared ride” means a prearranged ride in which:

  • Prior to the beginning of the prearranged ride, the rider requested to share the prearranged ride with one or more riders; and
  • The rider is charged a fare that is calculated, in part, based on the rider’s request to share all or part of the prearranged ride with one or more riders, regardless of whether the rider actually shares all or part of the ride with one or more riders.
Filing and payment

Beginning with the return period ending October 31, 2018, transportation network companies must file the Prearranged Ride Surcharge Return (Form PRS-100) and pay the amount due electronically on a monthly basis. Form PRS-100 is due on or before the 20th day of the month following the close of the calendar month for which the surcharge is due. Returns are required to be filed each month even if there were no receipts subject to the Prearranged Ride Surcharge for that particular month.

File and pay online.


Last Updated: Monday, 12/30/19