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Ride Services to Collect and Remit Tax Under New Law
The North Carolina Department of Revenue (NCDOR) will begin administering the new Transportation Commerce Tax on July 1, 2025, affecting taxis and transportation network companies across the state.
Key Details of the New Tax
- Applies to ride services provided by taxis and app-based transportation companies.
- Tax rates:
- 1.5% on exclusive-ride services (e.g., solo passenger rides).
- 1.0% on shared-ride services (e.g., carpool-style trips).
- Companies must register with the NCDOR before July 1, 2025 at ncdor.gov.
- Ride providers will collect the tax from customers and submit payments to the state.
Next Steps for Affected Businesses
The NCDOR website offers registration details, filing requirements, and FAQs for impacted businesses. Companies must ensure compliance with tax collection and reporting obligations before the deadline.
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