State Ride Share Tax Begins July 1

The N.C. Department of Revenue (NCDOR) will begin administering the new Transportation Commerce Tax later this year.
The tax will apply to ride services provided by taxis and transportation network companies beginning on July 1. The tax was passed in Session Law 2023-134.
Additional details about the tax include:
• Taxpayers (taxis or transportation network companies) will collect the tax from their customers beginning on July 1.
• Taxpayers must file Transportation Commerce Tax returns and pay the taxes directly to the NCDOR.
• Taxpayers must register with the NCDOR prior to July 1. They can find registration information at ncdor.gov
• The tax rates are 1.5 percent of the gross receipts for exclusive-ride service and 1.0 percent of the gross receipts for shared-ride service.
The NCDOR’s website, ncdor.gov, provides registration information, frequently asked questions, and other information about the new tax.