Rhode Island has issued a notice regarding legislation that imposes sales and use tax on transportation network (commonly referred to as ride sharing or ride sourcing) companies (such as Uber and Lyft), effective July 1, 2016. A “transportation network company” means an entity that uses a digital network to connect transportation network company riders to transportation network operators who provide prearranged rides. The legislation states that any transportation network company operating in Rhode Island is a retailer and must file a business application and registration form with the Division of Taxation; obtain a permit from the Division to make sales at retail, and charge, collect, and remit sales and use tax to the Division.(Notice 2016-02, Rhode Island Division of Taxation, June 30, 2016)