New NC Laws Bring Rideshare Tax, Digital IDs Starting July 1

NC will add a tax to rideshare fares and legally recognize mobile driver's licenses as valid forms of ID.

North Carolina State Capitol Building — Source: 4nadia / Getty

Two new laws take effect July 1 in North Carolina, affecting how residents travel and verify their identity.

First, a new Transportation Commerce Tax will be added to all rides booked through Uber, Lyft, and traditional taxi services. The small fee, which will show up on receipts like sales tax, will help fund road and bridge repairs across the state through the North Carolina Highway Fund.

“If you control who’s in the car with you, that’s gonna be treated as an exclusive ride service,” Andrew Furuseth, director of the Sales Tax Division at NCDOR, said. “The shared ride service, which is at the 1% rate, is if the taxi company or the transportation network company is putting you in the car with somebody else.”

Second, mobile driver’s licenses will now be legally recognized as valid ID.

The change, authorized by House Bill 199 and signed into law in 2024, allows digital licenses to be used in place of physical ones. While the NCDMV hasn’t opened registration yet, the law sets the groundwork for future use at airports, by law enforcement, and for age-restricted purchases.

Source: WCNC