The bill amends Section 44-18-36.1 of the General Laws in Chapter 44-18, which pertains to "Sales and Use Taxes — Liability and Computation," specifically regarding the hotel tax. The amendment includes the insertion of the title "44-18-36.1. Hotel tax." and the deletion of an exemption that previously existed for houses, condominiums, or other residential dwellings rented in their entirety from the five percent (5%) hotel tax. The bill maintains that the hotel tax is in addition to any sales tax imposed and outlines that the tax is administered and collected by the division of taxation, with the same administrative, collection, and other provisions of chapters 18 and 19 of the title applying. It also specifies the distribution of hotel tax receipts according to chapter 63.1 of title 42.

Additionally, the bill imposes a local hotel tax of one percent (1%) on top of other taxes and fees for hotel space occupancy, which is to be administered and collected in accordance with the same subsection. The sums received from this local hotel tax are to be distributed quarterly to the city or town where the hotel space is located. The city of Newport is granted the authority to collect the tax imposed by subsection (a) from hotels within the city and is required to distribute the tax and report on the tax collected as specified. The city of Newport also has the authority to recover delinquent hotel taxes, with such taxes constituting a lien on the taxpayer's real property until collected. The act is set to take effect on January 1, 2024.

Statutes affected:
95: 44-18-36.1