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 imposes a 5% hotel tax on the total consideration charged for occupancy of any space furnished by hotels, travel packages, or room resellers in the state. Previously, houses, condominiums, or other residential dwellings rented in their entirety were exempt from this tax. However, the bill introduces new language that removes this exemption for such dwellings rented on a hosting platform for rental activity on or after January 1, 2024, for a period of 30 nights or less, making them subject to the 5% hotel tax. The bill also maintains that the hotel tax is in addition to any sales tax imposed and outlines the administration and collection of the tax by the division of taxation.

Additionally, the bill specifies that a local hotel tax of 1% is levied and imposed on the total consideration charged for occupancy of any space furnished by any hotel in the state, in addition to other taxes and fees. The local hotel tax is to be administered and collected in accordance with the same subsection that governs the state hotel tax. The bill also details the distribution of the local hotel tax to the city or town where the hotel space is located and grants the city of Newport the authority to collect and distribute the tax imposed by the state, with the same authority as the division of taxation to recover delinquent hotel taxes. The act is set to take effect upon passage.

Statutes affected:
5475  SUB A: 44-18-36.1
5475: 44-18-36.1