The bill amends Section 42-63.1-14 of the General Laws in Chapter 42-63.1 entitled "Tourism and Development" to regulate the offering of residential units through hosting platforms for tourist or transient use. It stipulates that cities, towns, or municipalities in Rhode Island cannot prohibit owners from offering their units through such platforms, provided the platforms collect and remit sales and hotel taxes in compliance with specified sections of the law. Hosting platforms must also ensure that rental properties listed on their websites are registered with the Department of Business Regulation, providing necessary information for identification. The department is tasked with creating an online database for registered short-term rental units, and non-compliant property owners will face fines ranging from $250 to $1,000 depending on the duration of non-compliance.

Additionally, the bill introduces a new provision (subsection j) that imposes a 10% surcharge on the rental fee of properties offered on hosting platforms that comply with tax collection and remittance. This surcharge is to be collected and deposited into a restricted receipt account to fund homelessness initiatives, including housing production, lead hazard abatement, rental subsidies, housing retention assistance, and services and prevention assistance, with priority given to veterans. The bill would take effect immediately upon passage. The explanation by the Legislative Council clarifies that the purpose of the act is to impose this 10% surcharge to support homelessness initiatives.

Statutes affected:
5645: 42-63.1-14