The bill amends Section 44-18-36.1 of the General Laws in Chapter 44-18, which is related to "Sales and Use Taxes — Liability and Computation," specifically concerning the hotel tax. The amendment includes the insertion of a new 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 all the administration, collection, and other provisions of chapters 18 and 19 of this title applicable. Additionally, the bill specifies that a local hotel tax of one percent (1%) is levied and imposed on the total consideration charged for occupancy of any space furnished by any hotel in the state, which is also administered and collected in accordance with the same provisions.

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 the tax from hotels within the city. Newport is required to distribute the tax as provided and report the tax collected to the division of taxation semi-annually. The city of Newport is given the same authority as the division of taxation to recover delinquent hotel taxes, with unpaid taxes constituting a lien on the taxpayer's real property. The act is set to take effect on January 1, 2025. The explanation by the legislative council clarifies that the act's purpose is to remove the exemption from the state hotel tax for residences rented in their entirety and confirms the effective date.

Statutes affected:
8057: 44-18-36.1