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 introduces a new hotel tax of five percent (5%) on the total consideration charged for occupancy of any space furnished by hotels, travel packages, or room resellers in the state, with an exemption for entire house, condominium, or other resident dwelling rentals. This tax is in addition to any existing sales tax and is to be administered and collected by the division of taxation. The bill also clarifies that the distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than chapter 84 of the public laws of 1980.

Furthermore, the bill imposes an additional local hotel tax of one percent (1%) and, specifically for the city of Newport, an extra local hotel tax of two and one-half percent (2.5%). The revenue from this additional tax in Newport is to be retained and used for public infrastructure and resiliency purposes. The city of Newport is granted the authority to collect this tax from hotels within its jurisdiction and is required to report on the tax collected and distributed semi-annually. The act also provides Newport with the same authority as the division of taxation to recover delinquent hotel taxes, with such taxes constituting a lien on the taxpayer's real property. The act is set to take effect upon passage.

Statutes affected:
8133: 44-18-36.1