The bill amends Section 44-18-36.1 of the General Laws in Chapter 44-18, entitled "Sales and Use Taxes — Liability and Computation," to expand the existing hotel tax to include a house and condominium rental tax. The amendment imposes a five percent (5%) tax on the total consideration charged for the rental of a house or condominium, in addition to any space furnished by hotels, travel packages, or room resellers in the state. The previous exemption for entire house, condominium, or other resident dwelling rentals from the hotel tax has been removed. The tax is to be administered and collected by the division of taxation, and the provisions for administration, collection, and distribution are consistent with chapters 18 and 19 of the title, with the exception that tax receipts for taxes imposed by this section will be distributed according to chapter 63.1 of title 42 rather than chapter 84 of the public laws of 1980.

The bill specifies that all sums received from the new tax, including penalties, forfeitures, interest, costs of suit, and fines, will be distributed at least quarterly to the city or town where the rented property is located. These funds are to be used exclusively for municipal infrastructure improvements, riverine and coastal resiliency, and housing. The bill also maintains a local hotel tax at a rate of one percent (1%) and provides the city of Newport with the authority to collect and distribute the tax imposed by subsection (a) of this section. The act is set to take effect upon passage, and the funds from the tax are designated for specific uses related to infrastructure, environmental resiliency, and housing.

Statutes affected:
8183: 44-18-36.1