The bill amends Section 44-18-36.1 of the General Laws regarding hotel taxes in the state. It introduces a five percent (5%) hotel tax on the total consideration charged for occupancy of residential dwellings rented in their entirety on a hosting platform, effective for rental activity on or after January 1, 2026, for a period of thirty (30) nights or less. This change removes the existing exemption for such rentals, making them subject to the hotel tax.

The bill also specifies that the hotel tax is in addition to any sales tax. It does not impose a local hotel tax; however, it grants the city of Newport the authority to collect the hotel tax from hotels within its jurisdiction and requires the city to report tax collections biannually to the division of taxation. The collected hotel tax will be distributed to the respective city or town where the hotel is located. The act is set to take effect upon passage, aiming to enhance tax revenue from short-term rentals and ensure compliance with local tax regulations.

Statutes affected:
45: 44-18-36.1