The bill amends Section 44-18-36.1 of the General Laws regarding hotel taxes in the state. It introduces a new hotel tax of five percent (5%) on the total consideration charged for occupancy of spaces furnished by hotels, travel packages, or room resellers. Notably, the bill removes the previous exemption for houses, condominiums, or other residential dwellings rented in their entirety on hosting platforms for rental activities on or after January 1, 2026, for a period of thirty (30) nights or less, making them subject to the five percent (5%) hotel tax. Additionally, a local hotel tax of one percent (1%) is imposed, which will be administered and collected similarly to the state hotel tax.

The bill also grants the city of Newport the authority to collect the hotel tax from hotels located within its jurisdiction and requires the city to distribute the collected tax within ten days. Furthermore, the city must report the tax collected and distributed every six months. The provisions for the administration and collection of these taxes will follow the existing regulations outlined in chapters 18 and 19 of the title. The act is set to take effect upon passage.

Statutes affected:
45: 44-18-36.1