The bill proposes amendments to Section 44-18-7.3 of the General Laws in Chapter 44-18, which is concerned with "Sales and Use Taxes — Liability and Computation." The bill seeks to redefine "services" and update the list of businesses and services included in the definition of services for the purpose of sales and use tax. Notably, the bill removes taxicab services (previously listed under NAICS code 485310) from the list of taxable services, leaving only limousine services (NAICS code 485320) as taxable. Additionally, the bill eliminates pet care services (NAICS code 812910), except veterinary and testing laboratories services, from the definition of taxable services.

The bill also clarifies the tax obligations of room resellers or resellers, including those selling travel packages, and the manner in which sales and use tax, as well as hotel tax, should be collected and remitted. It specifies the responsibilities of hotels and room resellers in collecting taxes from occupants and the legal implications of tax remittance. Furthermore, the bill authorizes the tax administrator to issue rules and regulations to implement the provisions of this chapter. The act would take effect immediately upon passage, and its passage would result in the elimination of sales tax on taxi services and pet care services.

Statutes affected:
34: 44-18-7.3