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 any space 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 from this hotel tax. Additionally, a local hotel tax of one percent (1%) is imposed on the same occupancy charges, with provisions for its administration and collection mirroring those of the state hotel tax.

Furthermore, the bill grants the city of Newport the authority to collect the hotel tax directly from hotels within its jurisdiction, with specific reporting requirements for tax collection and distribution. The collected local hotel tax will be distributed quarterly to the respective city or town where the hotel is located. The act is set to take effect on January 1, 2026.

Statutes affected:
5476: 44-18-36.1