The bill amends Section 44-18-36.1 of the General Laws regarding the imposition of a hotel tax in the state. It establishes a five percent (5%) hotel tax on the total consideration charged for occupancy of any space furnished by hotels, travel packages, or room resellers. The bill removes the previous exemption for houses, condominiums, or other residential dwellings rented in their entirety from this hotel tax. The hotel tax is in addition to any sales tax imposed.

The act also includes provisions for a local hotel tax of one percent (1%) on the same total consideration, with administration and collection procedures mirroring those of the state hotel tax. Additionally, the city of Newport is granted the authority to collect the hotel tax and is required to distribute the collected tax within ten days. Newport must report the tax collected and distributed biannually to the division of taxation. The act is set to take effect on January 1.

Statutes affected:
5476: 44-18-36.1