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 total consideration, which will be administered and collected in accordance with the provisions outlined in the bill.

Furthermore, the bill grants the city of Newport the authority to collect the hotel tax and mandates that it distribute the collected tax within ten days. The city is also required to report the tax collected and distributed every six months. The act is set to take effect upon passage and will apply to rentals occurring on or after January 1, 2026. Overall, this legislation aims to expand the scope of the hotel tax to include previously exempt residential rentals, thereby increasing tax revenue for the state and local municipalities.