The bill amends the General Laws concerning sales and use taxes by redefining "services" and broadening the range of taxable activities. It introduces new classifications for transportation services, including taxicabs, limousines, and transportation network companies (TNCs), which are now recognized as retailers required to register and remit sales and use tax. Additionally, the bill establishes definitions for "room resellers" and "resellers," which include entities that facilitate accommodation rentals, such as hotels and vacation rentals, mandating them to collect and remit applicable taxes based on the fees charged to occupants. The previous exemption for houses and condominiums from the hotel tax has been removed, making these rentals subject to the same tax obligations as hotels.

The bill also implements a hotel tax, now termed the hotel, house, and condominium rental tax, set at five percent on total occupancy consideration, alongside a local hotel tax of one percent. The tax will be administered by the division of taxation, with proceeds distributed quarterly to the respective municipalities for infrastructure improvements and housing initiatives. Furthermore, the city of Newport is granted the authority to directly collect the hotel tax from hotels within its jurisdiction, with the power to recover delinquent taxes, which will be treated as a lien on the taxpayer's real property. The act will take effect upon passage.