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 in hotels, travel packages, or room resellers, while exempting entire rentals of houses, condominiums, or other residential dwellings from this tax. Additionally, a local hotel tax of one percent (1%) is imposed, with the possibility for local communities to levy an additional local hotel tax of up to two percent (2%). The administration and collection of these taxes will be managed by the division of taxation, and the distribution of tax receipts will follow specific guidelines outlined in the bill.

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 city will also have the same powers as the division of taxation to recover delinquent hotel taxes, which will constitute a lien on the real property of the taxpayer until collected. This act is set to take effect upon passage, allowing communities to enhance their local hotel tax revenue.

Statutes affected:
1046: 44-18-36.1