The bill amends Section 44-18-36.1 of the General Laws regarding hotel taxes in the state. It establishes a local hotel tax at a rate of one percent (1%) on the total consideration charged for occupancy in hotels, travel packages, or room resellers. Additionally, it allows 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.

The bill also grants the city of Newport the authority to collect the hotel tax directly from hotels within its jurisdiction, with requirements for reporting and distribution of collected taxes. The city will have the same powers as the division of taxation to recover delinquent hotel taxes, which will constitute a lien on the taxpayer's real property until collected. This act is set to take effect upon passage.

Statutes affected:
6350: 44-18-36.1