The bill amends Chapter 44-18 of the General Laws regarding sales and use taxes by introducing a new section, 44-18-41, which allows city or town councils to impose a tax on ticket sales for admission to large venues. A "large venue" is defined as any entertainment venue with a seating capacity of at least eight hundred (800) patrons. The tax rate is capped at seven percent (7%) per ticket and will be administered by the division of taxation, with the revenue being redistributed to the municipality where the venue is located.

Additionally, the bill specifies that the taxes collected under this new provision will not be included in the calculation of a municipality’s maximum levy increase as controlled by § 44-5-2. This legislation is designed to provide municipalities with a new revenue source while ensuring that the tax does not affect their existing tax limits. The act will take effect immediately upon passage.