The bill amends sections of the General Laws in Chapter 42-63.1, titled "Tourism and Development," to introduce new definitions and regulations regarding short-term rentals. Key insertions include the definitions of "primary residence," which specifies that it is the location where the owner lives for at least seven months a year and is registered to vote, and "short-term rental," defined as a rental for transient lodging accommodations not exceeding thirty nights.

The bill mandates that any short-term rental property listed on a hosting platform must be registered with the Department of Business Regulation, which will maintain a database of registered units.

Additionally, the bill establishes a distinction between owner-occupied and non-owner-occupied short-term rentals for tax purposes. Properties registered as the owner's primary residence will be classified as residential real estate, while those that are not will be classified as commercial property. This differentiation aims to ensure appropriate tax treatment based on the nature of the rental property.

The act will take effect upon passage.