Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0083 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0083
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7	7	LC000851
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
16	16	COMPUTATION
17	17	Introduced By: Senators Felag, Euer, Pearson, Ciccone, and DiPalma
18	18	Date Introduced: February 01, 2023
19	19	Referred To: Senate Finance
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 44-18-7.3 of the General Laws in Chapter 44-18 entitled "Sales and 1
24	24	Use Taxes — Liability and Computation" is hereby amended to read as follows: 2
25	25	44-18-7.3. Services defined. 3
26	26	(a) “Services” means all activities engaged in for other persons for a fee, retainer, 4
27	27	commission, or other monetary charge, which activities involve the performance of a service in this 5
28	28	state as distinguished from selling property. 6
29	29	(b) The following businesses and services performed in this state, along with the applicable 7
30	30	2017 North American Industrial Classification System (NAICS) codes, are included in the 8
31	31	definition of services: 9
32	32	(1) Taxicab and limousine Limousine services (485320) including but not limited to: 10
33	33	(i) Taxicab services including taxi dispatchers (485310); and 11
34	34	(ii) Limousine services (485320). 12
35	35	(2) Other road transportation service including but not limited to: 13
36	36	(i) Charter bus service (485510); 14
37	37	(ii) “Transportation network companies” (TNC) defined as an entity that uses a digital 15
38	38	network to connect transportation network company riders to transportation network operators who 16
39	39	provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15 17
40	40	and is required to file a business application and registration form and obtain a permit to make sales 18
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44	44	at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and 1
45	45	(iii) All other transit and ground passenger transportation (485999). 2
46	46	(3) Pet care services (812910) except veterinary and testing laboratories services. 3
47	47	(4)(i) “Room reseller” or “reseller” means any person, except a tour operator as defined in 4
48	48	§ 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as 5
49	49	defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the 6
50	50	reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion 7
51	51	of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include, 8
52	52	but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the 9
53	53	provisions of any other law, where said reservation or transfer of occupancy is done using a room 10
54	54	reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and 11
55	55	the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to 12
56	56	register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes, 13
57	57	with said taxes being calculated upon the amount of rental and other fees paid by the occupant to 14
58	58	the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller 15
59	59	or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the 16
60	60	amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant. 17
61	61	No assessment shall be made by the tax administrator against a hotel because of an incorrect 18
62	62	remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be 19
63	63	made by the tax administrator against a room reseller or reseller because of an incorrect remittance 20
64	64	of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter, 21
65	65	the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes. 22
66	66	If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller 23
67	67	or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the 24
68	68	occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and 25
69	69	other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant 26
70	70	to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same 27
71	71	manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or 28
72	72	reseller from the occupant under this chapter shall be stated and charged separately from the rental 29
73	73	and other fees, and shall be shown separately on all records thereof, whether made at the time the 30
74	74	transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the 31
75	75	room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the 32
76	76	occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller 33
77	77	shall represent to the occupant that the separately stated taxes charged by the room reseller or 34
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81	81	reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a 1
82	82	room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit 2
83	83	pursuant to § 44-19-1. 3
84	84	(ii) “Travel package” means a room, or rooms, bundled with one or more other, separate 4
85	85	components of travel such as air transportation, car rental, or similar items, which travel package 5
86	86	is charged to the customer or occupant for a single, retail price. When the room occupancy is 6
87	87	bundled for a single consideration, with other property, services, amusement charges, or any other 7
88	88	items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire 8
89	89	single consideration shall be treated as the rental or other fees for room occupancy subject to tax 9
90	90	under this chapter; provided, however, that where the amount of the rental, or other fees for room 10
91	91	occupancy is stated separately from the price of such other property, services, amusement charges, 11
92	92	or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such 12
93	93	rental and other fees are determined by the tax administrator to be reasonable in relation to the 13
94	94	value of such other property, services, amusement charges, or other items, only such separately 14
95	95	stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any 15
96	96	room, or rooms, bundled as part of a travel package may be determined by the tax administrator 16
97	97	from the room reseller’s and/or reseller’s and/or hotel’s books and records that are kept in the 17
98	98	regular course of business. 18
99	99	(5) Investigation, Guard, and Armored Car Services (561611, 561612 & 561613). 19
100	100	(c) All services as defined herein are required to file a business application and registration 20
101	101	form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and 21
102	102	remit Rhode Island sales and use tax. 22
103	103	(d) The tax administrator is authorized to promulgate rules and regulations in accordance 23
104	104	with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of 24
105	105	this chapter. 25
106	106	SECTION 2. This act shall take effect upon passage. 26
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108	108	LC000851
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113	113	EXPLANATION
114	114	BY THE LEGISLATIVE COUNCIL
115	115	OF
116	116	A N A C T
117	117	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
118	118	COMPUTATION
119	119	***
120	120	This act would eliminate the sales tax on taxi services and pet care services. 1
121	121	This act would take effect upon passage. 2
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123	123	LC000851
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