2023 -- S 0587
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LC001926
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO TOWNS AN D CITIES -- SHORT-TERM RENTAL COMMUNIT Y IMPACT
FEE
Introduced By: Senators Euer, DiMario, Sosnowski, Gu, Ujifusa, Valverde, Lauria, and
DiPalma
Date Introduced: March 07, 2023
Referred To: Senate Housing & Municipal Government
It is enacted by the General Assembly as follows:
SECTION 1. Legislative findings. 1
The general assembly hereby finds that: 2
(1) An equitable program is needed for addressing the impact short-term rental of entire 3
residences have on the public health, safety and general welfare of the citizens of this state. 4
(2) It is therefore the public policy of the state and in the public interest that cities and 5
towns are authorized to impose fees defined herein as impact fees for the operation of short-term 6
rental of entire residences within their jurisdictional limits. 7
(3) It is the intent of the general assembly by enactment of this act to: 8
(i) Ensure that adequate public resources are available to address municipal expenses and 9
community impacts incurred by the operation of short-term rental of entire residences. 10
(ii) Promote growth and development of new housing units to address those displaced by 11
the operation of short-term rentals of entire residences. 12
(iii) Empower towns and cities to adopt ordinances to impose short-term rental community 13
impact fees. 14
SECTION 2. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby 15
amended by adding thereto the following chapter: 16
CHAPTER 71 17
SHORT-TERM RENTAL COMMUNITY IMPACT FEE 18
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45-71-1. Title. 1
This chapter shall be known and may be cited as the "Short-Term Rental Community 2
Impact Fee Act". 3
45-71-2. Establishment of short-term rental community impact fee. 4
Upon the enactment of a local ordinance, a city or town may impose a short-term rental 5
community impact fee of not more than two percent (2%) of the total consideration charged for 6
occupancy of a house, condominium, or other resident dwelling that is rented in its entirety for less 7
than thirty-one (31) consecutive days. The short-term rental community impact fee is in addition to 8
any sales tax and hotel tax imposed, and shall be administered, collected and distributed in the same 9
manner as provided in ยง 44-18-36.1. 10
45-71-3. Use of short-term rental community impact fees. 11
A city or town shall only use short-term rental community impact fees collected under this 12
section on: 13
(1) Local infrastructure projects; 14
(2) Municipal matching funds for grants issued under chapter 11.4 of title 42 ("The Rhode 15
Island municipal infrastructure grant program"); 16
(3) Costs associated with development, renovation or repair of housing units; or 17
(4) Non-ordinary municipal expenses incurred by the operation of short-term rentals of 18
entire residences. 19
SECTION 3. This act shall take effect on January 1, 2024. 20
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TOWNS AN D CITIES -- SHORT-TERM RENTAL COMMUNIT Y IMPACT
FEE
***
This act would enable cities and towns to impose an impact fee of two percent (2%) on the 1
total consideration charged for occupancy of a house, condominium, or other resident dwelling that 2
is rented in its entirety for less than thirty-one (31) consecutive days. 3
This act would take effect on January 1, 2024. 4
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