Rhode Island 2025 Regular Session

Rhode Island House Bill H5401 Compare Versions

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

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5	5	2025 -- H 5401
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7	7	LC000563
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
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: Representatives Place, Fascia, Paplauskas, Santucci, Roberts, and
18	18	Quattrocchi
19	19	Date Introduced: February 07, 2025
20	20	Referred To: House Finance
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 44-18-7.3 of the General Laws in Chapter 44-18 entitled "Sales and 1
25	25	Use Taxes — Liability and Computation" is hereby amended to read as follows: 2
26	26	44-18-7.3. Services defined. 3
27	27	(a) “Services” means all activities engaged in for other persons for a fee, retainer, 4
28	28	commission, or other monetary charge, which activities involve the performance of a service in this 5
29	29	state as distinguished from selling property. 6
30	30	(b) The following businesses and services performed in this state, along with the applicable 7
31	31	2017 North American Industrial Classification System (NAICS) codes, are included in the 8
32	32	definition of services: 9
33	33	(1) Taxicab and limousine services including but not limited to: 10
34	34	(i) Taxicab services including taxi dispatchers (485310); and 11
35	35	(ii) Limousine services (485320). 12
36	36	(2) Other road transportation service including but not limited to: 13
37	37	(i) Charter bus service (485510); 14
38	38	(ii) “Transportation network companies” (TNC) defined as an entity that uses a digital 15
39	39	network to connect transportation network company riders to transportation network operators who 16
40	40	provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15 17
41	41	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	LC000563 - Page 2 of 4
45	45	at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and 1
46	46	(iii) All other transit and ground passenger transportation (485999). 2
47	47	(3) Pet care services (812910) except veterinary and testing laboratories services. 3
48	48	(4)(i) “Room reseller” or “reseller” means any person, except a tour operator as defined in 4
49	49	§ 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as 5
50	50	defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the 6
51	51	reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion 7
52	52	of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include, 8
53	53	but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the 9
54	54	provisions of any other law, where said reservation or transfer of occupancy is done using a room 10
55	55	reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and 11
56	56	the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to 12
57	57	register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes, 13
58	58	with said taxes being calculated upon the amount of rental and other fees paid by the occupant to 14
59	59	the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller 15
60	60	or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the 16
61	61	amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant. 17
62	62	No assessment shall be made by the tax administrator against a hotel because of an incorrect 18
63	63	remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be 19
64	64	made by the tax administrator against a room reseller or reseller because of an incorrect remittance 20
65	65	of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter, 21
66	66	the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes. 22
67	67	If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller 23
68	68	or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the 24
69	69	occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and 25
70	70	other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant 26
71	71	to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same 27
72	72	manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or 28
73	73	reseller from the occupant under this chapter shall be stated and charged separately from the rental 29
74	74	and other fees, and shall be shown separately on all records thereof, whether made at the time the 30
75	75	transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the 31
76	76	room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the 32
77	77	occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller 33
78	78	shall represent to the occupant that the separately stated taxes charged by the room reseller or 34
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81	81	LC000563 - Page 3 of 4
82	82	reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a 1
83	83	room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit 2
84	84	pursuant to § 44-19-1. 3
85	85	(ii) “Travel package” means a room, or rooms, bundled with one or more other, separate 4
86	86	components of travel such as air transportation, car rental, or similar items, which travel package 5
87	87	is charged to the customer or occupant for a single, retail price. When the room occupancy is 6
88	88	bundled for a single consideration, with other property, services, amusement charges, or any other 7
89	89	items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire 8
90	90	single consideration shall be treated as the rental or other fees for room occupancy subject to tax 9
91	91	under this chapter; provided, however, that where the amount of the rental, or other fees for room 10
92	92	occupancy is stated separately from the price of such other property, services, amusement charges, 11
93	93	or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such 12
94	94	rental and other fees are determined by the tax administrator to be reasonable in relation to the 13
95	95	value of such other property, services, amusement charges, or other items, only such separately 14
96	96	stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any 15
97	97	room, or rooms, bundled as part of a travel package may be determined by the tax administrator 16
98	98	from the room reseller’s and/or reseller’s and/or hotel’s books and records that are kept in the 17
99	99	regular course of business. 18
100	100	(5) Investigation, Guard, and Armored Car Services (561611, 561612 & 561613). 19
101	101	(c) All services as defined herein are required to file a business application and registration 20
102	102	form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and 21
103	103	remit Rhode Island sales and use tax. 22
104	104	(d) The tax administrator is authorized to promulgate rules and regulations in accordance 23
105	105	with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of 24
106	106	this chapter. 25
107	107	SECTION 2. This act shall take effect upon passage. 26
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114	114	EXPLANATION
115	115	BY THE LEGISLATIVE COUNCIL
116	116	OF
117	117	A N A C T
118	118	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
119	119	COMPUTATION
120	120	***
121	121	This act would repeal pet care services from the services subject to sales tax as defined by 1
122	122	§§ 44-18-7(19) and 44-18-7.3(b)(3). 2
123	123	This act would take effect upon passage. 3
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