RI
Rhode Island House Bill H6350

Rhode Island 2025 Regular Session

Rhode Island House Bill H6350

Introduced
5/16/25  

Caption

Allows communities to increase their local share of hotel tax collection by an additional two percent (2%).

Impact

If implemented, the changes introduced by H6350 will have a tangible impact on local governments, particularly those reliant on tourism as a significant source of income. This increase in the local hotel tax collection could provide municipalities with increased funding for public services, infrastructure, or community programs. The enactment of this law would further formalize the state’s commitment to empowering local entities by allowing them greater control over how they manage and benefit from hotel taxes, which is crucial for local governance and economic development.

Summary

House Bill 6350 seeks to amend the current laws regarding hotel taxation in Rhode Island, allowing communities to increase their local share of hotel tax collection by an additional two percent. This bill is framed within the context of enhancing local revenue generated from hotels, travel packages, and room resellers. The amendment would impose a new local hotel tax structure, which supplements the existing five percent state hotel tax already established under the law. The new tax rates would aim to give municipalities greater flexibility in managing their financial resources derived from tourism.

Contention

Notable contention may arise around the distribution and administration of these increased tax revenues. There might be concerns among some stakeholders regarding how the additional funds will be used by local governments. Potential debates could center on the effectiveness of this measure in supporting local economic growth versus the possibility of deterring tourism if the tax burden becomes too high for visitors. Additionally, the provision allowing the city of Newport to collect its own hotel tax may spark discussions about the equity and fairness of taxation across different communities within Rhode Island.

Companion Bills

No companion bills found.

Previously Filed As

RI S3033

Imposes an additional local hotel tax in the city of Newport, at a rate of two and one-half percent (2.5%) to be retained and used for its public infrastructure and resiliency purposes.

RI H8133

Imposes an additional local hotel tax in the city of Newport, at a rate of two and one-half percent (2.5%) to be retained and used for its public infrastructure and resiliency purposes.

RI S2062

Removes the exemption from the state hotel tax for residences rented in their entirety. Effective 1/1/2025.

RI H8057

Removes the exemption from the state hotel tax for residences rented in their entirety. Effective 1/1/2025.

RI H8183

Imposes a tax of five percent (5%) upon the rental of a house or condominium. The funds from the tax to be used exclusively for infrastructure improvements, riverine and coastal resiliency and housing.

RI H5475

Sales And Use Taxes -- Liability And Computation

RI S0095

Sales And Use Taxes -- Liability And Computation

RI H7688

Redirects the distribution of the hotel tax money generated in the South County regional tourism district.

RI S2343

Redirects the distribution of the hotel tax money generated in the South County regional tourism district.

RI H8267

Allocates five percent (5%) of revenues from the local meals and beverage tax to the Rhode Island Semiquincentennial (R.I. 250) Commission for the execution of its duties from July 1, 2024 to December 31, 2026.

Similar Bills

No similar bills found.