| 1 | 1 | | |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | 2025 -- S 0335 |
|---|
| 6 | 6 | | ======== |
|---|
| 7 | 7 | | LC001153 |
|---|
| 8 | 8 | | ======== |
|---|
| 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: Senators LaMountain, Murray, Bissaillon, and McKenney |
|---|
| 18 | 18 | | Date Introduced: February 21, 2025 |
|---|
| 19 | 19 | | Referred To: Senate Finance |
|---|
| 20 | 20 | | |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | It is enacted by the General Assembly as follows: |
|---|
| 23 | 23 | | SECTION 1. Section 44-18-36.1 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 | | 44-18-36.1. Hotel tax. 3 |
|---|
| 26 | 26 | | (a) There is imposed a hotel tax of five percent (5%) upon the total consideration charged 4 |
|---|
| 27 | 27 | | for occupancy of any space furnished by any hotel, travel packages, or room reseller or reseller as 5 |
|---|
| 28 | 28 | | defined in § 44-18-7.3(b) in this state. A house, condominium, or other resident dwelling shall be 6 |
|---|
| 29 | 29 | | exempt from the five percent (5%) hotel tax under this subsection if the house, condominium, or 7 |
|---|
| 30 | 30 | | other resident dwelling is rented in its entirety. The hotel tax is in addition to any sales tax imposed. 8 |
|---|
| 31 | 31 | | This hotel tax is administered and collected by the division of taxation and unless provided to the 9 |
|---|
| 32 | 32 | | contrary in this chapter, all the administration, collection, and other provisions of chapters 18 and 10 |
|---|
| 33 | 33 | | 19 of this title apply. Nothing in this chapter shall be construed to limit the powers of the convention 11 |
|---|
| 34 | 34 | | authority of the city of Providence established pursuant to the provisions of chapter 84 of the public 12 |
|---|
| 35 | 35 | | laws of 1980, except that distribution of hotel tax receipts shall be made pursuant to chapter 63.1 13 |
|---|
| 36 | 36 | | of title 42 rather than chapter 84 of the public laws of 1980. 14 |
|---|
| 37 | 37 | | (b) There is hereby levied and imposed, upon the total consideration charged for occupancy 15 |
|---|
| 38 | 38 | | of any space furnished by any hotel in this state, in addition to all other taxes and fees now imposed 16 |
|---|
| 39 | 39 | | by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be administered and 17 |
|---|
| 40 | 40 | | collected in accordance with subsection (a). 18 |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | |
|---|
| 43 | 43 | | LC001153 - Page 2 of 3 |
|---|
| 44 | 44 | | (c) All sums received by the division of taxation from the local hotel tax, penalties or 1 |
|---|
| 45 | 45 | | forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid 2 |
|---|
| 46 | 46 | | by the state treasurer to the city or town where the space for occupancy that is furnished by the 3 |
|---|
| 47 | 47 | | hotel is located. Unless provided to the contrary in this chapter, all of the administration, collection, 4 |
|---|
| 48 | 48 | | and other provisions of chapters 18 and 19 of this title shall apply. 5 |
|---|
| 49 | 49 | | (d) Notwithstanding the provisions of subsection (a) of this section, the city of Newport 6 |
|---|
| 50 | 50 | | shall have the authority to collect from hotels located in the city of Newport the tax imposed by 7 |
|---|
| 51 | 51 | | subsection (a) of this section. 8 |
|---|
| 52 | 52 | | (1) Within ten (10) days of collection of the tax, the city of Newport shall distribute the tax 9 |
|---|
| 53 | 53 | | as provided in § 42-63.1-3. No later than the first day of March and the first day of September in 10 |
|---|
| 54 | 54 | | each year in which the tax is collected, the city of Newport shall submit to the division of taxation 11 |
|---|
| 55 | 55 | | a report of the tax collected and distributed during the six (6) month period ending thirty (30) days 12 |
|---|
| 56 | 56 | | prior to the reporting date. 13 |
|---|
| 57 | 57 | | (2) The city of Newport shall have the same authority as the division of taxation to recover 14 |
|---|
| 58 | 58 | | delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty and 15 |
|---|
| 59 | 59 | | interest imposed by the city of Newport until collected constitutes a lien on the real property of the 16 |
|---|
| 60 | 60 | | taxpayer. 17 |
|---|
| 61 | 61 | | SECTION 2. This act shall take effect upon passage and apply to rentals occurring on or 18 |
|---|
| 62 | 62 | | after January 1, 2026. 19 |
|---|
| 63 | 63 | | ======== |
|---|
| 64 | 64 | | LC001153 |
|---|
| 65 | 65 | | ======== |
|---|
| 66 | 66 | | |
|---|
| 67 | 67 | | |
|---|
| 68 | 68 | | LC001153 - Page 3 of 3 |
|---|
| 69 | 69 | | EXPLANATION |
|---|
| 70 | 70 | | BY THE LEGISLATIVE COUNCIL |
|---|
| 71 | 71 | | OF |
|---|
| 72 | 72 | | A N A C T |
|---|
| 73 | 73 | | RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND |
|---|
| 74 | 74 | | COMPUTATION |
|---|
| 75 | 75 | | *** |
|---|
| 76 | 76 | | This act would remove the exemption from the state hotel tax for residences rented in their 1 |
|---|
| 77 | 77 | | entirety. 2 |
|---|
| 78 | 78 | | This act would take effect upon passage and apply to rentals occurring on or after January 3 |
|---|
| 79 | 79 | | 1, 2026. 4 |
|---|
| 80 | 80 | | ======== |
|---|
| 81 | 81 | | LC001153 |
|---|
| 82 | 82 | | ======== |
|---|
| 83 | 83 | | |
|---|