Chapter 413
2024 -- S 2410 SUBSTITUTE A AS AMENDED
Enacted 06/28/2024

A N   A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT

Introduced By: Senators LaMountain, Burke, and Bissaillon

Date Introduced: February 12, 2024

It is enacted by the General Assembly as follows:
     SECTION 1. Sections 42-63.1-2 and 42-63.1-14 of the General Laws in Chapter 42-63.1
entitled "Tourism and Development" are hereby amended to read as follows:
     42-63.1-2. Definitions.
     For the purposes of this chapter:
     (1) “Consideration” means the monetary charge for the use of space devoted to transient
lodging accommodations.
     (2) “Corporation” means the Rhode Island commerce corporation.
     (3) “District” means the regional tourism districts set forth in § 42-63.1-5.
     (45) “Hotel” means any facility offering a minimum of one (1) room for which the public
may, for a consideration, obtain transient lodging accommodations. The term “hotel” shall include
hotels, motels, tourist homes, tourist camps, lodging houses, and inns. The term “hotel” shall also
include houses, condominiums, or other residential dwelling units, regardless of the number of
rooms, which are used and/or advertised for rent for occupancy. The term “hotel” shall not include
schools, hospitals, sanitariums, nursing homes, and chronic care centers.
     (54) “Hosting platform” means any electronic or operating system in which a person or
entity provides a means through which an owner may offer a residential unit for “tourist or
transient” use. This service is usually, though not necessarily, provided through an online or web-
based system which generally allows an owner to advertise the residential unit through a hosted
website and provides a means for a person or entity to arrange, or otherwise facilitate reservations
for, tourist or transient use in exchange for payment, whether the person or entity pays rent directly
to the owner or to the hosting platform. All hosting platforms are required to collect and remit the
tax owed under this section.
     (6) “Occupancy” means a person, firm, or corporation’s use of space for transient lodging
accommodations not to exceed thirty (30) days. Excluded from “occupancy” is the use of space for
which the occupant has a written lease for the space, which lease covers a rental period of twelve
(12) months or more. Furthermore, any house, condominium, or other residential dwelling rented,
for which the occupant has a documented arrangement for the space covering a rental period of
more than thirty (30) consecutive days or for one calendar month is excluded from the definition
of occupancy.
     (79) “Tax” means the hotel tax imposed by § 44-18-36.1(a).
     (87) “Owner” means any person who owns real property and is the owner of record. Owner
shall also include a lessee where the lessee is offering a residential unit for “tourist or transient”
use.
     (98) “Residential unit” means a room or rooms, including a condominium or a room or a
dwelling unit that forms part of a single, joint, or shared tenant arrangement, in any building, or
portion thereof, which is designed, built, rented, leased, let, or hired out to be occupied for non-
commercial use.
     (1011) “Tour operator” means a person that derives a majority of his or hertheir or its
revenue by providing tour operator packages.
     (1112) “Tour operator packages” means travel packages that include the services of a tour
guide and where the itinerary encompasses five (5) or more consecutive days.
     (1210) “Tourist or transient” means any use of a residential unit for occupancy for less than
a thirty (30) consecutive day term of tenancy, or occupancy for less than thirty (30) consecutive
days of a residential unit leased or owned by a business entity, whether on a short-term or long-
termsterm basis, including any occupancy by employeeemployees or guests of a business entity
for less than thirty (30) consecutive days where payment for the residential unit is contracted for or
paid by the business entity.
     42-63.1-14. Offering residential units through a hosting platform.
     (a) For any rental property offered for tourist or transient use on a hosting platform that
collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44-
18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering
the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform
from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit
for tourist or transient use. A hosting platform shall comply with the requirement imposed upon
room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to
apply. The division of taxation shall at the request of a city, town, or municipality confirm whether
a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i).
     (b) Any short-term rental property listed for rent on the website of any third-party hosting
platform that conducts business in Rhode Island shall be registered with the department of business
regulation. The registration shall provide the information necessary to identify the property
pursuant to subsection (d) of this section. For purposes of this section, the term “short-term rental”
means a person, firm, or corporation’s utilization, for transient lodging accommodations, not to
exceed thirty (30) nights at a time.
     (c) The department of business regulation shall contact all hosting platforms that list
property in Rhode Island on their website for rent and that submit hotel taxes to the division of
taxation and/or the city of Newport and shall provide notice of the registration requirement,
pursuant to this section, instructing the hosting platforms to notify their listed properties to register
with the department of business regulation annually by December 31, 2021, or be subject to fines
pursuant to § 42-63.1-14.1. Provided further, renewals of registrations pursuant to this section shall
become due for renewal on the anniversary date of the original registration.
     (d) The state registration pursuant to this section shall include:
     (1) The principal place of business of the owner, or if outside the state, the agent for service
of process or property manager for the owner;
     (2) The phone number of the owner of the property and/or property manager;
     (3) The email address of the property owner and/or property manager;
     (4) The address of the rental property;
     (5) The number of rooms for rent at the property;
     (6) Whether the registrant rents or owns; and
     (7) Intended use (entire space, private room, or shared space).
     (e) The assigned registration number shall consist of numeric and alpha characters, the
alpha characters shall correspond to the city/town where the property is located and shall be uniform
for the remaining properties in said city/town.
     (f) The department of business regulation shall notify all hosting platforms to contact all
listed properties by December 31, 2021, to ensure compliance with this section Registration forms
and/or any registration materials required by the department shall be completed prior to a listing by
a hosting platform. The registration number shall be valid for the year during which it is assigned,
and if the a listed properties are property is not duly registered after six (6) months the expiration
of the annual registration period, the hosting platform shall remove the property listing from its
website within fourteen (14) days of notification from the department.
     (g) The department of business regulation shall promulgate rules and regulations to
correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to
property owners registering with the department pursuant to this section.
     (h) The department of business regulation shall create an online database to store all
registered short-term rental units, and each unit shall have an online identification number in said
database to correspond with subsection (e) of this section.
     (i) Any owner of the property who or that fails to register with the department of business
regulation as prescribed herein and lists the property as a short-term rental on a hosting platform
website shall be subject to a civil fine as follows:
     (1) Two hundred fifty dollars ($250) for the first thirty (30) days of non-
compliancenoncompliance;
     (2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of non-
compliancenoncompliance; and
     (3) One thousand dollars ($1,000) for more than sixty (60) days of non-
compliancenoncompliance.
     (j) Notwithstanding any other law or provision to the contrary, no person shall list any
residence for short-term rental for tourist or transient use without the property’s current, valid
registration number, and its expiration date, which hosting platforms shall require to be displayed
on the listing advertisement. Any hosting platform that offers short-term rental of residential
property for tourist or transient use without requiring the owner to display the current, valid
registration number of a property, and its expiration date, shall be subject to a civil fine of two
hundred fifty dollars ($250) per day per violation, with each property listing constituting a separate
violation.
     (k) A hosting platform shall provide to the department of business regulation, on a quarterly
basis, an electronic report, in a format determined by the department of business regulation, of the
listings maintained, authorized, facilitated, or advertised by the hosting platform within the state
for the applicable reporting period. The report shall include a breakdown of the municipality where
the listings are located, whether the listing is for a room or a whole unit, the total number of short-
term rentals listed on the platform,, the registration number of each short-term rental listed on the
platform, the URL link of each short-term rental listed on the platform. and shall include the number
of nights each unit was reported as occupied during the applicable reporting period.
     SECTION 2. This act shall take effect on January 30, 2025.
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LC004304/SUB A
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