2024 -- H 8183

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LC005926

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TAXATION -- SALES AND USE TAXES--LIABILITY AND

COMPUTATION

     Introduced By: Representatives Carson, Cortvriend, McGaw, Spears, and Slater

     Date Introduced: April 18, 2024

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-18-36.1 of the General Laws in Chapter 44-18 entitled "Sales and

Use Taxes — Liability and Computation" is hereby amended to read as follows:

     44-18-36.1. Hotel tax Hotel, house and condominium rental tax.

     (a) There is imposed a hotel tax and house and condominium rental tax of five percent (5%)

upon the total consideration charged for occupancy of any space furnished for the rental of a house

or condominium or by any hotel, travel packages, or room reseller or reseller as defined in § 44-

18-7.3(b) in this state. A house, condominium, or other resident dwelling shall be exempt from the

five percent (5%) hotel tax under this subsection if the house, condominium, or other resident

dwelling is rented in its entirety. The hotel tax imposed by the provisions of this section is in

addition to any sales tax imposed. This hotel tax is imposed by the provisions of this section shall

be administered and collected by the division of taxation and unless provided to the contrary in this

chapter, all the administration, collection, and other provisions of chapters 18 and 19 of this title

apply. Nothing in this chapter shall be construed to limit the powers of the convention authority of

the city of Providence established pursuant to the provisions of chapter 84 of the public laws of

1980, except that distribution of hotel tax receipts for taxes imposed pursuant to the provisions of

this section, shall be made pursuant to chapter 63.1 of title 42 rather than chapter 84 of the public

laws of 1980.

     (1) All sums received by the division of taxation from the tax imposed pursuant to the

provisions of this section for the rental of a house or condominium, including penalties, forfeitures,

interest, costs of suit and fines, shall be distributed at least quarterly, credited and paid by the state

treasurer to the city or town where the house or condominium is located.

     (2) All sums collected pursuant to subsection (a)(1) of this section shall be used exclusively

for municipal infrastructure improvements, riverine and coastal resiliency and housing.

     (b) There is hereby levied and imposed, upon the total consideration charged for occupancy

of any space furnished by any hotel in this state, in addition to all other taxes and fees now imposed

by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be administered and

collected in accordance with subsection (a).

     (c) All sums received by the division of taxation from the local hotel tax, penalties or

forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid

by the state treasurer to the city or town where the space for occupancy that is furnished by the

hotel is located. Unless provided to the contrary in this chapter, all of the administration, collection,

and other provisions of chapters 18 and 19 of this title shall apply.

     (d) Notwithstanding the provisions of subsection (a) of this section, the city of Newport

shall have the authority to collect from hotels located in the city of Newport the tax imposed by

subsection (a) of this section.

     (1) Within ten (10) days of collection of the tax, the city of Newport shall distribute the tax

as provided in § 42-63.1-3. No later than the first day of March and the first day of September in

each year in which the tax is collected, the city of Newport shall submit to the division of taxation

a report of the tax collected and distributed during the six (6) month period ending thirty (30) days

prior to the reporting date.

     (2) The city of Newport shall have the same authority as the division of taxation to recover

delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty and

interest imposed by the city of Newport until collected constitutes a lien on the real property of the

taxpayer.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- SALES AND USE TAXES--LIABILITY AND

COMPUTATION

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     This act would impose a tax of five percent (5%) upon the rental of a house or

condominium. The funds from the tax would be used exclusively for infrastructure improvements,

riverine and coastal resiliency and housing.

     This act would take effect upon passage.

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