2024 -- S 2020

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LC003555

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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 TOWNS AND CITIES -- SHORT-TERM RENTAL COMMUNITY IMPACT

FEE

     Introduced By: Senator Dawn M. Euer

     Date Introduced: January 10, 2024

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative findings.

     The general assembly hereby finds that:

     (1) An equitable program is needed for addressing the impact short-term rental of entire

residences have on the public health, safety and general welfare of the citizens of this state.

     (2) It is therefore the public policy of the state and in the public interest that cities and

towns are authorized to impose fees defined herein as impact fees for the operation of short-term

rental of entire residences within their jurisdictional limits.

     (3) It is the intent of the general assembly by enactment of this act to:

     (i) Ensure that adequate public resources are available to address municipal expenses and

community impacts incurred by the operation of short-term rental of entire residences.

     (ii) Promote growth and development of new housing units to address those displaced by

the operation of short-term rentals of entire residences.

     (iii) Empower towns and cities to adopt ordinances to impose short-term rental community

impact fees.

     SECTION 2. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 71

SHORT-TERM RENTAL COMMUNITY IMPACT FEE

     45-71-1. Title.

     This chapter shall be known and may be cited as the "Short-Term Rental Community

Impact Fee Act".

     45-71-2. Establishment of short-term rental community impact fee.

     Upon the enactment of a local ordinance, a city or town may impose a short-term rental

community impact fee of not more than two percent (2%) of the total consideration charged for

occupancy of a house, condominium, or other resident dwelling that is rented in its entirety for less

than thirty-one (31) consecutive days. The short-term rental community impact fee is in addition to

any sales tax and hotel tax imposed, and shall be administered, collected and distributed in the same

manner as provided in § 44-18-36.1.

     45-71-3. Use of short-term rental community impact fees.

     A city or town shall only use short-term rental community impact fees collected under this

section on:

     (1) Local infrastructure projects;

     (2) Municipal matching funds for grants issued under chapter 11.4 of title 42 ("The Rhode

Island municipal infrastructure grant program");

     (3) Costs associated with development, renovation or repair of housing units; or

     (4) Non-ordinary municipal expenses incurred by the operation of short-term rentals of

entire residences.

     SECTION 3. This act shall take effect on January 1, 2025.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- SHORT-TERM RENTAL COMMUNITY IMPACT

FEE

***

     This act would enable cities and towns to impose an impact fee of two percent (2%) on the

total consideration charged for occupancy of a house, condominium, or other resident dwelling that

is rented in its entirety for less than thirty-one (31) consecutive days.

     This act would take effect on January 1, 2025.

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