2024 -- S 2410

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LC004304

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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 STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

     

     Introduced By: Senators LaMountain, Burke, and Bissaillon

     Date Introduced: February 12, 2024

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-63.1-2 and 42-63.1-14 of the General Laws in Chapter 42-63.1

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entitled "Tourism and Development" are hereby amended to read as follows:

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     42-63.1-2. Definitions.

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     For the purposes of this chapter:

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     (1) “Consideration” means the monetary charge for the use of space devoted to transient

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lodging accommodations.

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     (2) “Corporation” means the Rhode Island commerce corporation.

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     (3) “District” means the regional tourism districts set forth in § 42-63.1-5.

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     (4) “Hotel” means any facility offering a minimum of one (1) room for which the public

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may, for a consideration, obtain transient lodging accommodations. The term “hotel” shall include

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hotels, motels, tourist homes, tourist camps, lodging houses, and inns. The term “hotel” shall also

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include houses, condominiums or other residential dwelling units, regardless of the number of

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rooms, which are used and/or advertised for rent for occupancy. The term “hotel” shall not include

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schools, hospitals, sanitariums, nursing homes, and chronic care centers.

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     (5) “Hosting platform” means any electronic or operating system in which a person or

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entity provides a means through which an owner may offer a residential unit for “tourist or

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transient” use. This service is usually, though not necessarily, provided through an online or web-

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based system which generally allows an owner to advertise the residential unit through a hosted

 

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website and provides a means for a person or entity to arrange, or otherwise facilitate reservations

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for, tourist or transient use in exchange for payment, whether the person or entity pays rent directly

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to the owner or to the hosting platform. All hosting platforms are required to collect and remit the

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tax owed under this section.

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     (6) “Occupancy” means a person, firm or corporation’s use of space for transient lodging

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accommodations not to exceed thirty (30) days. Excluded from “occupancy” is the use of space for

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which the occupant has a written lease for the space, which lease covers a rental period of twelve

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(12) months or more. Furthermore, any house, condominium or other residential dwelling rented,

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for which the occupant has a documented arrangement for the space covering a rental period of

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more than thirty (30) consecutive days or for one calendar month is excluded from the definition

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of occupancy.

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     (7) “Tax” means the hotel tax imposed by § 44-18-36.1(a).

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     (8) “Owner” means any person who owns real property and is the owner of record. Owner

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shall also include a lessee where the lessee is offering a residential unit for “tourist or transient”

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use.

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     (9) “Residential unit” means a room or rooms, including a condominium or a room or a

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dwelling unit that forms part of a single, joint or shared tenant arrangement, in any building, or

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portion thereof, which is designed, built, rented, leased, let, or hired out to be occupied for non-

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commercial use.

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     (10) “Tour operator” means a person that derives a majority of his or her or its revenue by

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providing tour operator packages.

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     (11) “Tour operator packages” means travel packages that include the services of a tour

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guide and where the itinerary encompasses five (5) or more consecutive days.

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     (12) “Tourist or transient” means any use of a residential unit for occupancy for less than

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a thirty (30) consecutive day term of tenancy, or occupancy for less than thirty (30) consecutive

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days of a residential unit leased or owned by a business entity, whether on a short-term or long-

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terms basis, including any occupancy by employee or guests of a business entity for less than thirty

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(30) consecutive days where payment for the residential unit is contracted for or paid by the

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business entity.

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     42-63.1-14. Offering residential units through a hosting platform.

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     (a) For any rental property offered for tourist or transient use on a hosting platform that

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collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44-

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18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering

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the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform

 

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from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit

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for tourist or transient use. A hosting platform shall comply with the requirement imposed upon

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room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to

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apply. The division of taxation shall at the request of a city, town, or municipality confirm whether

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a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i).

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     (b) Any short-term rental property listed for rent on the website of any third-party hosting

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platform that conducts business in Rhode Island shall be registered with the department of business

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regulation. The registration shall provide the information necessary to identify the property

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pursuant to subsection (d) of this section. For purposes of this section, the term “short-term rental”

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means a person, firm, or corporation’s utilization, for transient lodging accommodations, not to

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exceed thirty (30) nights at a time.

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     (c) The department of business regulation shall contact all hosting platforms that list

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property in Rhode Island on their website for rent and that submit hotel taxes to the division of

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taxation and shall provide notice of the registration requirement, pursuant to this section, instructing

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the hosting platforms to notify their listed properties to register with the department of business

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regulation annually by December 31, 2021, or be subject to fines pursuant to § 42-63.1-14.1.

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     (d) The state registration pursuant to this section shall include:

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     (1) The principal place of business of the owner, or if outside the state, the agent for service

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of process or property manager for the owner;

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     (2) The phone number of the owner of the property and/or property manager;

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     (3) The email address of the property owner and/or property manager;

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     (4) The address of the rental property;

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     (5) The number of rooms for rent at the property;

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     (6) Whether the registrant rents or owns; and

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     (7) Intended use (entire space, private room, or shared space).

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     (e) The assigned registration number shall consist of numeric and alpha characters, the

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alpha characters shall correspond to the city/town where the property is located and shall be uniform

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for the remaining properties in said city/town.

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     (f) The department of business regulation shall notify all hosting platforms to contact all

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listed properties by December 31, 2021, to ensure compliance with this section The registration

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number shall be valid for the calendar year during which it is assigned, and if the a listed properties

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are property is not duly registered after six (6) months the expiration of the annual registration

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period, the hosting platform shall remove the property listing from its website.

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     (g) The department of business regulation shall promulgate rules and regulations to

 

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correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to

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property owners registering with the department pursuant to this section.

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     (h) The department of business regulation shall create an online database to store all

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registered short-term rental units, and each unit shall have an online identification number in said

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database to correspond with subsection (e) of this section.

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     (i) Any owner of the property who or that fails to register with the department of business

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regulation as prescribed herein and lists the property as a short-term rental on a hosting platform

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website shall be subject to a civil fine as follows:

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     (1) Two hundred fifty dollars ($250) for the first thirty (30) days of non-compliance;

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     (2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of non-

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compliance; and

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     (3) One thousand dollars ($1,000) for more than sixty (60) days of non-compliance.

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     (j) Notwithstanding any other law or provision to the contrary, no hosting platform shall

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list any residence for short-term rental for tourist or transient use without the property’s current,

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valid registration number, and its expiration date, which shall be displayed on the listing. Any

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hosting platform that offers short-term rental of residential property for tourist or transient use

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without displaying the current, valid registration number of a property, and its expiration date, shall

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be subject to a civil fine of two hundred fifty dollars ($250) per day per violation, with each property

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listing constituting a separate violation.

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     (k) A hosting platform shall provide to the department of business regulation, on a monthly

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basis, an electronic report, in a format determined by the department of business regulation, of the

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listings maintained, authorized, facilitated or advertised by the hosting platform within the state for

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the applicable reporting period. The report shall include a breakdown of where the listings are

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located, whether the listing is for a room or a whole unit, and shall include the number of nights

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each unit was reported as occupied during the applicable reporting period.

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     SECTION 2. 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 STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

***

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     This act would require hosting platforms offering short-term rental of residential property

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for tourist or transient use to disclose on listings the current, valid registration number and its

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expiration date.

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     This act would take effect on January 1, 2025.

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