2017 -- H 5771

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LC001877

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO TAXATION - SALES AND USE TAXES

     

     Introduced By: Representatives Almeida, Regunberg, Ajello, Williams, and Lombardi

     Date Introduced: March 01, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

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     44-18-36.1. Hotel tax.

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     (a) There is imposed a hotel tax of five percent (5%) upon the total consideration charged

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for occupancy of any space furnished by any hotel, travel packages, or room reseller or reseller as

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defined in § 44-18-7.3(b) in this state. A house, condominium, or other resident dwelling shall be

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

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other resident dwelling is rented in its entirety to one renting party for a period of at least thirty

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(30) days. The hotel tax is in addition to any sales tax imposed. This hotel tax is administered and

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collected by the division of taxation and unless provided to the contrary in this chapter, all the

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administration, collection, and other provisions of chapters 18 and 19 of this title apply. Nothing

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in this chapter shall be construed to limit the powers of the convention authority of the city of

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Providence established pursuant to the provisions of chapter 84 of the public laws of 1980, except

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that distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than

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chapter 84 of the public laws of 1980.

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

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

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now imposed by law, a local hotel tax at a rate of one percent (1%) two and one-half percent

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(2.5%). The local hotel tax shall be administered and collected in accordance with subsection (a).

 

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

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

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

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

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

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

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

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subsection (a) of this section.

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

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

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

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

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(30) days prior to the reporting date.

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

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

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

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of the taxpayer.

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     In recognition of the work being performed by the Streamlined Sales and Use Tax

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Governing Board, upon any federal law which requires remote sellers to collect and remit taxes,

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effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate

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imposed under § 44-18-36.1(b) shall be one and one-half percent (1.5%).

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     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

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     This act would raise the local hotel tax rate from one percent (1%) to two and one-half

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percent (2.5%). The act also subjects resident dwellings to the five percent (5%) hotel tax if the

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dwelling is rented for less than thirty (30) consecutive days.

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     This act would take effect upon passage.

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LC001877

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