2018 -- S 2100

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LC003851

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

     

     Introduced By: Senators Lombardi, Lynch Prata, Conley, Nesselbush, and Jabour

     Date Introduced: January 18, 2018

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-63.1-2 of the General Laws in Chapter 42-63.1 entitled

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"Tourism and Development" is 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

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include hotels, motels, tourist homes, tourist camps, lodging houses, and inns. The term "hotel"

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

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number of rooms, which are used and/or advertised for rent for occupancy. The term "hotel" shall

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not include 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 tourist or transient use in exchange

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for payment, whether the person or entity pays rent directly to the owner or to the hosting

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

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

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

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rented, for which the occupant has a documented arrangement for the space covering a rental

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

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definition of occupancy.

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     (7) "Tax" means the hotel tax imposed by subsection 44-18-36.1(a).

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

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Owner shall also include a lessee where the lessee is offering a residential unit for "tourist or

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transient" 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

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thirty (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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     SECTION 2. 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. The hotel tax is in addition to any sales tax

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imposed. This hotel tax is administered and collected by the division of taxation and unless

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provided to the contrary in this chapter, all the administration, collection, and other provisions of

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chapters 18 and 19 of this title apply. Nothing in this chapter shall be construed to limit the

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powers of the convention authority of the city of Providence established pursuant to the

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provisions of chapter 84 of the public laws of 1980, except that distribution of hotel tax receipts

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shall be made pursuant to chapter 63.1 of title 42 rather than chapter 84 of the public laws of

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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%). The local hotel tax shall be

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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 3. This act shall take effect upon passage.

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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 provide that houses, condominiums, or other residential dwelling units,

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regardless of the number of rooms, which are used and/or advertised for rent for occupancy

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would be exempt from the state sales or hotel tax.

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     This act would take effect upon passage.

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