2018 -- S 2393

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LC004497

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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, Sosnowski, Lynch Prata, Gallo, and Goodwin

     Date Introduced: February 15, 2018

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

"Tourism and Development" is hereby amended to read as follows:

     42-63.1-2. Definitions.

     For the purposes of this chapter:

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

lodging accommodations.

     (2) "Corporation" means the Rhode Island commerce corporation.

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

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

may, for a consideration, obtain transient lodging accommodations. The term "hotel" shall

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

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

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

not include schools, hospitals, sanitariums, nursing homes, and chronic care centers.

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

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

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

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

website and provides a means for a person or entity to arrange tourist or transient use in exchange

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

platform. All hosting platforms are required to collect and remit the tax owed under this section.

     (6) "Occupancy" means a person, firm or corporation's use of space for transient lodging

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

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

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

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

period of more than thirty (30) six (6) consecutive days or for one calendar month is excluded

from the definition of occupancy.

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

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

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

transient" use.

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

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

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

commercial use.

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

providing tour operator packages.

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

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

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

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

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

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

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

business entity.

     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 STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

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     This act would reduce the rental period from thirty (30) days to six (6) days in regard to

the exclusion from the definition of occupancy for any home, condominium or other residential

dwelling rented.

     This act would take effect upon passage.

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