Bill > S0045

This bill amends the existing state hotel tax law to remove the current exemption for entire houses, condominiums, or other residential dwellings rented through hosting platforms, starting January 1, 2026. Specifically, the bill will require owners who rent their entire property on a hosting platform (such as Airbnb or VRBO) for 30 nights or less to pay a 5% hotel tax. Currently, these properties are exempt from the hotel tax. A hosting platform is defined in a separate statute (§ 42-63.1-2(5)), and the tax is in addition to any existing sales taxes. The bill maintains all other existing provisions of the hotel tax law, including how the tax is administered and collected by the division of taxation. The legislation will take effect immediately upon its passage, with the new tax requirements becoming applicable on January 1, 2026, giving property owners and hosting platforms time to prepare for the change.

Budget and Finance

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