Bill > H5314

This bill grants municipalities in Rhode Island the authority to impose a parking services sales tax on parking lots and parking structures that charge for parking. Specifically, cities and towns can pass ordinances to levy a tax of up to 7% on parking services, which is defined as offering a parking space in exchange for a fee. The tax would be in addition to existing taxes and would be collected by the state. Importantly, the revenue generated from this new tax would be exempt from the state's maximum tax levy limit calculation, meaning it would not count against a municipality's standard tax revenue caps. This provides local governments with a new potential source of revenue without being constrained by existing tax limitations. The bill is set to take effect on January 1, 2026, giving municipalities time to prepare and potentially develop implementing ordinances.

Budget and Finance

https://status.rilegislature.gov/