Bill > S0335

This bill removes the current exemption from the state hotel tax for entire residential properties (such as houses, condominiums, and other dwellings) that are rented out. Currently, if a property is rented in its entirety, it is not subject to the 5% hotel tax, but this legislation would change that, requiring owners to pay the tax on such rentals. The bill specifies that the change will take effect on January 1, 2026, meaning that rentals occurring on or after that date will be subject to the hotel tax. This change could impact short-term rental platforms like Airbnb and VRBO, as well as property owners who rent out their entire homes or vacation properties, by requiring them to collect and remit the state's hotel tax. The tax is administered by the division of taxation and is in addition to any existing sales taxes, with the goal of generating additional revenue for the state.

Budget and Finance

https://status.rilegislature.gov/