Bill > S0418

This bill amends existing Rhode Island tax law to expand the definition of "room-seller" to include hosting platforms and imposes a 5% tax on house and condominium rentals. Specifically, the legislation broadens the definition of room-sellers to encompass any hosting platform or marketing organization that reserves or arranges accommodation occupancy. The new tax will apply to the total consideration charged for renting a house or condominium, and all funds collected from this tax will be exclusively distributed to the city or town where the property is located. These funds must be used specifically for municipal infrastructure improvements, riverine and coastal resiliency projects, and housing initiatives. The bill requires that the tax be collected and administered by the division of taxation, with distributions made at least quarterly to the respective municipalities. The tax is in addition to existing sales taxes and is designed to provide local governments with a dedicated revenue stream for critical infrastructure and housing needs. The legislation takes effect immediately upon passage.

Budget and Finance

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