AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Repeals pet care services from the services subject to sales tax as defined by §§ 44-18-7(19) and 44-18-7.3(b)(3).)

H7399

2026 -- H 7399
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LC004310
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
COMPUTATION

Introduced By:
Representatives Place, Hopkins, Fascia, Nardone, Santucci, and
Quattrocchi

Date Introduced:
January 28, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 44-18-7.3 of the General Laws in Chapter 44-18 entitled "Sales and
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Use Taxes — Liability and Computation" is hereby amended to read as follows:
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44-18-7.3. Services defined.
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(a) “Services” means all activities engaged in for other persons for a fee, retainer,
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commission, or other monetary charge, which activities involve the performance of a service in this
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state as distinguished from selling property.
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(b) The following businesses and services performed in this state, along with the applicable
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2017 North American Industrial Classification System (NAICS) codes, are included in the
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definition of services:
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(1) Taxicab and limousine services including but not limited to:
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(i) Taxicab services including taxi dispatchers (485310); and
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(ii) Limousine services (485320).
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(2) Other road transportation service including but not limited to:
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(i) Charter bus service (485510);
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(ii) “Transportation network companies” (TNC) defined as an entity that uses a digital
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network to connect transportation network company riders to transportation network operators who
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provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15
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and is required to file a business application and registration form and obtain a permit to make sales

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at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and
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(iii) All other transit and ground passenger transportation (485999).
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(3)
Pet care services (812910) except veterinary and testing laboratories services.
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(4)(i) “Room reseller” or “reseller” means any person, except a tour operator as defined in
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§ 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as
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defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the
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reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion
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of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include,
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but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the
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provisions of any other law, where said reservation or transfer of occupancy is done using a room
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reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and
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the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to
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register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes,
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with said taxes being calculated upon the amount of rental and other fees paid by the occupant to
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the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller
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or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the
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amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant.
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No assessment shall be made by the tax administrator against a hotel because of an incorrect
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remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be
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made by the tax administrator against a room reseller or reseller because of an incorrect remittance
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of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter,
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the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes.
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If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller
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or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the
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occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and
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other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant
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to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same
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manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or
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reseller from the occupant under this chapter shall be stated and charged separately from the rental
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and other fees, and shall be shown separately on all records thereof, whether made at the time the
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transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the
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room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the
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occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller
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shall represent to the occupant that the separately stated taxes charged by the room reseller or

LC004310 - Page 2 of 4
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reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a
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room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit
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pursuant to § 44-19-1.
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(ii) “Travel package” means a room, or rooms, bundled with one or more other, separate
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components of travel such as air transportation, car rental, or similar items, which travel package
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is charged to the customer or occupant for a single, retail price. When the room occupancy is
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bundled for a single consideration, with other property, services, amusement charges, or any other
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items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire
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single consideration shall be treated as the rental or other fees for room occupancy subject to tax
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under this chapter; provided, however, that where the amount of the rental, or other fees for room
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occupancy is stated separately from the price of such other property, services, amusement charges,
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or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such
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rental and other fees are determined by the tax administrator to be reasonable in relation to the
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value of such other property, services, amusement charges, or other items, only such separately
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stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any
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room, or rooms, bundled as part of a travel package may be determined by the tax administrator
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from the room reseller’s and/or reseller’s and/or hotel’s books and records that are kept in the
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regular course of business.
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(5) Investigation, Guard, and Armored Car Services (561611, 561612 & 561613).
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(6) “Parking services” (812930) means the act of offering a parking space in or on a parking
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facility for purposes of occupancy by a patron in exchange for a parking fee for a duration of less
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than one month.
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(c) All services as defined herein are required to file a business application and registration
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form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and
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remit Rhode Island sales and use tax.
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(d) The tax administrator is authorized to promulgate rules and regulations in accordance
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with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of
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this chapter.
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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 TAXATION -- SALES AND USE TAXES -- LIABILITY AND
COMPUTATION
***
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This act would repeal pet care services from the services subject to sales tax as defined by
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§§ 44-18-7(19) and 44-18-7.3(b)(3).
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This act would take effect upon passage.
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