AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT (Distinguishes residential and commercial short-term rental properties for tax purposes.)

H7657

2026 -- H 7657
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LC004506
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
DEVELOPMENT

Introduced By:
Representatives Carson, Cortvriend, and Spears

Date Introduced:
February 11, 2026

Referred To:
House Municipal Government & Housing
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 42-63.1-2 and 42-63.1-14 of the General Laws in Chapter 42-63.1
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entitled "Tourism and Development" are hereby amended to read as follows:
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42-63.1-2. Definitions.
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For the purposes of this chapter:
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(1) “Consideration” means the monetary charge for the use of space devoted to transient
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lodging accommodations.
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(2) “Corporation” means the Rhode Island commerce corporation.
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(3) “District” means the regional tourism districts set forth in § 42-63.1-5.
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(4) “Hosting platform” means any electronic or operating system in which a person or
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entity provides a means through which an owner may offer a residential unit for “tourist or
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transient” use. This service is usually, though not necessarily, provided through an online or web-
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based system which generally allows an owner to advertise the residential unit through a hosted
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website and provides a means for a person or entity to arrange, or otherwise facilitate reservations
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for, tourist or transient use in exchange for payment, whether the person or entity pays rent directly
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to the owner or to the hosting platform. All hosting platforms are required to collect and remit the
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tax owed under this section.
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(5) “Hotel” means any facility offering a minimum of one (1) room for which the public
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may, for a consideration, obtain transient lodging accommodations. The term “hotel” shall include

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hotels, motels, tourist homes, tourist camps, lodging houses, and inns. The term “hotel” shall also
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include houses, condominiums, or other residential dwelling units, regardless of the number of
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rooms, which are used and/or advertised for rent for occupancy. The term “hotel” shall not include
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schools, hospitals, sanitariums, nursing homes, and chronic care centers.
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(6) “Occupancy” means a person, firm, or corporation’s use of space for transient lodging
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accommodations not to exceed thirty (30) days. Excluded from “occupancy” is the use of space for
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which the occupant has a written lease for the space, which lease covers a rental period of twelve
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(12) months or more. Furthermore, any house, condominium, or other residential dwelling rented,
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for which the occupant has a documented arrangement for the space covering a rental period of
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more than thirty (30) consecutive days or for one calendar month is excluded from the definition
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of occupancy.
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(7) “Owner” means any person who owns real property and is the owner of record. Owner
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shall also include a lessee where the lessee is offering a residential unit for “tourist or transient”
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use.
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(8) “Primary residence” means the location of the residential property at which:
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(i) The owner lives for seven (7) or more months out of the year; and
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(ii) The owner is registered to vote.
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(8)
(9)
“Residential unit” means a room or rooms, including a condominium or a room or a
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dwelling unit that forms part of a single, joint, or shared tenant arrangement, in any building, or
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portion thereof, which is designed, built, rented, leased, let, or hired out to be occupied for non-
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commercial use.
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(10) “Short-term rental” means a person, firm, or corporation’s utilization, for transient
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lodging accommodations, of a rental not to exceed thirty (30) nights at a time.
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(9)
(11)
“Tax” means the hotel tax and whole home short-term rental tax imposed by § 44-
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18-36.1(a) and (d).
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(10)
(12)
“Tourist or transient” means any use of a residential unit for occupancy for less
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than a thirty (30) consecutive day term of tenancy, or occupancy for less than thirty (30) consecutive
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days of a residential unit leased or owned by a business entity, whether on a short-term or long-
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term basis, including any occupancy by employees or guests of a business entity for less than thirty
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(30) consecutive days where payment for the residential unit is contracted for or paid by the
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business entity.
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(11)
(13)
“Tour operator” means a person that derives a majority of their or its revenue by
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providing tour operator packages.
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(12)
(14)
“Tour operator packages” means travel packages that include the services of a

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tour guide and where the itinerary encompasses five (5) or more consecutive days.
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42-63.1-14. Offering residential units through a hosting platform.
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(a) For any rental property offered for tourist or transient use on a hosting platform that
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collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44-
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18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering
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the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform
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from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit
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for tourist or transient use. A hosting platform shall comply with the requirement imposed upon
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room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to
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apply. The division of taxation shall at the request of a city, town, or municipality confirm whether
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a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i).
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(b) Any short-term rental property listed for rent on the website of any third-party hosting
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platform that conducts business in Rhode Island shall be registered with the department of business
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regulation. The registration shall provide the information necessary to identify the property
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pursuant to subsection (d) of this section.
For purposes of this section, the term “short-term rental”
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means a person, firm, or corporation’s utilization, for transient lodging accommodations, not to
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exceed thirty (30) nights at a time.
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(c) The department of business regulation shall contact all hosting platforms that list
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property in Rhode Island on their website for rent and that submit hotel taxes to the division of
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taxation and/or the city of Newport and shall provide notice of the registration requirement,
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pursuant to this section, instructing the hosting platforms to notify their listed properties to register
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with the department of business regulation annually or be subject to fines pursuant to subsection (i)
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of this section. Provided further, renewals of registrations pursuant to this section shall become due
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for renewal on the anniversary date of the original registration.
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(d) The state registration pursuant to this section shall include:
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(1) The principal place of business of the owner, or if outside the state, the agent for service
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of process or property manager for the owner;
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(2) The phone number of the owner of the property and/or property manager;
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(3) The email address of the property owner and/or property manager;
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(4) The address of the rental property;
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(5) The number of rooms for rent at the property;
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(6) Whether the registrant rents or owns;
and
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(7) Intended use (entire space, private room, or shared space)
; and
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(8) The primary residence, as defined by § 42-63.1-2, of the owner of the property
.

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(e) The assigned registration number shall consist of numeric and alpha characters, the
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alpha characters shall correspond to the city/town where the property is located and shall be uniform
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for the remaining properties in said city/town.
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(f) Registration forms and/or any registration materials required by the department shall be
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completed prior to a listing by a hosting platform. The registration number shall be valid for the
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year during which it is assigned, and if a listed property is not duly registered after the expiration
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of the annual registration period, the hosting platform shall remove the property listing from its
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website within fourteen (14) days of notification from the department.
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(g) The department of business regulation shall promulgate rules and regulations to
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correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to
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property owners registering with the department pursuant to this section.
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(h) The department of business regulation shall create an online database to store all
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registered short-term rental units, and each unit shall have an online identification number in said
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database to correspond with subsection (e) of this section.
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(i) Any owner of the property who or that fails to register with the department of business
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regulation as prescribed herein and lists the property as a short-term rental on a hosting platform
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website shall be subject to a civil fine as follows:
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(1) Two hundred fifty dollars ($250) for the first thirty (30) days of noncompliance;
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(2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of
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noncompliance; and
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(3) One thousand dollars ($1,000) for more than sixty (60) days of noncompliance.
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(j) Notwithstanding any other law or provision to the contrary, no person shall list any
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residence for short-term rental for tourist or transient use without the property’s current, valid
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registration number, and its expiration date, which hosting platforms shall require to be displayed
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on the listing advertisement. Any hosting platform that offers short-term rental of residential
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property for tourist or transient use without requiring the owner to display the current, valid
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registration number of a property, and its expiration date, shall be subject to a civil fine of two
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hundred fifty dollars ($250) per day per violation, with each property listing constituting a separate
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violation.
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(k) A hosting platform shall provide to the department of business regulation, on a quarterly
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basis, an electronic report, in a format determined by the department of business regulation, of the
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listings maintained, authorized, facilitated, or advertised by the hosting platform within the state
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for the applicable reporting period. The report shall include a breakdown of the municipality where
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the listings are located, whether the listing is for a room or a whole unit, the total number of short-

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term rentals listed on the platform, the registration number of each short-term rental listed on the
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platform, the URL link of each short-term rental listed on the platform, and shall include the number
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of nights each unit was reported as occupied during the applicable reporting period.
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(l) Any short-term rental registered pursuant to subsection (c) of this section that is the
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owner’s primary residence shall be classed as residential real estate in accordance with § 44-5-
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11.8(b)(1).
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(m) Any short-term rental registered pursuant to subsection (c) of this section that is not
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the owner’s primary residence shall be classed as commercial property in accordance with § 44-5-
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11.8(b)(2).
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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 STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
DEVELOPMENT
***
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This act would differentiate between owner-occupied and non-owner-occupied short-term
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rentals for tax purposes. To that end, short-term rental properties that are listed as the owner’s
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primary residence in the short-term rental registry would be considered residential properties for
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tax purposes. Conversely, short-term rental properties that are not listed as the owner’s primary
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residence in the short-term rental registry would be considered commercial properties for tax
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purposes.
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This act would take effect upon passage.
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