AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Phases out the local meals and beverage tax by January 1, 2030.)

S2082

2026 -- S 2082
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LC003305
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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:
Senators Paolino, E Morgan, Rogers, de la Cruz, Appollonio, Famiglietti,
Raptakis, Patalano, Dimitri, and Sosnowski

Date Introduced:
January 16, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 44-18-18.1 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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44-18-18.1. Local meals and beverage tax.
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(a) There is hereby levied and imposed, upon every purchaser of a meal and/or beverage,
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in addition to all other taxes and fees now imposed by law, a local meals and beverage tax upon
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each and every meal and/or beverage sold within the state of Rhode Island in or from an eating
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and/or drinking establishment, whether prepared in the eating and/or drinking establishment or not
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and whether consumed at the premises or not, at a rate of one percent of the gross receipts. The tax
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shall be paid to the tax administrator by the retailer at the time and in the manner provided.
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(b) All sums received by the division of taxation under this section as taxes, penalties, or
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forfeitures, interest, costs of suit, and fines shall be distributed at least quarterly and credited and
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paid by the state treasurer to the city or town where the meals and beverages are delivered.
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(c) When used in this section, the following words have the following meanings:
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(1) “Beverage” means all nonalcoholic beverages, as well as alcoholic beverages, beer,
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lager beer, ale, porter, wine, similar fermented malt, or vinous liquor.
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(2) “Eating and/or drinking establishment” means and includes restaurants, bars, taverns,
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lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish-and-
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chip places, fried chicken places, pizzerias, food-and-drink concessions, or similar facilities in

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amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race tracks,
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shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles, and other
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like places of business that furnish or provide facilities for immediate consumption of food at tables,
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chairs, or, counters or from trays, plates, cups, or other tableware, or in parking facilities provided
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primarily for the use of patrons in consuming products purchased at the location. Ordinarily, eating
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establishment does not mean and include food stores and supermarkets. Eating establishments does
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not mean “vending machines,” a self-contained automatic device that dispenses for sale foods,
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beverages, or confection products. Retailers selling prepared foods in bulk, either in customer-
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furnished containers or in the seller’s containers, for example “Soup and Sauce” establishments,
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are deemed to be selling prepared foods ordinarily for immediate consumption and, as such, are
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considered eating establishments.
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(3) “Meal” means any prepared food or beverage offered or held out for sale by an eating
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and/or drinking establishment for the purpose of being consumed by any person to satisfy the
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appetite and that is ready for immediate consumption. All such food and beverage, unless otherwise
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specifically exempted or excluded herein shall be included, whether intended to be consumed on
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the seller’s premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper,
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or by some other name, and without regard to the manner, time, or place of service.
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(d) This local meals and beverage tax shall be administered and collected by the division
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of taxation, and unless provided to the contrary in this chapter, all of the administration, collection,
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and other provisions of chapters 18 and 19 of this title apply.
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(e) For the tax year beginning on January 1, 2027, and each January 1 thereafter, the local
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meals and beverage tax shall be reduced by twenty-five one hundredths of one percent (0.25%).
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(f) The local meals and beverage tax shall sunset on January 1, 2030.
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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 phase out the local meals and beverage tax by January 1, 2030.
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This act would take effect upon passage.
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LC003305
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