AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT (Removes the requirement that 5% of the hotel tax generated from regional tourism districts be paid to the Greater Providence-Warwick Convention and Visitors Bureau, and adds that 5% of the hotel tax to the existing tax paid to the RI commerce corporation.)

S2814

2026 -- S 2814
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LC005401
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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:
Senators Gu, DiPalma, Tikoian, and Kallman

Date Introduced:
March 04, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
1
SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism
2
and Development" is hereby amended to read as follows:
3

42-63.1-3. Distribution of tax.
4
(a) For returns and tax payments received on or before December 31, 2015, except as
5
provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax
6
collected from residential units offered for tourist or transient use through a hosting platform, shall
7
be distributed as follows by the division of taxation and the city of Newport:
8
(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as
9
otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel
10
is located; provided, however, that from the tax generated by the hotels in the city of Warwick,
11
thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district
12
established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater
13
Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided
14
further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)
15
of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau
16
established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the
17
Convention Authority of the city of Providence established pursuant to the provisions of chapter
18
84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

1
district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts
2
attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island
3
commerce corporation as established in chapter 64 of this title.
4
(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the
5
hotel that generated the tax is physically located, to be used for whatever purpose the city or town
6
decides.
7
(3) Twenty-one percent (21%) of the hotel tax shall be given to the Rhode Island commerce
8
corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence-
9
Warwick Convention and Visitors’ Bureau.
10
(b) For returns and tax payments received after December 31, 2015, except as provided in
11
§ 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from
12
residential units offered for tourist or transient use through a hosting platform, shall be distributed
13
as follows by the division of taxation and the city of Newport:
14
(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-
15
63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-
16
five percent (25%) of the tax shall be given to the city or town where the hotel that generated the
17
tax is physically located,
five percent (5%) of the tax shall be given to the Greater Providence-
18
Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
twenty-eight percent
19
(28%)

thirty-three percent (33%)
of the tax shall be given to the Rhode Island commerce
20
corporation established in chapter 64 of this title.
21
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,
22
twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent
23
(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically
24
located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick
25
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four percent (24%) of the
26
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
27
(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,
28
twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent
29
(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically
30
located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick
31
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four percent (24%) of the
32
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
33
(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,
34
twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated

LC005401 - Page 2 of 7
1
the tax is physically located,
five percent (5%) of the tax shall be given to the Greater Providence-
2
Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
seventy percent (70%)

3
seventy-five percent (75%)
of the tax shall be given to the Rhode Island commerce corporation
4
established in chapter 64 of this title.
5
(5) With respect to the tax generated by hotels in districts other than those set forth in
6
subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given
7
to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five
8
percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is
9
physically located,
five percent (5%) of the tax shall be given to the Greater Providence-Warwick
10
Convention and Visitors Bureau established in § 42-63.1-11,
and
twenty-eight percent (28%)

thirty-
11
three percent (33%)
of the tax shall be given to the Rhode Island commerce corporation established
12
in chapter 64 of this title.
13
(c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax
14
collected from residential units offered for tourist or transient use through a hosting platform shall
15
be distributed as follows by the division of taxation and the city of Newport: twenty-five percent
16
(25%) of the tax shall be given to the city or town where the residential unit that generated the tax
17
is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island
18
commerce corporation established in chapter 64 of this title.
19
(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend
20
on the promotion and marketing of Rhode Island as a destination for tourists or businesses an
21
amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this
22
chapter for the fiscal year.
23
(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments
24
received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-
25
12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential
26
units offered for tourist or transient use through a hosting platform, shall be distributed in
27
accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this
28
section by the division of taxation and the city of Newport.
29
(f) For returns and tax payments received on or after July 1, 2018, except as provided in §
30
42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from
31
residential units offered for tourist or transient use through a hosting platform, shall be distributed
32
as follows by the division of taxation and the city of Newport:
33
(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-
34
63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-

LC005401 - Page 3 of 7
1
five percent (25%) of the tax shall be given to the city or town where the hotel that generated the
2
tax is physically located,
five percent (5%) of the tax shall be given to the Greater Providence-
3
Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
twenty-five percent
4
(25%)

thirty percent (30%)
of the tax shall be given to the Rhode Island commerce corporation
5
established in chapter 64 of this title.
6
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,
7
thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%)
8
of the tax shall be given to the city or town where the hotel that generated the tax is physically
9
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick
10
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the
11
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
12
(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,
13
thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)
14
of the tax shall be given to the city or town where the hotel that generated the tax is physically
15
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick
16
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the
17
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
18
(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,
19
twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated
20
the tax is physically located,
five percent (5%) of the tax shall be given to the Greater Providence-
21
Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
seventy percent (70%)

22
seventy-five percent (75%)
of the tax shall be given to the Rhode Island commerce corporation
23
established in chapter 64 of this title.
24
(5) With respect to the tax generated by hotels in districts other than those set forth in
25
subsections (f)(1) through (f)(4) of this section, forty-five percent (45%) of the tax shall be given
26
to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five
27
percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is
28
physically located,
five percent (5%) of the tax shall be given to the Greater Providence-Warwick
29
Convention and Visitors Bureau established in § 42-63.1-11,
and
twenty-five (25%)

thirty percent
30
(30%)
of the tax shall be given to the Rhode Island commerce corporation established in chapter
31
64 of this title.
32
(g) For returns and tax payments received on or after July 1, 2019, except as provided in §
33
42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from
34
residential units offered for tourist or transient use through a hosting platform except as provided

LC005401 - Page 4 of 7
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in subsection (h) of this section, shall be distributed as follows by the division of taxation and the
2
city of Newport:
3
(1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-
4
five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent
5
(25%) of the tax shall be given to the city or town where the hotel or residential unit that generated
6
the tax is physically located,
five percent (5%) of the tax shall be given to the Greater Providence-
7
Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
twenty-five percent
8
(25%)

thirty percent (30%)
of the tax shall be given to the Rhode Island commerce corporation
9
established in chapter 64 of this title.
10
(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent
11
(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall
12
be given to the city or town where the hotel or residential unit that generated the tax is physically
13
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick
14
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the
15
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
16
(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent
17
(30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall
18
be given to the city or town where the hotel or residential unit that generated the tax is physically
19
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick
20
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the
21
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
22
(4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five
23
percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that
24
generated the tax is physically located,
five percent (5%) of the tax shall be given to the Greater
25
Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
seventy
26
percent (70%)

seventy-five percent (75%)
of the tax shall be given to the Rhode Island commerce
27
corporation established in chapter 64 of this title.
28
(5) With respect to the tax generated in districts other than those set forth in subsections
29
(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional
30
tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-
31
five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit
32
that generated the tax is physically located,
five percent (5%) of the tax shall be given to the Greater
33
Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11,
and
twenty-five
34
percent (25%)

thirty percent (30%)
of the tax shall be given to the Rhode Island commerce

LC005401 - Page 5 of 7
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corporation established in chapter 64 of this title.
2

(6) For returns and tax payments received on or after July 1, 2026, except as provided in §
3
42-63.1-12(d), five percent (5%) of the taxes generated in the Aquidneck Island district, statewide
4
district, Block Island district and South County district shall be given to the Rhode Island commerce
5
corporation for tourism development, public art and events throughout the participating regions.
6
(h)
Distribution of whole home short-term rental tax.
For returns and tax payments
7
received after December 31, 2025, the proceeds of the whole home short-term rental tax established
8
in § 44-18-36.1(d) shall be distributed as follows by the division of taxation and the city of Newport:
9
fifty percent (50%) of the tax shall be deposited into the Housing Resources and Homelessness
10
restricted receipt account, established pursuant to § 42-128-2, twenty-five percent (25%) shall be
11
given to the regional tourism district, as defined in § 42-63.1-5, wherein the residential unit is
12
located, and twenty-five percent (25%) shall be given to the city or town where the residential unit
13
that generated the tax is physically located.
14
SECTION 2. This act shall take effect upon passage.
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LC005401
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LC005401 - Page 6 of 7
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
DEVELOPMENT
***
1
This act would remove the requirement that five percent (5%) of the hotel tax generated
2
from regional tourism districts be paid to the Greater Providence-Warwick Convention and Visitors
3
Bureau, and would add that five percent (5%) of the hotel tax to the existing tax paid to the Rhode
4
Island commerce corporation.
5
This act would take effect upon passage.
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LC005401
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LC005401 - Page 7 of 7