SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism and Development" is hereby amended to read as follows: 42-63.1-3. Distribution of tax.
(a) For returns and tax payments received on or before December 31, 2015, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential units offered for tourist or transient use through a hosting platform, shall be distributed as follows by the division of taxation and the city of Newport:
(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel is located; provided, however, that from the tax generated by the hotels in the city of Warwick, thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the Convention Authority of the city of Providence established pursuant to the provisions of chapter 84 of the public laws of January, 1980; provided, however, that the receipts attributable to the district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island commerce corporation as established in chapter 64 of this title.
(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the hotel that generated the tax is physically located, to be used for whatever purpose the city or town decides.
(3) Twenty-one percent (21%) of the hotel tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence- Warwick Convention and Visitors’ Bureau.
(b) For returns and tax payments received after December 31, 2015, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential units offered for tourist or transient use through a hosting platform, shall be distributed as follows by the division of taxation and the city of Newport:
(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42- 63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty- five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) thirty-three percent (33%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four percent (24%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four percent (24%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(5) With respect to the tax generated by hotels in districts other than those set forth in subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) thirty- three percent (33%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax collected from residential units offered for tourist or transient use through a hosting platform shall be distributed as follows by the division of taxation and the city of Newport: twenty-five percent (25%) of the tax shall be given to the city or town where the residential unit that generated the tax is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend on the promotion and marketing of Rhode Island as a destination for tourists or businesses an amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this chapter for the fiscal year.
(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1- 12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential units offered for tourist or transient use through a hosting platform, shall be distributed in accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this section by the division of taxation and the city of Newport.
(f) For returns and tax payments received on or after July 1, 2018, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential units offered for tourist or transient use through a hosting platform, shall be distributed as follows by the division of taxation and the city of Newport:
(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42- 63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty- five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(5) With respect to the tax generated by hotels in districts other than those set forth in subsections (f)(1) through (f)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(g) For returns and tax payments received on or after July 1, 2019, except as provided in § 42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from residential units offered for tourist or transient use through a hosting platform except as provided in subsection (h) of this section, shall be distributed as follows by the division of taxation and the city of Newport:
(1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty- five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated the tax is physically located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated the tax is physically located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(5) With respect to the tax generated in districts other than those set forth in subsections (g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty- five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.
(6) For returns and tax payments received on or after July 1, 2026, except as provided in § 42-63.1-12(d), five percent (5%) of the taxes generated in the Aquidneck Island district statewide tourism district (New Shoreham, South County, Blackstone Valley) shall be given to the Rhode Island commerce corporation for tourism development, public art and events throughout the participating regions.
(h) Distribution of whole home short-term rental tax. For returns and tax payments received after December 31, 2025, the proceeds of the whole home short-term rental tax established in § 44-18-36.1(d) shall be distributed as follows by the division of taxation and the city of Newport: fifty percent (50%) of the tax shall be deposited into the Housing Resources and Homelessness restricted receipt account, established pursuant to § 42-128-2, twenty-five percent (25%) shall be given to the regional tourism district, as defined in § 42-63.1-5, wherein the residential unit is located, and twenty-five percent (25%) shall be given to the city or town where the residential unit that generated the tax is physically located.
SECTION 2. This act shall take effect upon passage.
