Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 51 - Hotels and Other Accommodations (280-RICR-20-70-51)
Section 280-RICR-20-70-51.10 - Exemptions

Universal Citation: 280 RI Code of Rules 20 70 51.10

Current through September 18, 2024

A. The following rentals are exempt from tax:

1. Rentals charged at camps or retreat houses operated by religious, charitable and educational organizations and institutions.

2. Rentals charged by privately owned and operated summer camps for children.

3. Rentals charged for living quarters in an institution licensed by the state for the hospitalization, custodial or nursing care of human beings.

4. Rentals charged by any non-profit educational institution for living quarters to accommodate any student or teacher, if such living quarters are necessitated by attendance at such institution.

B. However, where a non-profit organization rents living quarters in the same manner as a hotel or rooming house (e.g. YMCA) it is required to register and add and collect the rental tax.

C. Other Exemptions

1. Occupancy of rooms by the United States Government or its agencies, or by an employee or representative of the United States Government or its agencies, when such occupancy is solely for official purposes and the rent is billed to and paid by the United States Government or its agencies.

2. Members of the Armed Forces are not exempt from tax upon occupancy of rooms unless acting as authorized representatives of the United States Government or one of its agencies and are otherwise entitled to exemption under the provisions of the preceding paragraph.

3. Occupancy by employees or representatives of the State of Rhode Island, its instrumentalities or political subdivisions, is exempt from the tax when such occupancy is for official purposes and the rent is billed to and paid by the State, its agencies or political subdivisions.

D. Whenever exemption from the tax on room rental charges is claimed by any employee, representative or other official of the United States Government, or of the State of Rhode Island or of any of its cities or towns or other political subdivisions, because such person is on official business, such exemption will apply only if the following two conditions are met:

1. The bill is made out to the governmental agency involved, and

2. Payment is made by such agency.

E. If the employee pays the bill (even though the bill is made out to the governmental agency by whom he or she is employed or which he or she represents), the tax applies. In such case it is immaterial that such employee is reimbursed or that the economic burden of the tax is passed on to the governmental agency.

F. Records of Exempt Rentals - The hotel/operator must maintain records to support and identify all exempt rentals.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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