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-20-70-51.7 - Sales Tax on Residential Dwellings

Universal Citation: 280 RI Code of Rules 20 70 51.7

Current through December 26, 2024

A. Sales Tax Liability

1. Sales and use tax is imposed on the sale, storage, use, or other consumption in this state at the rate as provided in R.I. Gen. Laws §§ 44-18-18 and 44-18-20 on the rental charges for rooms, houses, condominiums, and other residential dwellings. Tax is imposed on the total rental charges for the first thirty (30) consecutive days of each rental period, provided that such rental period is not greater than thirty (30) consecutive days or one calendar month.

2. For any room rented, or for a house, condominium, or other residential dwelling rented in its entirety to an occupant who has a documented agreement covering a rental period of more than thirty (30) consecutive days, or for one calendar month, there is no sales (or state/local hotel) tax due on the rental charge. In this case, the rental is excluded from the definition of occupancy.
a. Example 1: A college student rents a home for the nine (9) month period September through May. Since the rental period is greater than thirty (30) consecutive days, or for one calendar month (or more), there is no sales or hotel tax due on the rental charges.

b. Example 2: A person rents their beach house in its entirety for a three (3) month period June through August and the occupant has a documented agreement. Since the rental period is greater than thirty (30) consecutive days, or for one calendar month (or more), there is no sales or hotel tax due on the rental charges.

c. Example 3: A person rents their beach house in its entirety for separate two week periods in July and August. Since no rental period exceeds thirty (30) consecutive days or one calendar month, sales tax as provided in R.I. Gen. Laws § 44-18-18 and the local hotel tax as provided in R.I. Gen. Laws § 44-18-36.1(b) must be added to the amount charged for each rental period. Since the beach house is rented in its entirety, the state hotel tax per R.I. Gen. Laws § 44-18-36.1(a) does not apply.

d. Example 4: A person rents a room in their beach house for separate two week periods in July and August. Since no rental period exceeds thirty (30) consecutive days or one calendar month, sales tax as provided in R.I. Gen. Laws § 44-18-18 and state and local hotel taxes as provided in R.I. Gen. Laws § 44-18-36.1(a) and (b) must be added to the amount charged for each rental period.

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