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SB 2664

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT

2026 Regular Session Introduced by Jake Bissaillon and 5 co-sponsors

The bill reallocates hotel and short-term rental tax proceeds to fund housing/homelessness programs (50% of whole-home short-term rental tax) and increases funding for the Rhode Is

05/11/2026 Meeting postponed (05/12/2026)
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WeVote Research Nonpartisan
Bill Summary · SB 2664

Overview

  • Bill: SB 2664
  • Session: 2026, Rhode Island
  • Topic: State Affairs and Government – Tourism and Development
  • Introduced: February 27, 2026
  • Referred to: Senate Finance
  • Sponsors: Senators Britto, Dimitri, DiMario, Zurier, Bissaillon, Urso (plus co-sponsors)

Purpose: The bill modifies how hotel and related tourism taxes are distributed among regional districts, cities/towns, and tourism-related organizations, and it introduces changes to the treatment of short-term rental taxes and proceeds from residential units offered for tourist or transient use. It ends certain allocations to one entity and reallocates to another, and it expands use of some tourism-related funds for development and art initiatives starting in 2026.

Key Provisions and Changes

  1. Revised hotel tax distribution (pre-2015 and post-2015 framework alignment)

    • The bill reorganizes how hotel tax revenue is distributed across districts, cities/towns, and tourism organizations, with different rules depending on the time period of the tax return/payment (before or after 2015, and after 2015 with district-specific rules).
    • It specifies distributions for multiple districts (Aquidneck Island, Providence, Warwick, Statewide, and others), and varying percentages to:
      • Regional tourism districts
      • Cities and towns where the hotel is located
      • Greater Providence-Warwick Convention and Visitors Bureau
      • Providence and Warwick Convention and Visitors Bureaus
      • Rhode Island Commerce Corporation (RICC) and other tourism-related entities
    • The distribution framework is detailed by geographic district (Aquidneck Island, Providence, Warwick, statewide, and other districts) and includes nested allocations to local bureaus and the commerce corporation.
    • The act preserves certain district-specific allocations and adjusts others, with the Newport-area distribution continuing as a reference point in several sections.

  2. Residential units/housing-related tax treatment

    • Excludes hotel tax proceeds from residential units offered for tourist or transient use through hosting platforms from certain distributions in some sections.
    • For returns and tax payments after July 1, 2019, the proceeds of the short-term rental tax (whole-home rentals) are allocated among:
      • Housing Resources and Homelessness restricted receipt account (50%)
      • Regional tourism district where the unit is located (25%)
      • City or town where the unit is physically located (25%)
    • This creates a dedicated funding stream for housing/homelessness initiatives while still supporting tourism districts.

  3. Special provision for the South County district

    • The bill would remove the 5% allocation of hotel tax from the South County district to the Greater Providence-Warwick Convention and Visitors Bureau.
    • The 5% previously allocated to the GP-W Bureau would instead be redirected to the Rhode Island Commerce Corporation under the broader commerce/arts/marketing allocation.

  4. Minimum annual spend by Rhode Island Commerce Corporation

    • The Commerce Corporation is required to spend at least the total amount of hotel tax proceeds it receives in a fiscal year on promotion and marketing of Rhode Island as a destination (acting as a minimum mandate).

  5. Effective date

    • The act takes effect upon passage.

Who and What Would Be Affected

  • Tourism-related organizations: Regional tourism districts, Greater Providence-Warwick Convention and Visitors Bureau, Providence and Warwick CVBs, and the Rhode Island Commerce Corporation would see changes in funding allocations.
  • Localities (cities/towns): Funds distributed to the city or town where the hotel or residential unit is located would change under various district scenarios.
  • Hotel and lodging industry: The distribution framework affects revenue flows to regional tourism districts and local tourism bureaus.
  • Residential/short-term rental sector: Proceeds from whole-home short-term rental taxes would be allocated partially to housing/homelessness resources, in addition to tourism district funding.
  • Housing and homelessness programs: A new funding stream via 50% of the whole-home short-term rental tax proceeds being deposited into a restricted housing/homelessness account.
  • Rhode Island Commerce Corporation: Receives a larger share of hotel tax proceeds under certain sections and must deploy funds toward destination marketing, art, and related development.

Procedural and Timeline Aspects

  • The act revises distributions for different time frames:
    • Pre-2015 returns/payments (with ongoing carve-outs for residential unit tax portions)
    • Post-2015 returns/payments (with district-specific allocations)
    • Post-2019 adjustments for hotel tax including residential-unit exclusions
    • Provisions valid from July 1, 2026 onward for five-percent allocation changes in Aquidneck Island district statewide tourism tax development (RICC for tourism development, public art, events in participating regions)
  • Effective date: immediate upon passage.

Practical Impact and Considerations

  • The bill shifts a portion of hotel tax allocations away from traditional bureaus toward the Rhode Island Commerce Corporation, potentially increasing state-level marketing and development efforts.
  • By earmarking a significant portion of short-term rental tax receipts to housing/homelessness resources, the bill links tourism revenue to social impact outcomes.
  • Localities receive a defined share of tax proceeds based on district definitions, which may affect funding for municipal projects, infrastructure, or services tied to tourism.
  • The act requires ongoing minimum investment by the Commerce Corporation in destination marketing, ensuring a baseline promotional budget.

If you’d like, I can distill the exact percentage allocations by district into a reference table for quick comparison.

Compiled from official sources — confirm details with the bill’s official record.

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