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SB 2372

AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

2026 Regular Session Introduced by John Burke and 6 co-sponsors

Eliminate Rhode Island sales tax for taxi services and pet care services.

05/28/2026 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · SB 2372

Overview

SB 2372 (Rhode Island, 2026) would modify the definition of “services” for Rhode Island sales and use taxes and specifically remove the sales tax from two categories: taxi services and pet care services. The bill was introduced Jan 30, 2026, referred to Senate Finance, and is scheduled for further consideration.

Main purpose and intent

  • Eliminate the sales tax on two specified service categories: taxi services and pet care services.
  • Update the statutory scope of taxable services to codify these exemptions and clarify which activities are treated as services for tax purposes.

Key provisions and changes

  • Define “Services” (44-18-7.3) to include several transportation-related and other service categories, with explicit NAICS codes for each:
    • Taxicab and limousine services (NAICS 485320), including taxi dispatchers (485310) and limousine services (485320).
    • Other road transportation services (NAICS 485510, 485999) such as charter bus service, transportation network companies (TNCs), and other ground passenger transportation.
    • Pet care services (NAICS 812910), excluding veterinary and testing laboratories.
    • Room reseller/reseller arrangements for hotel occupancy with detailed tax handling provisions (registration, tax collection, payment, allocation of taxes between hotel and reseller/occupant, and disclosures).
    • Travel packages and bundled room occupancy, with rules on tax treatment when components are bundled versus separately stated.
    • Investigation, guard, and armored car services (NAICS 561611, 561612, 561613) and Parking services (NAICS 812930) as taxable services.
  • Administrative provisions:
    • All listed services must obtain a sales-tax permit and register to collect and remit RI sales and use tax.
    • The Rhode Island tax administrator may issue rules to implement these provisions.

Who would be affected

  • Taxi and limousine operators, taxi dispatchers, and any entity providing taxi, limousine, or related transportation services in Rhode Island.
  • Pet care service providers (excluding veterinary clinics and testing labs).
  • Room resellers and travel package providers involved in hotel room reservations and bundled travel arrangements.
  • Operators of transportation network companies (TNCs) operating in the state, and other road transportation providers.
  • Operators of parking facilities and security/guard services as defined.
  • Hotels and room resellers, which would share responsibility for collecting and remitting taxes on occupancy charges.

Procedural and timeline aspects

  • Effective date: The act takes effect upon passage.
  • Implementation will require service providers to obtain permits, register with the tax administrator, and comply with ongoing collection and remittance of sales and use taxes.
  • The bill authorizes the tax administrator to promulgate regulations to carry out its provisions.

Potential impact

  • Consumers could see changes only where exemptions apply (taxi services and pet care services become untaxed). Most other service categories remain taxable under the revised definitions.
  • Businesses in transportation, pet care, hotel/reseller sectors may face compliance changes, filing requirements, and potential administrative costs associated with obtaining permits and maintaining records for tax collection.
  • Tax administration authority would gain specific regulatory authority to implement these changes and ensure proper enforcement.

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

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