Rhode Island General Laws Title 45. Towns and Cities § 45-60-6. Imposition of seasonal rental tax, rate, procedure, enforcement, exemptions

(a) It is hereby declared to be the legislative intent that every owner is exercising a taxable privilege who engages in the business of renting, leasing, letting, or granting a license to use any living quarters or sleeping or housekeeping accommodations in, from, or a part of, or in connection with any seasonal rental. However, any owner who rents, leases, lets, or grants a license to others to use, occupy, or enter upon any living quarters or sleeping or housekeeping accommodations in seasonal rentals and who exclusively enters into a bona fide written agreement for continuous residence for longer than six (6) months in duration at such property is not exercising a taxable privilege. For the exercise of such taxable privilege, a tax is hereby levied in an amount equal to no more than one percent (1%) of the actual rent received for such seasonal rental by owner. Such tax shall apply to seasonal rental whether or not there is in connection with any of the same any dining rooms, cafes, or other places where meals or lunches are sold or served to guests. For purposes of this chapter “ seasonal rental” shall mean any home or apartment rented for six (6) months or less.

(b) The owner receiving the rent shall remit the tax to the town treasurer for deposit into the Block Island housing fund at the end of the rental season but no later than February 15th of the following year or at some other time as designated by the Block Island housing board.

(c) The tax levied by this section shall not apply to, be imposed upon, or collected from any person who shall have entered into a bona fide written lease for longer than six (6) months in duration for continuous residence at any one seasonal rental.

(d) The tax imposed by this section shall constitute a lien on the property on which the seasonal rental is located in the same manner as and shall be collectible as are liens authorized and imposed by chapter 9 of title 44.