Rhode Island law requires STR platforms to include registration numbers in listings
- Aug 13, 2024 | Jennifer Sokolowsky
New amendments to a Rhode Island law emphasize the responsibility of short-term rental (STR) marketplaces such as Airbnb and Vrbo to ensure all listed properties are registered with the state.
The measure clarifies several terms related to STRs. The ordinance expands the definition of “hotel” to mean “any facility offering a minimum of one room for which the public may, for a consideration, obtain transient lodging accommodations.” This includes hotels, motels, tourist homes, tourist camps, lodging houses, inns, houses, condominiums, and “other residential dwelling units, regardless of the number of rooms.”
The law also defines a “hosting platform” as any electronic or operating system through which an owner may offer a residential unit for “tourist or transient” use, which is defined as occupancy of less than 30 consecutive days.
Hosting platforms are required to collect and remit the state hotel tax on applicable properties. The tax does not apply to whole-home rentals.
Rhode Island short-term rental hosts who list their properties on short-term rental marketplaces are already required to register with the Rhode Island Department of Business Regulation. STR owners who don’t comply can face fines between $250 and $1,000.
The new law specifies that hosting platforms must make sure all Rhode Island listings have state business registration numbers with expiration dates and must notify hosts to register their STRs every year. Hosting platforms are required to provide quarterly reports to the state with information on listings, registration numbers, and occupancy. The law also directs the department to create a database of all registered STRs.
Platforms must remove unregistered listings within 14 days of notification by the department. They can face fines of $250 per day for listing unregistered properties.
The law goes into effect January 30, 2025.
Lawsuit delays Narragansett STR law
Even with new state rules, most regulation of Rhode Island STRs happens at the local level. In Narragansett, an STR ordinance that passed this spring is on hold after a group of landlords and property managers sued the city. The law was originally set to go into effect on August 1, 2024, but enforcement was delayed until a court ruling, which is expected in mid-September.
Under Narragansett’s law, STR operators are required to apply for permits, which cost $425 in fees for town residents and $850 for nonresidents. The number of STR permits will be capped at 1,100 in 2024 and decrease to 1,000 in 2025 and 900 in 2026.
STRs must also pass safety inspections and meet square footage and parking requirements. Large events such as weddings or bachelor parties are not allowed, and hosts must designate a local representative who can respond to complaints.
Fines for violations of the STR regulations run from $250 to $1,000. The town plans to hire a private vendor for STR tracking and enforcement.
STR hosts required to comply with lodging tax rules
Rhode Island STR hosts also have lodging tax responsibilities. They must register with the Rhode Island Division of Taxation, collect lodging taxes from their guests, and file lodging tax returns.
If hosts use an STR marketplace that collects all guest payments, the marketplace is required to register with the Rhode Island Division of Taxation, charge and collect taxes, and remit the tax on hosts’ behalf. Hosts who collect payments from short-term rental guests directly are responsible for their own lodging tax compliance.
Avalara MyLodgeTax can help Rhode Island vacation rental hosts automate and simplify tax compliance. For more on lodging taxes in Rhode Island, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.
