Section 280-RICR-20-70-51.8 - Hosting Platforms, Realtors, Room Resellers and Travel PackagesA. Hosting Platform 1. A hosting platform as defined in § 51.5 of this Part is required to register, collect and remit both sales and hotel tax on the rental charge to occupants for rooms and other residential dwellings. a. Example 1: A person rents a room in their residential home through an online hosting platform. The rentals vary from a weekend to an entire week. Since the definition of a hotel includes residential dwellings and no rental period exceeds thirty (30) consecutive days or one calendar month, both 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. The hosting platform is required to collect and remit the tax.b. Example 2: A person rents a room in their residential house through an online hosting platform. The rental period is for one calendar month and the occupant has a documented arrangement. This rental is not subject to sales or hotel tax as the rental period is for one calendar month.B. Realtors 1. Every person advertising, managing or operating a hotel which includes residential dwellings, motels, rooming houses or tourist camps, or who collects or receives rents on behalf of the owner or operator, is liable for the tax on such rentals. The tax shall be added to the total rental charge without an allowance for any commissions or fees received.2. When an owner of a residential dwelling advertises it as a short term rental (thirty (30) days or less) through a real estate agency and is charged only an upfront fee for advertising by the real estate agency, and the prospective tenant after finding the advertisement deals directly with the owner and not the real estate agency, the owner is responsible for registering and collecting both sales and applicable hotel tax.a. Example 1: A realtor collects a one week rental charge of $2000 for a home rented in its entirety. A commission of $350 is kept by the realtor. In addition, a $500 security deposit is paid by the occupant. At the end of the rental period there are damages totaling $300 and a cleaning fee of $100 deducted from the security deposit. Sales and local hotel tax is due on the total rental charges paid by the occupant calculated as follows:(1) $2000 total rental charge (no allowance for commission) plus $300 damages plus $100 cleaning fee equals $2400 subject to both sales and local hotel tax. It is noted that only the refunded portion of the security deposit is not subject to tax.(2) All taxes collected constitute a trust fund.C. Room Reseller. A room reseller as defined in § 51.5 of this Part is required to register, collect and remit both sales and hotel tax on the total charge to occupants for room rentals. Sales and hotel taxes are calculated upon the amount of rental and other fees paid by the occupant to the room reseller, less the amount of tax paid by the room reseller to the hotel. The hotel shall calculate both sales and hotel taxes upon the amount of rental and other fees paid to the hotel by the room reseller and/or the occupant. 1. Example 1: Hotel charges a room reseller $100 for a room plus sales tax of $7 and hotel tax of $6. The room reseller arranges for the transfer of occupancy and charges the occupant $150 for the room, sales tax of $10.50 and hotel tax of $9. The room reseller will calculate sales tax due as follows: $10.50 collected less $7 paid to the hotel equals $3.50 sales tax due. Hotel tax is calculated in the same manner: $9 collected less $6 remitted equals $3 due.2. Example 2: Assume the same facts as above however the occupant has additional fees of $50 charged by the hotel. The hotel is responsible for charging and remitting the applicable sales and hotel tax to the occupant for the additional fees.D. Travel Packages. A travel package as defined in § 51.5 of this Part consisting of a single consideration for "bundled" travel charges shall be treated as the rental/fee for room occupancy and is subject to tax, even if the separate sale of certain bundled travel charges would otherwise not be subject to tax. Separately stated room occupancy charges and other travel charges are subject to tax based on the taxability of each individual item.280 R.I. Code R. § 280-RICR-20-70-51.8