2026-12 Resolution of the Council, re: Requesting the Town’s State Legislative Delegation to Introduce Legislation Exempting Municipally Operated Beach Parking in the Town of Middletown from the State Sales Tax on Short-Term Parking Services.

RESOLUTION OF THE TOWN OF MIDDLETOWN

RESOLUTION REQUESTING THE TOWN'S STATE LEGISLATIVE DELEGATION TO INTRODUCE LEGISLATION EXEMPTING MUNICIPALLY OPERATED BEACH PARKING IN THE TOWN OF MIDDLETOWN FROM THE STATE SALES TAX ON SHORT-TERM PARKING SERVICES

WHEREAS, pursuant to House Resolution 5076 Substitute A, the State Fiscal Year 2026 budget establishes a 7 percent sales tax on short-term parking services effective October 1, 2025; and

WHEREAS, the definition of short-term parking services includes paid beach parking operated by cities and towns; and

WHEREAS, the Town of Middletown operates municipal beach parking, the revenues from which are accounted for in a dedicated enterprise fund; and

WHEREAS, revenues deposited into the beach enterprise fund are restricted to funding the operations, maintenance, and related capital projects necessary for the long-term preservation of Middletown's public beaches; and

WHEREAS, the imposition of a state sales tax on municipal beach parking will increase the cost to residents and visitors accessing Middletown's beaches; and

WHEREAS, revenues generated from the sales tax would be diverted from the beach enterprise fund to the State's general fund, thereby reducing funds otherwise restricted for local beach operations and capital improvements; and

WHEREAS, compliance with the sales tax requirement would require the Town to implement an electronic commerce and payment system in place of its current cash-based operations, resulting in additional administrative costs and credit card processing fees; and

WHEREAS, these additional costs would further reduce net enterprise fund revenues available for beach operations and capital projects while imposing new operational burdens on the Town;

NOW, THEREFORE, BE IT RESOLVED by the Middletown Town Council that the Town's State Legislative Delegation is respectfully requested to introduce and support legislation amending Rhode Island General Laws § 44-18-7.3, or related provisions, to exempt municipally operated beach parking in the Town of Middletown from the sales tax on short-term parking services; and

BE IT FURTHER RESOLVED that the Town Clerk