(Providence, RI), The Rhode Island Department of Revenue released its FY 2016 State 5.0 Percent Hotel Tax Collections Report for October 2015 today. The State 5.0 Percent Hotel Tax Allocation Report, which is issued on a monthly basis, compares the collections from the state's 5.0-percent hotel tax on a year-over-year, and fiscal year-to-date over fiscal year-to-date basis. The state 5.0-percent hotel tax is collected on the rental of rooms in the state and distributed based on the formula contained in Rhode Island General Law Chapter 44-63.1 entitled "Tourism and Development."
The August 2015 report may include state 5.0-percent hotel tax receipts generated from the expansion of the state hotel tax base to include the reselling of lodging by online travel companies and the unlicensed rental of accommodations via internet platforms and other media. It should be noted that state hotel tax receipts received from the unlicensed rental of accommodations via internet platforms and other media are divided between the municipality where the rental occurred (25 percent) and the Rhode Island Commerce Corporation (75 percent) only. At this time, the Office of Revenue Analysis is unable to determine the amount collected from each of these state 5.0-percent hotel tax base expansions and thus an unknown amount of receipts from these expansions may be included in this report. In addition, the FY 2016 state 5.0 percent hotel tax reports reallocate the general fund and the statewide tourism district's shares of the state 5.0 percent hotel tax to the Rhode Island Commerce Corporation. These transfers are reflected in the detail tables of the report.
Acting Director of Revenue Marilyn S. McConaghy, Esq. noted that "state hotel tax revenues posted modest growth year-over-year in October providing an additional $412,371 for the Rhode Island Commerce Corporation which will use the monies to execute a state level tourism promotion campaign, a high priority of the Governor." The Omni Providence Hotel showed strong growth in room rentals as state hotel taxes attributable to the hotel increased by 11.7 percent year-over-year, the second straight month of double digit year-over-year increases. Acting Director McConaghy stated that "FY 2016 year-to-date state hotel tax collections remain strong with growth of 12.8 percent from FY 2015 state hotel tax collections through October of last year. The truly astounding part is that the difference between FY 2016 and FY 2015 year-to-date state hotel tax collections has eclipsed $1,000,000, a metric that wasn't reached until April in FY 2015." On a fiscal year-to-date basis, state hotel tax collections have provided more than $2 million to the Rhode Island Commerce Corporation's tourism promotion and business attraction campaign. "The enhanced revenues for tourism promotion and business attraction should pay dividends in future months as visitations increase and out-of-state businesses are made aware of everything Rhode Island has to offer," said McConaghy.
The entire report can be found on the Department of Revenue's web site under the State Reports tab. The full report includes the break down by regional tourism district and municipality of state hotel tax collection distributions on a year-over-year and fiscal year to date-over-fiscal year to date basis.
Questions or comments on the report should be directed to Paul Grimaldi, Chief of Information and Public Relations by e-mail at paul.grimaldi@revenue.ri.gov or by phone at (401) 574-8766.