Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2016 State 5.0 Percent Hotel Tax Collections Report for April 2016. 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."
Expansion of the State 5.0 Percent Hotel Tax Base The April 2016 report includes the state 5.0 percent hotel tax collections generated by the rental of lodging via hosting platforms and by on-line travel companies (room resellers). The state 5.0 percent hotel tax collections from these rentals covers the period of July 1, 2015 through December 31, 2015 inclusive for all municipalities other than the City of Newport. For the City of Newport, state 5.0 percent hotel tax collections from these rentals covers the period of July 1, 2015 through April 30, 2016 inclusive.
Changes in the Distribution of the State 5.0 Percent Hotel Tax Revenues Rhode Island General Law 42-63.1-3(b) titled "Tourism and Development – Distribution of tax" provides that for state hotel tax returns and payments received after December 31, 2015 the distribution of state hotel tax revenues would follow the new formula enacted into law by the General Assembly in the 2015 session. The state hotel tax revenue from December 2015 through March 2016 hotel room rental activity was received after January 1, 2016 and thus the new formula applies to the FY 2016 December through March revenue collections contained in this report.
In general, the new formula changes the share of state hotel tax revenues allocated to the various recipients as follows: • Regional tourism districts' share decreases from 47 percent to 42 percent; • The Convention Authority of Providence and the Warwick Department of Economic Development shares from hotels located in each respective city, except the Omni Providence Hotel, decrease from 31 percent to 28 percent; • The Providence Warwick Convention & Visitors Bureau's share from hotels located outside of Providence and Warwick decreases from seven percent to five percent; • The Rhode Island Convention Center Authority's share from the Omni Providence Hotel decreases from 30 percent to zero percent; • The Rhode Island Commerce Corporation's share from hotels located outside of Providence and Warwick increases from 21 percent to 28 percent; its share from hotels located in Providence and Warwick, except the Omni Providence Hotel, increases from 21 percent to 24 percent; and its share from Omni Providence Hotel increase from 27 percent to 60 percent.
The findings of the April 2016 State 5.0 Percent Hotel Tax Collections Report on a year-over-year basis are: • Year-over-year growth in state hotel tax receipts was 2.9 percent, well below the 29.4 percent year-over-year increase reported in March 2016; o April 2016 state hotel tax collections include $13,036 of receipts from room rentals via hosting platforms and on-line travel companies; • Only the Aquidneck Island and Block Island tourism districts received more state 5.0 percent hotel tax collections in April 2016 than in April 2015; o The Aquidneck Island tourism district received $5,475 in increased revenues from the expansion of the state hotel tax base to room resellers and hosting platforms; • Rhode Island Commerce Corporation (RICC) received $55,789 more year-over-year in state hotel tax revenue than was deposited as state general revenues for April 2015; o RICC collected $3,650 more in state hotel taxes from the assessment of the state 5.0 percent hotel tax on room rentals via hosting platforms and by room resellers.
The findings of the April 2016 State 5.0 Percent Hotel Tax Collections Report on a fiscal year-to-date over fiscal year-to-date basis are: • Fiscal year-to-date over fiscal year-to-date growth in state hotel tax receipts remained at 12.2 percent, the same as in the March 2016 report; o Fiscal year-to-date through April 2016 state hotel tax collections include $192,352 of receipts from room rentals via hosting platforms and on-line travel companies; • Rhode Island Commerce Corporation's share of state hotel taxes were $668,555 more on a fiscal year-to-date basis for FY 2016 than the amount deposited as state general revenues for the same period in FY 2015; o RICC collected $42,490 more in state hotel taxes from the assessment of the state 5.0 percent hotel tax on room rentals via hosting platforms and by room resellers. • The regional tourism districts received $520,848 more in state hotel tax collections in FY 2016 through April vs. the same period last year, growth of 9.5 percent; o Expansion of the state 5.0 percent hotel tax base to hosting platforms and room resellers increased sate hotel tax collections for the regional tourism districts by $80,412. The fiscal year-to-date over fiscal year-to-date state hotel tax revenue allocation is summarized in Table 2 below: 2. April Fiscal year-to-date over fiscal year-to-date Summary of Findings: Recipient of Hotel Tax FY 2016 Year-to-Date* FY 2015 Year-to-Date Nominal Difference Percentage Difference Regional Tourism Districts $ 5,993,783 $ 5,472,935 $ 520,848 9.5 % Municipalities 3,561,621 3,167,713 393,907 12.4 % State of Rhode Island 0 2,887,659 (2,887,659) 100.0 % Rhode Island Commerce Corp. 3,556,204 0 3,556,204 n/a Providence Warwick Convention & Visitors Bureau 1,876,644 1,730,494 146,150 8.4 % RI Convention Center Authority 165,897 251,978 (86,080) 34.2 % Total $ 15,154,148 $ 13,510,779 $ 1,643,370 12.2 %
Please note: April 2016 total state hotel tax collections include $13,065 in revenues from the expansion of the state hotel tax base broken down as follows: Aquidneck Island tourism district: $5,475; Municipalities, $3,259; Rhode Island Commerce Corporation, $3,650; and Providence Warwick Convention & Visitors Bureau, $652. FY 2016 year-to-date through April total state hotel tax collections include $192,352 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $80,412; Municipalities, $48,088; Rhode Island Commerce Corporation, $42,490; and Providence Warwick Convention & Visitors Bureau, $21,362.
The entire report can be found on the Department of Revenue's web site at http://www.dor.ri.gov/revenue-analysis/2016.php 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.