Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2017 Local 1.0 Percent Hotel Tax Collections Report for March 2017. The Local 1.0 Percent Hotel Tax Collections Report, which is issued on a monthly basis, compares the collections from the state's local 1.0 percent hotel tax on a month-to-month, year-over-year, and fiscal year-to-date over fiscal year-to-date basis. The local 1.0 percent hotel tax is collected on the rental of rooms in the state and remitted, in full, to the municipality in which the room rental was located.
Expansion of the Local 1.0 Percent Hotel Tax Base The March 2017 report includes the local 1.0 percent hotel tax collections generated by the rental of lodging via hosting platforms and by on-line travel companies (room resellers) and vacation home rentals by homeowners and realtors for all municipalities. For all municipalities other than the City of Newport, the local 1.0 percent hotel tax collections from these rentals covers the period of July through September 2016 by month and July 2016 through March 2017 on a fiscal year-to-date basis. In FY 2016, the same data was provided only on a fiscal year-to-date basis for July 2015 through December 2015. For the City of Newport, local 1.0 percent hotel tax collections from these rentals covers July 2015 through March 2016 by month and on a fiscal year-to-date basis and by month for October 2016 through March 2017. No data was provided on the breakdown of these rentals for July through September 2016.
Highlights from the report as noted by Director of Revenue Robert S. Hull were • Local 1.0 percent hotel tax collections were up 57.6 percent between March 2017 and February 2017, above the 38.9 percent increase experienced in FY 2016 between March 2016 and February 2016; o March 2017 cash collections include $93,336 in receipts attributable to the local 1.0 percent hotel tax base expansion vs. $19,515 accounted for in February 2017. It should be noted that the March 2017 expanded local hotel tax base cash collections reflect room rental activity that occurred in February and March 2017. • Year-over-year increase in local 1.0 percent hotel tax collections for March 2017 was strong at 26.5 percent but below the 29.4 percent year-over-year growth rate posted in March 2016; o Year-over year local 1.0 percent hotel tax collections in March 2017 incorporate $93,336 of receipts generated from the local 1.0 percent hotel tax base expansion vs. $7,976 recorded in March 2016. • FY 2017 year-to-date through March local 1.0 percent hotel tax collections were 12.9 percent greater than the same period in FY 2016, a gain of $365,709 and slightly above the 12.2 percent growth experienced in FY 2016 year-to-date through March; o Year-to-date through March 2017 local 1.0 percent hotel tax collections include $391,074 from the expansion of the local 1.0 percent hotel tax base to room resellers and hosting platforms and realtors and homeowners. For the same period through March 2016, the comparable figure is $73,930.
The entire report can be found on the Department of Revenue's web site at http://www.dor.ri.gov/revenue-analysis/2017.php under the Local Reports tab. The full report includes the break down by municipality of local hotel tax collections on a month-to-month, 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.