Providence, R.I. --The Rhode Island Department of Revenue on Dec. 5 released its FY 2018 State 5.0 Percent Hotel Tax Collections Report for July 2017. 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 July 2017 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) for all municipalities. The City of Newport did not provide a breakdown of state 5.0 percent hotel tax collections for hosting platforms and room resellers for July through September 2016.
Changes in the Distribution of the State 5.0 Percent Hotel Tax Revenues Rhode Island General Law Chapter 42-63.1 titled "Tourism and Development" provides that for state hotel tax returns and payments received after June 30, 2016 but prior to July 1, 2017 the distribution of state hotel tax revenues will be as provided for in Rhode Island General Law Section 42-63.1-3(a) while for returns and payments received after June 30, 2017 the distribution of state hotel tax revenues will be as provided for in Rhode Island General Law Section 42-63.1-3(b).
In general, the formula for the distribution of state hotel tax revenues to the various recipients for returns and payments received is as follows: • Regional tourism districts: After June 30, 2016 and prior to July 1, 2017, 47 percent; After June 30, 2017, 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: After June 30, 2016 and prior to July 1, 2017, 31 percent; After June 30, 2017, 28 percent; • The Providence Warwick Convention & Visitors Bureau's share from hotels located outside of Providence and Warwick: After June 30, 2016 and prior to July 1, 2017, seven percent; After June 30, 2017, five percent; • The Rhode Island Commerce Corporation's share from hotels located outside of Providence and Warwick: After June 30, 2016 and prior to July 1, 2017, 21 percent; After June 30, 2017, 28 percent; and • The Rhode Island Commerce Corporation's share from hotels located in Providence and Warwick, except the Omni Providence Hotel: After June 30, 2016 and prior to July 1, 2017, 21 percent; After June 30, 2017, 24 percent.
Year-Over-Year Results of the July 2017 Report The findings of the July 2017 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 5.1 percent, well above the 0.0 percent year-over-year increase reported for July 2016; o July 2017 state hotel tax collections include $114,275 of receipts from room rentals via hosting platforms and on-line travel companies vs. $46,402 collected for July 2016; • All tourism districts, other than Aquidneck Island received less in state 5.0 percent hotel tax collections for July 2017 than for July 2016; o The regional tourism districts received $25,492 in revenues from the expansion of the state hotel tax base to room resellers and hosting platforms for July 2017 vs. $18,457 received for July 2016. The July 2016 figure does not include any revenues generated from these sources in the City of Newport; • Rhode Island Commerce Corporation (CommerceRI) received $237,726 more year-over-year in state hotel tax revenue for July 2017 than for July 2016; o CommerceRI collected $52,673 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 vs. $9,744 for July 2016. ^ July 2017 total state hotel tax collections include $114,275 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $25,492; Municipalities, $28,579; Rhode Island Commerce Corporation, $52,673; and Providence Warwick Convention & Visitors Bureau, $7,532. * July 2016 total state hotel tax collections include $46,402 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $18,457; Municipalities, $11,604; Rhode Island Commerce Corporation, $9,744; and Providence Warwick Convention & Visitors Bureau, $6,597.
Fiscal Year-to-Date-Over-Fiscal Year-To-Date Results of the July 2017 Report Given that July is the first month of the fiscal year, the year-over-year and fiscal year-to-date-over-fiscal year-to-date results are identical.
The entire report can be found on the Department of Revenue's web site at http://www.dor.ri.gov/revenue-analysis/2018.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.