Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2018 State 5.0 Percent Hotel Tax Collections Report for August 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 August 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 August 2017 Report The findings of the August 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 8.5 percent, slightly above the 7.0 percent year-over-year increase reported for August 2016; o August 2017 state hotel tax collections include $70,978 of receipts from room rentals via hosting platforms and on-line travel companies vs. $1,848 collected for August 2016; • All tourism districts, other than Northern Rhode Island and Statewide, received less in state 5.0 percent hotel tax collections for August 2017 than for August 2016; o The regional tourism districts received $15,200 in revenues from the expansion of the state hotel tax base to room resellers and hosting platforms for August 2017 vs. $869 received for August 2016. The August 2016 figure does not include any revenues generated from these sources in the City of Newport; • Rhode Island Commerce Corporation (CommerceRI) received $265,707 more year-over-year in state hotel tax revenue for August 2017 than for August 2016; o CommerceRI collected $33,481 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. $388 for August 2016.
^ August 2017 total state hotel tax collections include $70,978 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $15,200; Municipalities, $17,734; Rhode Island Commerce Corporation, $33,481; and Providence Warwick Convention & Visitors Bureau, $4,563. * August 2016 total state hotel tax collections include $1,848 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $869; Municipalities, $462; Rhode Island Commerce Corporation, $388; and Providence Warwick Convention & Visitors Bureau, $129.
Fiscal Year-to-Date-Over-Fiscal Year-To-Date Results of the August 2017 Report The findings of the August 2017 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 through August growth in state hotel tax receipts was 6.8 percent, double the 3.4 percent fiscal year-to-date-over-fiscal year-to-date increase reported for FY 2017; o FY 2018 through August state hotel tax collections include $160,319 of receipts from room rentals via hosting platforms and on-line travel companies vs. $48,246 collected for FY 2017 through August; • All tourism districts, other than Northern Rhode Island, received less in state 5.0 percent hotel tax collections for FY 2018 through August than for FY 2017 through August; o The regional tourism districts received $40,691 in revenues from the expansion of the state hotel tax base to room resellers and hosting platforms for year-to-date FY 2018 vs. $19,326 received for year-to-date FY 2017. The fiscal year-to-date through August 2016 figure does not include any revenues generated from these sources in the City of Newport; • Rhode Island Commerce Corporation (CommerceRI) received $503,433 more fiscal year-to-date-over-fiscal year-to-date in state hotel tax revenue for FY 2018 than for FY 2017; o CommerceRI collected $86,155 in year-to-date FY 2018 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. $10,132 for year-to-date FY 2017. The fiscal year-to-date-over-fiscal year-to-date state hotel tax revenue allocation is summarized in Table 2 below:
^ FY 2018 year-to-date total state hotel tax collections include $160,319 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $40,691; Municipalities, $46,274; Rhode Island Commerce Corporation, $86,155; and Providence Warwick Convention & Visitors Bureau, $12,094. * FY 2017 year-to-date total state hotel tax collections include $48,246 in revenues from the expansion of the state hotel tax base broken down as follows: regional tourism districts: $19,326; Municipalities, $12,061; Rhode Island Commerce Corporation, $10,132; and Providence Warwick Convention & Visitors Bureau, $6,727.
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.