DOR: 1% meal and beverage, hotel tax collections rise in March

LOCAL 1 percent meal and beverage tax collections, and 1 percent hotel tax collections grew year over year in March, 11.3 percent and 29.4 percent, respectively. / COURTESY R.I. DEPARTMENT OF REVENUE
LOCAL 1 percent meal and beverage tax collections, and 1 percent hotel tax collections grew year over year in March, 11.3 percent and 29.4 percent, respectively. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Local 1 percent meal and beverage tax collections, and 1 percent hotel tax collections grew year over year in March, 11.3 percent and 29.4 percent, respectively.
The R.I. Department of Revenue said Thursday that 1 percent meal and beverage tax collections increased to $2 million in March from $1.8 million in March 2015. The local 1 percent meal and beverage tax is collected on the sale of a meal and/or beverage prepared away from home; the amount of tax collected is remitted, in full, to the municipality in which the meal and/or beverage is consumed.

Providence brought in $462,605 in local 1 percent meal and beverage tax collections, a 6.8 percent increase from March 2015.

The agency said 1 percent hotel tax collections climbed to $215,074 in March from $166,249 in March 2015. The local 1 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.
In a press release, DOR Director Robert S. Hull said that the year-over-year increase in local 1 percent hotel tax collections for March “was robust” at 29.4 percent, and “significantly higher” than the 4 percent year-over-year increase posted in March 2015.

Providence received $73,447 in local hotel tax collections, a 13.6 percent increase over the year.

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Comparing the first nine months of the fiscal year with the previous fiscal period, local 1 percent meal and beverage tax collections rose 8.7 percent, to $18.9 million.
During that same time frame, 1 percent hotel tax collections climbed 12.2 percent, to $2.8 million.

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