DOR: Hotel tax revenue climbs 21.3% in April

HOTEL TAX COLLECTIONS increased year over year in April and on a fiscal year over fiscal year basis, the state Department of Revenue said. / COURTESY R.I. DEPARTMENT OF REVENUE
HOTEL TAX COLLECTIONS increased year over year in April and on a fiscal year over fiscal year basis, the state Department of Revenue said. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – State hotel tax revenue increased 21.3 percent, or $176,921, in April to $1 million, according to the state Department of Revenue’s 5 percent hotel tax collections report.
Acting Director of Revenue David M. Sullivan said the year-over-year growth “bumped up significantly in April across the board.”
“This is consistent with anecdotal evidence that was related to us about strong room occupancy rates in March and April. This sharp increase is important as it provides those entities with the responsibility to promote tourism and enhance the visitor experience in Rhode Island with substantive resources at the onset of the summer season,” Sullivan said.

Of the $1 million collected, $373,669 went to regional tourism districts, $229,845 to municipalities, $216,831 to the state, $160,639 to the Providence Warwick Convention & Visitors Bureau, and $26,401 to the R.I. Convention Center Authority.

On a fiscal year-to-date basis through April, 5 percent hotel tax collections increased 8.7 percent to $13.8 million. Regional tourism districts received the largest share at $5.6 million, followed by municipalities at $3.2 million; the state, $2.9 million; Providence Warwick Convention & Visitors Bureau, $1.7 million; and R.I. Convention Center Authority, $251,978.
“Growth in fiscal year-to-date state hotel tax collections through April 2015 rebounded sharply resulting in the highest fiscal year-to-date over fiscal year-to-date growth rate for all of [fiscal] 305,” Sullivan said.
On a fiscal year-to-date basis, state hotel tax collections have boosted tourism promotion and visitor enhancement budgets statewide by nearly $600,000, he said.
The state 5 percent hotel tax is collected on the rental of rooms in the state and distributed based on a formula outlined in R.I. General Laws.

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