DOR: Meal, beverage, hotel tax collections rise in October, fiscal YTD

MEAL AND beverage tax collections, as well as hotel tax collections, grew over the year in October and on a fiscal year- to-date basis, the state Department of Revenue said. / COURTESY R.I. DEPARTMENT OF REVENUE
MEAL AND beverage tax collections, as well as hotel tax collections, grew over the year in October and on a fiscal year- to-date basis, the state Department of Revenue said. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Meal and beverage tax collections, as well as hotel tax collections, grew over the year in October and on a fiscal year-to-date basis, the state Department of Revenue reported Wednesday.
The DOR said 1 percent meal and beverage tax collections jumped 8.1 percent, to $2.1 million in October from $2 million in October 2014. The tax is collected on meals and beverages prepared away from home, and the amount of the tax is remitted, in full, to the municipality where it was consumed.
Meal and beverage tax collections also increased fiscal year over fiscal year by 7.3 percent, to $9.6 million from $8.9 million, the state agency said.
“Year-over-year growth for October 2015 was quite strong, increasing at a rate that was more than double the year-over-year growth rate achieved in October of [fiscal] 2015. We suspect that continued low gasoline and energy prices have provided consumers with extra income that is being spent on meals and beverages away from home,” Acting Director of Revenue Marilyn S. McConaghy said in a statement.
As for 1 percent hotel tax collections, they rose nearly 6 percent, to $385,067 in October from $364,082 in October 2014. Comparing fiscal year to fiscal year, 1 percent hotel tax collections jumped 12.8 percent, to $1.9 million from $1.7 million.
The 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, the DOR said.

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