Meal and beverage, hotel tax collections, rise in Nov., fiscal YTD

PROVIDENCE – One percent meal and beverage tax collections, and 1 percent hotel tax collections, increased year over year in November and over the fiscal-year period, the state Department of Revenue said this week.

Collections from the state’s local 1 percent meal and beverage tax grew 9.6 percent year over year in November to $1.97 million, while collections rose 7.7 percent fiscal year to date over fiscal YTD to $11.5 million.

Local 1 percent hotel tax collections rose nearly 14 percent year over year to $263,219, and nearly 13 percent during the first five months of the fiscal year compared with the same fiscal period a year ago to $2.2 million.

Acting Director of Revenue Marilyn S. McConaghy called 1 percent hotel tax collections “robust.”
“The comparable figures for last year at this time were 10.9 percent and 8.1 percent, respectively, so for the November report, [fiscal] 2016 shows improved performance in local 1 percent hotel tax collections,” she said in a statement.

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The state agency also released its 5 percent hotel tax collections report, showing a 13.8 percent increase to $1.3 million in November compared with $1.2 million in November 2014.

“State hotel tax revenues posted strong growth year over year in November, providing an additional $281,443 for the R.I. Commerce Corp., which will use the monies to execute a state-level tourism promotion and business attraction campaign, a high priority of the governor,” McConaghy said.
Through the first five months of the fiscal year, 5 percent hotel tax collections rose 12.9 percent to $11 million compared with $9.8 million during the same fiscal period a year ago.

“At this rate, [fiscal] 2016 looks likes it will be a record breaking year,” McConaghy said.

The DOR said the hotel reports may include tax receipts generated from the expansion of the local hotel tax to include the reselling of lodging by online travel companies, unlicensed rental of accommodations via the Internet and vacation home rentals, but was unable to determine exactly how much.

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