Meal and beverage tax collections sink in October, but rise fiscal YTD

THE R.I. DEPARTMENT OF REVENUE said local 1 percent meal and beverage collections fell 8.9 percent over the year in October when compared with October 2015, but increased 2.8 percent when comparing the first four months of the fiscal year with the previous fiscal year period. / COURTESY R.I. DEPARTMENT OF REVENUE
THE R.I. DEPARTMENT OF REVENUE said local 1 percent meal and beverage collections fell 8.9 percent over the year in October when compared with October 2015, but increased 2.8 percent when comparing the first four months of the fiscal year with the previous fiscal year period. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Local 1 percent meal and beverage tax collections declined nearly 9 percent in October compared with October 2015, the R.I. Department of Revenue said Thursday.

Collections declined to $1.95 million from $2.14 million a year ago. However, collections increased 2.8 percent on a fiscal year-to-date basis, to $9.8 million from $9.6 million during the previous fiscal period.

The tax is collected on sales of meals and or beverages prepared away from home.
The state agency described the year-over-year drop in collections as “concerning,” noting that collections increased 8.1 percent when comparing October 2015 with October 2014. It also described the growth fiscal year over fiscal year as “anemic,” because during the prior fiscal year comparison period, collections increased 7.3 percent.

Bristol had the highest percentage increase in collections over the year in October at 28.7 percent, to $41,341. Hopkinton had the greatest percentage decrease at 80.4 percent, to $1,394.

- Advertisement -

Bristol also had the largest nominal increases at $9,215. Providence had the largest nominal decrease at $38,618, to $432,674.

Comparing the first four months of the fiscal year with the previous fiscal period, East Greenwich led collections with a 61.2 percent increase, and a $149,482 nominal increase, to $393,708. Scituate had the largest percentage decrease over the fiscal year at 29.9 percent, to $18,913, while North Kingstown had the largest nominal decrease at $20,353, to $184,391.

No posts to display