Study: R.I. third-highest state tax rate on lodging in 2013, Providence No. 76

PROVIDENCE – Rhode Island had the third highest tax rate on lodging last year, according to HVS Convention, Sports, and Entertainment Consulting’s third annual lodging tax study released this week.
Rhode Island, with a sales tax of 7 percent and lodging tax of 6 percent, ranked No. 3 for its 13 percent overall rate, behind No. 1 Connecticut with its 15 percent total tax rate, and No. 2 Hawaii with a total rate of 13.25 percent.
Maine and New Jersey tied for fourth with a 12 percent total rate, and New Hampshire and Vermont were next, at 9 percent. Massachusetts ranked No. 29 for a 5.7 percent total rate.
The study said that every state except Alaska and California – where lodging taxes are levied only at the municipal level – imposes a sales tax, a lodging tax, or both on overnight transient accommodations. Alaska and California were last on the list.

In a listing of the top 150 urban centers, Providence ranked No. 76 for its 13 percent total lodging tax rate. Coming in at No. 1 was St. Louis for its 21.97 percent total lodging tax rate. Ranking last was Lancaster, Calif., for a 7 percent rate.

In a ranking of the top 20 states with the highest lodging tax revenue in 2013, Texas placed first with $450 million, followed by Hawaii with $354.1 million; Illinois, $222.8 million; and Massachusetts, $194.6 million. Rhode Island was No. 16 with $12.1 million.
Counting only lodging tax revenue in 2013, and not sales tax, Providence collected $1.52 million in 2013.
In a snapshot about Rhode Island, the report states that the lodging tax rate was raised from 5 percent to 6 percent for fiscal 2005, with the additional 1 percent allocated to the city or town in which the hotel is located. Hotels with fewer than three rooms are exempt from the tax.
HVS identified lodging tax rates levied at the state, county, city and special district levels, and the collection and distribution of revenue from lodging taxes levied in all 50 states and in the 150 largest cities in the United States for its study results.

Read the entire study HERE.

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