Local 1% hotel tax collections rise 14.4% fiscal YTD in October in R.I.

THE R.I. DEPARTMENT OF REVENUE said local 1 percent hotel tax collections climbed 14.4 percent in the first four months of the fiscal year compared with the previous fiscal period. / COURTESY R.I. DEPARTMENT OF REVENUE
THE R.I. DEPARTMENT OF REVENUE said local 1 percent hotel tax collections climbed 14.4 percent in the first four months of the fiscal year compared with the previous fiscal period. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Local 1 percent hotel tax collections grew 14.4 percent in the fiscal period through October compared with the prior fiscal period, but fell 0.8 percent when comparing the month of October with October 2016, the R.I. Department of Revenue said last week.

The DOR said that due to timing and capacity constraints, not all local 1 percent hotel tax returns filed in October for September were processed in the month, meaning that the revenue from the rental of lodging in October is “likely understated.”

Fiscal year to date, local 1 percent tax collections totaled $2.2 million, compared with $1.9 million in the prior fiscal period. That was ahead of 12.8 percent growth reported in the previous fiscal year comparison period, the state agency said.

While the state agency described the year-over-year decline in collections as “slight,” it did say it was below the previous year-over-year growth from October 2014 to October 2015 of nearly 6 percent.

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Collections in October alone totaled $356,897, compared with October 2015’s $359,876.

In October, Little Compton led the state with a 3,779 percent increase over the year in local 1 percent hotel tax collections, followed by North Kingstown with a 902.6 percent increase and Charlestown with a 112.9 percent increase.

Pawtucket had the largest decrease over the year at 100 percent, followed by New Shoreham at 52.9 percent and Scituate at 51.9 percent.

North Kingstown had the largest nominal increase over the year in local 1 percent hotel tax collections at $5,413, followed by Westerly at $2,712 and Middletown, $2,350. New Shoreham had the largest nominal decrease at $2,915, followed by South Kingstown, $2,791, and Pawtucket, $2,643.

Fiscal year over fiscal year, Little Compton again led communities with a 13,070.1 percent increase, followed by Charlestown with a 369.1 percent increase and Narragansett with a 242.2 percent increase.

Pawtucket, North Smithfield and Smithfield had the largest fiscal year over fiscal year percentage decreases at 89.5, 39.1 and 15.6 percent, respectively.

Narragansett had the largest nominal increase over the fiscal year at $79,404, followed by New Shoreham at $42,646, and Westerly, $31,337. Pawtucket, Smithfield and Woonsocket had the largest nominal decreases over the fiscal year at $10,246; $4,595; and $1,103, respectively.

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