5% hotel tax collection in R.I. soars 75% Y/Y in Sept.

COLLECTION OF the 5% hotel tax in Rhode Island in September increased 75% year over year to $2.9 million. / PBN FILE PHOTO/JAMES BESSETTE

PROVIDENCE – Collection of the 5% hotel tax in Rhode Island in September increased 75% year over year to $2.9 million, according to the R.I. Department of Revenue.

The figures reflect an ongoing rebound for the hospitality industry after being decimated by the COVID-19 pandemic.

Of the total, just over $2.7 million came from traditional hotels and $133,000 came from hosting platforms and room resellers.

Tourism districts in the state were allocated $1.2 million of the tax collection for the month. Of all tourism districts in the state, Aquidneck Island was allocated the largest amount of the tax at $635,000.

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Municipalities were allocated $663,000 of the tax in September, with the largest allocation going to Newport at $246,000. Newport also had the largest year-over-year growth in allocation of the tax, rising $95,000 from one year prior.

R.I. Commerce Corp. was allocated $735,500 of the tax in September.

The Providence Warwick Convention & Visitors Bureau was allocated $265,000 of the tax for the month.

Fiscal year to date, collection of the 5% hotel tax in September rose to $10.7 million, a jump of 78% or $4.7 million from collection totals at that time one year prior.

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