5% hotel tax collection plummets 70% Y/Y in April

COLLECTION OF the 5% hotel tax in Rhode Island in April 70.3% year over year in April to $408,831. / PBN FILE PHOTO/JAMES BESSETTE
COLLECTION OF the 5% hotel tax in Rhode Island dropped 70.3% year over year in April, to $408,831. / PBN FILE PHOTO/JAMES BESSETTE

PROVIDENCE – Collection of the 5% hotel tax in Rhode Island declined 70.3% year over year in April to $408,831, the R.I. Department of Revenue said Tuesday.

The decline reflects a sharp downturn in hotel occupancy caused by the COVID-19 pandemic. 

Traditional hotels accounted for the majority of collections at $405,173. Hosting platforms and room resellers accounted for $3,658 in collection in April.

  • Of the collection, regional tourism districts were allocated $156,977 in April. The largest recipient of any tourism district in the state was South County, receiving $73,725. The largest nominal decline in allocation for a regional tourism district was for Aquidneck Island, with collections declining $167,203 year over year, to $18,538.
  • Municipalities were allocated $102,208 of the tax. South Kingstown had the largest allocation of any municipality for the month at $23,134. The largest nominal decline for a municipality in April year over year was in Newport, where collections declined $70,568 from one year prior to $2,046.
  • The R.I. Commerce Corp. was allocated $103,010 of the 5% hotel tax collection.
  • The Providence Warwick Convention & Visitors Bureau was allocated $46,636.

Fiscal year to date in April, collection of the 5% hotel tax declined 5.3%, to $16.4 million.

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