PROVIDENCE – Collections of the state 5% hotel tax totaled declined 59.7% year over year to $501,312 in November, the R.I. Department of Revenue said Monday.
The drop in collections reflects the dramatic impact on the tourism and hospitality sectors in Rhode Island amid the COVID-19 pandemic. The tax is levied on the rental of rooms in traditional hotels and motels, as well as the rental of rooms as transient lodging by room resellers and via hosting platforms.
Of the collection, $476,986 came from traditional hotels while $24,325 came from hosting platforms and room resellers.
Allocation of the tax in November:
- Regional tourism districts were allocated $195,609 of the tax collections in November, the largest share of which went to the Aquidneck Island tourism district ($79,958).
- Municipalities were allocated $125,322 in November. The largest collection of the 5% tax occurred in Newport in November at $29,463. The largest nominal year-over-year decline occurred in Providence, where collections of the tax declined by $71,502 to $16,270 in November.
- R.I. Commerce Corp. was allocated $127,479 of the tax in November.
- The Providence Warwick Convention & Visitors Bureau was allocated $52,902.
In the first 11 months of 2020, collection of the 5% hotel tax totaled $7.4 million, a decline of 41.3% during the same period in 2019.
