Collection of 5% hotel tax declines 34.7% Y/Y in Aug.

PROVIDENCE – Collection of the 5% hotel tax in August totaled $2.2 million, a 34.7% decline year over year, the R.I. Department of Revenue said on Thursday.

The decline reflects the impact of COVID-19 on the state’s hospitality industry as it continued through the summer months.

Collection from traditional hotels totaled $2.1 million in August, while collections from hosting platforms and room sellers totaled $142,731.

Allocation of the tax to regional tourism districts totaled $88,474, with the largest share going to Aquidneck Island at $462,867, a decline from $661,721 one year prior.
Allocation to municipalities totaled $524,903, with the largest share going to Newport at $179,878. The largest nominal decline year over year of allocation to any municipality happened in Providence, where collections declined $70,061 to $41,433.

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R.I. Commerce Corp. was allocated $564,392 from the tax in August and the Providence Warwick Convention & Visitors Bureau was allocated $167,735.

Fiscal year to date, collection of the 5% hotel tax in August totaled $4.4 million, a 35.6% decline from fiscal year collections in August 2019.