PROVIDENCE – Collections of the local 1 percent meal and beverage tax in Rhode Island increased 24.9 percent year over year in August, according to the R.I. Department of Revenue Monday.
Total collections for August were $3.4 million, $676,726 more than one year prior.
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Providence was the municipality in the state with the largest nominal increase in local 1 percent meal and beverage tax collection, increasing $138,942 year over year to $593,353. Providence’s increase was closely followed by Newport’s, which increased $129,895 year over year to a total of $480,145. Providence and Newport grossed the largest share of local 1 percent meal and beverage tax collections in August, followed by Warwick ($345,807).
New Shoreham’s nominal decline in local 1 percent meal and beverage tax collection was the largest in the state in August, falling $5,526 year over year to $120,385.
Fiscal year to date, collection of the local 1 percent meal and beverage tax in the state increased 11.4 percent year over year to $6.2 million in August, an increase of $631,535.
The tax is collected on the sale of a meal and/or beverage that is prepared away from home. The tax is collected by the R.I. Division of Taxation and redistributed to municipalities the month following the sales activity.
Chris Bergenheim is the PBN web editor.
