DOR: 1% hotel tax collections jump in Oct. on expansion

COLLECTION OF THE 1 PERCENT hotel tax in Rhode Island in October increased 40.9 percent year over year, largely driven by the expansion of the tax to include room resellers, vacation home rentals and online rental platforms. / PBN FILE PHOTO
COLLECTION OF THE 1 PERCENT hotel tax in Rhode Island in October increased 40.9 percent year over year, largely driven by the expansion of the tax to include room resellers, vacation home rentals and online rental platforms. / PBN FILE PHOTO

PROVIDENCE – Collection of the 1 percent hotel tax in October totaled $502,734, 40.9 percent higher than October 2016’s $356,897 collection, according to the R.I. Department of Revenue Wednesday.

Of October’s collection, $107,912 was attributed to the expansion of the hotel tax to include online room resellers, vacation home rentals and internet platforms. In 2016, the expansion accounted for $6,645.

In New Shoreham, 1 percent hotel tax collections increased $82,291 year over year to $84,882, the largest nominal increase of any municipality in October. The majority of collection ($78,557) in New Shoreham was attributed to realtors and homeowners.

Providence accounted for the largest collection of the 1 percent hotel tax with $120,040 in October.

- Advertisement -

Fiscal year to date, the state collected $2.6 million in October, a $408,221 increase year over year. The largest collections fiscal year to date in the Ocean State were in Newport ($665,929), Providence ($465,692), New Shoreham ($285,535), Middletown ($278,514) and Warwick ($237,830).

Chris Bergenheim is the PBN web editor.