PROVIDENCE – Jan. revenue from the state 5.0 percent hotel tax was 2.4 percent, an increase of $16,336, year over year to $702,847, the R.I. Department of Revenue said in a press release Thursday.
The increase in revenue is a 4.8 percentage point slow-down of year-over-year growth from Dec. 2016.
Furthermore, the fiscal year 2017 collection of the tax on short-term rental and hosting site rentals, an expansion of the 5.0 percent tax passed in 2015, was reported in four month intervals. Jan. 2017 state hotel tax collections include $73,416 of receipts for the months of Oct. 2016 through Jan. 2017 from room rentals via hosting platforms and on-line travel companies, compared to just $5,221 in Jan. 2016. Therefore, this element of the increase of reported revenue for Jan. 2017 is inflated, as figures from the previous year reflect only one month of collection as opposed to four.
Regional tourism district revenue increased 4.4 percent, $10,116, year over year in January. The press release noted that regional tourism districts received more revenue in Jan. 2017 than Jan. 2016, in part due to an increased share in the 5.0 percent tax from 42 percent to 47 percent in fiscal year 2017.
The regional tourism districts with the largest nominal increases in tourism district revenue were the Convention Authority of Providence, which increased $9,976 year over year, and the Warwick Department of Economic Development, which increased its Jan. revenue $8,179 year over year. Block Island, where Jan. revenue increased $2,325, experienced a 785.8 percent uptick in revenue year over year.
The largest nominal decreases in 5.0 percent hotel tax district collection occurred in Aquidneck Island, with a decline of $6,985. Aquidneck Island has collected $2.27 million year to date in Jan., the largest recipient of the tourism districts’ share of 5.0 tax revenue in the state.
The report said that Providence was the municipality in Rhode Island that experienced the largest nominal uptick in Jan. year over year, increasing $7,938, while Newport saw the largest decline, collecting $12,329 less in Jan. 2017 than Jan. 2016. Newport collected $851,815 fiscal year to date in January, the largest portion of the municipalities share of the 5.0 hotel tax revenue.
Fiscal year to date in Jan. 2017, 5.0 percent hotel tax collections increased 3.2 percent, $391,494 to 12.56 million. Fiscal year to date growth in January remained nearly level with year to date growth in Dec., declining 0.1 percentage point.
Chris Bergenheim is the PBN web editor.
