Local 1% meal and beverage, hotel tax collections decline 33% Y/Y in July

COLLECTIONS of the local 1% hotel and meal and beverage taxes in July declined 32.4% and 23.4% year over year, respectively. / PBN FILE PHOTO/MARY MACDONALD
COLLECTIONS of the local 1% hotel and meal and beverage taxes in July declined 32.4% and 23.4% year over year, respectively. / PBN FILE PHOTO/MARY MACDONALD

PROVIDENCE – Collection of the Local 1% Meal and Beverage and Hotel taxes declined by nearly 33% year over year in July, amid the COVID-19 pandemic,  the R.I. Department of Revenue said Friday.

Collection of the 1% hotel tax declined from $862,292 in July 2019 to $582,853 in July this year. Month to month, the collection of the tax had increased by 121%, from $263,598 in June.

Of the collection in July, $395,006 in 1% hotel tax was attributable to traditional hotels, while another $32,209 came from room reselling and hosting platforms and $155,638 was collected from real estate agents and homeowners. The most nominally impacted municipality in the state year over year was Providence, where the collection of the tax declined $95,290 from one year prior, followed by Newport and Warwick, where collections declined $41,446 and $38,900 year over year, respectively.

Collection of the local 1% food and beverage tax in the state declined 23.4% year over year to $2.3 million. Providence was the most nominally impacted municipality in the state with a decline in collections of $175,558 year over year, followed by Newport, where collections declined $148,443.

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Collection of the 1% meal and beverage tax increased 13.8% from June, when collections totaled $2,026,658.

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