PROVIDENCE – Combined collections of the local 1% meal and beverage and hotel taxes declined 26.2% year over year to $1.7 million, the R.I. Department of Revenue said Friday.
The decline in collections reflect the effects of the COVID-19 pandemic, including accompanying restrictions on the state’s hospitality sectors.
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The 1% meal and beverage collections totaled $1.6 million for the month, a 7.4% decline year over year. Restaurant restrictions in February 2021 included capacity-limits, early- closure requirements, dining time limits and party-size limits. There were no restrictions in place as of February 2020.
The largest nominal decline in collections in any municipality year over year took place in Providence, with collections declining $149,836 in that time, to $334,508. The city also had the largest collection of the tax in February of all municipalities.
Collection of the tax fiscal year to date totaled $16 million, a 20% decline from collections one year prior.
The total collection of local 1% hotel taxes in February totaled $139,243, a 36.9% decline year over year. Of the collection, $93,810 came from traditional hotels, while $10,550 came from room resellers and hosting platforms and $34,884 came from Realtors and homeowners, the only source of the three that increased year over year.
Providence also had the largest nominal year-over-year collection of the 1% hotel tax of any municipality in February, declining $53,294 to $16,905. The largest collection of the tax occurred in Newport at $35,903 for the month.
Fiscal year to date in February, collection of the local hotel tax totaled $2.2 million, a 40.9% decline year over year.
