DOR: 5% hotel tax revenue grows in March, fiscal YTD

THE R.I. DEPARTMENT OF REVENUE said collections from the state 5 percent hotel tax collections report grew 29.4 percent year over year in March, and 12.2 percent when comparing this fiscal year to the prior fiscal period. / COURTESY R.I. DEPARTMENT OF REVENUE
THE R.I. DEPARTMENT OF REVENUE said collections from the state 5 percent hotel tax collections report grew 29.4 percent year over year in March, and 12.2 percent when comparing this fiscal year to the prior fiscal period. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Revenue from the state 5 percent hotel tax collections grew 29.4 percent year over year in March, and 12.2 percent when comparing this fiscal year to the prior fiscal period.
The R.I. Department of Revenue released its fiscal 2016 5 percent hotel tax collections report for March on Friday. The state 5 percent hotel tax is collected on the rental of rooms in the state and distributed based on a formula. Due to a formula change, the R.I. Commerce Corp. now receives revenue that previously was earmarked as state general revenue, and the Rhode Island Convention Center Authority no longer receives funding from this source.
According to the DOR, the year-over-year growth in state hotel tax receipts in March marked a significant increase from February 2016’s year-over-year growth of 11.3 percent.
The 5 percent hotel tax brought in $1.1 million in March, compared with $831,246 in March 2015.
Regional tourism districts, municipalities, the R.I. Commerce Corp. and Providence Warwick Convention & Visitors Bureau all share revenue from the 5 percent hotel tax, with regional tourism districts receiving the largest share in March at $371,044, a 19.6 percent increase compared with last year. Municipalities received $247,624, a 33.3 percent increase over last year, and Commerce RI received $308,627 – in March 2015 it did not receive revenue from the 5 percent hotel tax. The Providence Warwick Convention & Visitors Bureau saw a nearly 15 percent increase in funding, to $148,076.
Five percent hotel tax collections rose 12.2 percent, to $13.9 million during the first nine months of the fiscal year compared with $12.4 million during the prior fiscal period.

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