DOR: Hotel tax collections ‘robust’ in August

THE R.I. DEPARTMENT OF REVENUE said 1 percent hotel tax collections rose 9.7 percent over the year in August, to $600,040, and 13.8 percent over the fiscal year, to $1.3 million. / COURTESY R.I. DEPARTMENT OF REVENUE
THE R.I. DEPARTMENT OF REVENUE said 1 percent hotel tax collections rose 9.7 percent over the year in August, to $600,040, and 13.8 percent over the fiscal year, to $1.3 million. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Local 1 percent hotel tax collections rose 9.7 percent year over year in August and 13.8 percent through the first two months of the fiscal year compared with the prior fiscal period, the R.I. Department of Revenue said Friday.

The state agency said 1 percent hotel tax collections grew to $600,000 in August, and $1.3 million through the first two months of the fiscal year.

The year-over-year increase in local 1 percent hotel tax collections for August was described as “robust” by the DOR, which noted it was nearly twice the year-over-year rate of growth posted in August 2015.

Despite the gains, collections decreased 12.5 percent from July to August. July collections totaled $685,792. DOR said part of the decline was due to a processing delay by the taxation department.

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The DOR also said the August revenue was likely understated, as not all local 1 percent hotel tax returns filed in September for August were processed in the month due to timing and capacity constraints. Certain August returns will be reported in September along with September returns, the state agency said.

Little Compton had the largest increase over the year in August for 1 percent hotel tax collections at 12,740.5 percent, followed by Charlestown, 219.4 percent, and Bristol, 172 percent. Woonsocket, Pawtucket and Jamestown had the largest percentage decreases at 89.5 percent, 75.5 percent and 32.2 percent, respectively.

New Shoreham, Providence and Narragansett had the largest nominal increases over the year at $17,376, $11,875 and $6,359, respectively, while Woonsocket, Pawtucket and Smithfield had the largest nominal decreases at $2,544, $2,205 and $526, respectively.

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