DOR: Meal, beverage, hotel 1% tax collections increase over the year in December, FYTD

THE R.I. DEPARTMENT of Revenue said local 1 percent meal and beverage tax collections, and local 1 percent hotel tax collections, increased year over year in December, and on a fiscal year to date basis. / COURTESY R.I. DEPARTMENT OF REVENUE
THE R.I. DEPARTMENT of Revenue said local 1 percent meal and beverage tax collections, and local 1 percent hotel tax collections, increased year over year in December, and on a fiscal year to date basis. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – One percent meal and beverage tax collections increased 8.1 percent, and 1 percent hotel tax collections rose 3.9 percent, when comparing December with December 2014, the state Department of Revenue said this week.
December meal and beverage tax collections climbed to $1.9 million, which Director of Revenue Robert S. Hull called “strong.” Fiscal year to date over fiscal year to date, collections grew 7.7 percent.
Comparing November and December, collections declined 2.9 percent, however, which Hull described as “pretty modest.”
This tax is collected on the sale of meals and beverages prepared away from home and the amount of tax is remitted, in full, to the municipality in which the meal and/or beverage is consumed.
As for the hotel tax, it climbed 3.9 percent to $145,176 in December compared with $139,747 in December 2014, and 11.7 percent when comparing the first six months of the fiscal year to the prior fiscal year period, to $2.3 million from $2 million.
The hotel tax fell 32.3 percent month over month, as collections totaled $214,366 in November.
“The decline in month-to-month local 1 percent hotel tax collections is not surprising and is consistent with seasonal patterns that have occurred in prior years. The modest year-over-year growth in local 1 percent hotel tax collections is somewhat concerning but likely reflects the slowing of the national and regional economy in December. Even though year-over-year growth was modest, the fiscal year to date-over-fiscal year to date growth remained robust at 11.7 percent and provides a solid foundation for the coming spring season,” Hull said.
The 1 percent hotel tax is collected on the rental of rooms in the state and remitted in full to the municipality in which the room rental was located, the DOR said.

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