Hospitality, food spending increase year-over-year, year-to-date in R.I.

THE R.I. DEPARTMENT OF REVENUE released its fiscal 2015 Local 1 percent meal and beverage tax collections report, as well as its Local 1 percent hotel tax collections report, showing collections were up year-over-year, and fiscal year-to-date in both segments, but down month-to-month. / COURTESY R.I. DEPARTMENT OF REVENUE
THE R.I. DEPARTMENT OF REVENUE released its fiscal 2015 Local 1 percent meal and beverage tax collections report, as well as its Local 1 percent hotel tax collections report, showing collections were up year-over-year, and fiscal year-to-date in both segments, but down month-to-month. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Hotel tax collections, and meal and beverage tax collections increased on a year-over-year and fiscal year-to-date basis, according to the state Department of Revenue.

However, the month-to-month numbers were not as strong, as each segment posted declines from August to September.

The state department, in its fiscal 2015 Local 1 percent hotel tax collections report for September, showed a 5.9 percent increase fiscal year-to-date compared with the same period last year, to $1,355,698 from $1,280,205. Year-over-year for September, the increase was 5.7 percent to $404,825.
Hotel collections fell 22.5 percent from August to September, going from $522,581 to $404,825.

“The decline in local hotel tax collections between September and August are consistent with the seasonal nature of the state’s tourism industry. The year-over-year growth remains solid although down from the year-over-year growth rate posted in September of 2013,” Director of Revenue Rosemary Booth Gallogly said.

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On the meal and beverage side, the local 1 percent tax collections report showed an increase of 8.1 percent fiscal year-to-date compared with the same period last year, to $6,946,329 from $6,428,675. Year-over-year for the month, the increase was 9.5 percent to $2,074,006.
Month-to-month, meal and beverage tax collections dropped 14.6 percent, from $2,429,216 in August to $2,074,006 in September.

Gallogly said the decline was expected in September. She said year-over-year growth in this tax revenue cannot be “reliably assessed given the problems with posting these revenues in September of 2013.”
“Similarly, it is difficult to measure the improvement or lack thereof in local 1 percent meal and beverage tax revenues on a fiscal year-to-date basis through September 2014 due to the posting problems associated with these tax collections last fiscal year,” Gallogly said.

The local 1 percent taxes are remitted to the municipality in which the meal and/or beverage was consumed, or in which the hotel room was located.

View the reports HERE.

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