Hotel, meal, beverage tax collections rise in Jan., FY to date

IN JANUARY, local 1 percent hotel tax collections increased 3.4 percent on a year-over-year basis, and local 1 percent meal and beverage tax collections rose 3.6 percent, according to the state Department of Revenue. / COURTESY R.I. DEPARTMENT OF REVENUE
IN JANUARY, local 1 percent hotel tax collections increased 3.4 percent on a year-over-year basis, and local 1 percent meal and beverage tax collections rose 3.6 percent, according to the state Department of Revenue. / COURTESY R.I. DEPARTMENT OF REVENUE

(Updated 4:25 p.m.) PROVIDENCE – In January, local 1 percent hotel tax collections increased 3.4 percent year over year, and local 1 percent meal and beverage tax collections rose 3.6 percent, according to the state Department of Revenue.

The state department released its January reports Tuesday, showing that the 1 percent hotel tax collections increased 3.4 percent to $142,890, compared with $138,139 a year ago.

Comparing the first seven months of the fiscal year to the prior fiscal year period, revenue grew nearly 8 percent to $2.2 million from $2.1 million.

The local 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.

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Martha Sheridan, president and CEO of the Providence Warwick Convention & Visitors Bureau, said that there were more convention groups and sports groups in January compared with January 2014 – eight compared with seven. She said a greater number of group rooms also was anticipated in January, 9,000, compared with 7,500 in January 2014.
“The weather did curtail attendance at a couple of meetings so I would say that the 9,000 did not actualize fully, but I think the convention groups overall helped insulate us from lower occupancy rates,” Sheridan wrote in an email.

Director of Revenue Rosemary Booth Gallogly said that fiscal 2015 hotel tax collections are continuing to grow at a “brisk pace especially on a year-to-date over year–to-date basis.”

The local 1 percent meal and beverage tax collections increased 3.6 percent to $1.6 million in January from $1.5 million during the prior-year period. Fiscal year to date, collections grew 7.3 percent to $14 million compared with $13.1 million during the prior fiscal period.

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