Providence, R.i -- The Rhode Island Department of Revenue today released its FY 2017 Local 1.0 Percent Hotel Tax Collections Report for September 2016. The Local 1.0 Percent Hotel Tax Collections Report, which is issued on a monthly basis, compares the collections from the state's local 1.0 percent hotel tax on a month-to-month, year-over-year, and fiscal year-to-date over fiscal year-to-date basis. The local 1.0 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.
Expansion of the Local 1.0 Percent Hotel Tax Base The September 2016 report includes the local 1.0 percent hotel tax collections generated by the rental of lodging via hosting platforms and by on-line travel companies (room resellers) and vacation home rentals by homeowners and realtors for all municipalities other than the City of Newport. The local 1.0 percent hotel tax collections from these rentals for all municipalities other than the City of Newport covers the period of July through September 2016 by month but not July through September 2015. For the City of Newport, local 1.0 percent hotel tax collections from these rentals covers only July through September 2015 by month and not July through September 2016.
It should be noted that due to timing and capacity constraints not all local 1.0 percent hotel tax returns filed in September for August 2016 were processed in the month. Certain August 2016 returns filed by room resellers and hosting platforms for the rental of single rooms and realtors and homeowners for the rental of entire housing units are reported in September 2016 along with September returns. As a result, the revenue from the rental of lodging in September 2016 is likely overstated.
Highlights from the report as noted by Director of Revenue Robert S. Hull were • Local 1.0 percent hotel tax collections were down 7.9 percent between September and August 2016, less than the 14.1 percent decline experienced in FY 2016 between September and August 2015, although this result is due in part to the processing delay experienced by Taxation; o September 2016 cash collections include $98,540 in receipts attributable to the local 1.0 percent hotel tax base expansion vs. $15,042 accounted for in August 2016; • Year-over-year increase in local 1.0 percent hotel tax collections for September 2016 was exceptional at 28.5 percent and 12.1 percentage points more than the year-over-year rate of growth posted in September 2015; o Year-over Year local 1.0 percent hotel tax collections in September 2016 incorporate $98,540 of receipts generated from the local 1.0 percent hotel tax base expansion vs. $2,510 recorded in September 2015. • FY 2017 year-to-date through September local 1.0 percent hotel tax collections were 17.9 percent greater than the same period in FY 2016, a gain of $278,782 and slightly ahead of the 14.6 percent growth experienced in FY 2016 year-to-date through September; o Year-to-date through September 2016 local 1.0 percent hotel tax collections include $225,955 from the expansion of the local 1.0 percent hotel tax base to room resellers and hosting platforms and realtors and homeowners. For the same period through September 2015, the comparable figure is $9,694.
The entire report can be found on the Department of Revenue's web site at http://www.dor.ri.gov/revenue-analysis/2017.php under the Local Reports tab. The full report includes the break down by municipality of local hotel tax collections on a month-to-month, year-over-year, and fiscal year-to-date over fiscal year-to-date basis.
Questions or comments on the report should be directed to Paul Grimaldi, Chief of Information and Public Relations by e-mail at email@example.com or by phone at (401) 574-8766.