Bill > S1046

This bill allows local communities in Rhode Island to increase their local hotel tax by an additional two percent (2%), expanding upon the existing one percent (1%) local hotel tax. Currently, hotels in the state are subject to a 5% state hotel tax, and localities can already impose a 1% local hotel tax. The bill would permit municipalities to levy an extra 2% local tax on top of the existing hotel tax, giving communities more flexibility to generate local revenue from hotel occupancy. The new local tax would be administered and collected in the same manner as the current local hotel tax, with funds distributed quarterly to the city or town where the hotel is located. This legislation applies to all hotels in the state, with a specific provision noting that Newport has unique collection authority for its local hotel taxes. The bill would take effect immediately upon passage, providing local governments with a new tool to generate additional revenue from tourism-related activities.

Budget and Finance

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