Bill > H6350

This bill allows communities to increase their local hotel tax by an additional two percent (2%), expanding upon the existing local hotel tax structure in Rhode Island. Currently, there is a 5% state hotel tax and a 1% local hotel tax, and this legislation would permit municipalities to add up to 2% more to their local hotel tax rate. The local hotel tax is imposed on the total consideration charged for occupancy of hotel spaces and is collected alongside the state hotel tax. The additional tax would be administered and collected by the state's division of taxation, following the same administrative procedures as the existing local hotel tax. When collected, these tax receipts would be distributed quarterly to the specific city or town where the hotel is located. The bill specifically notes that this local tax increase is optional for communities, giving them flexibility in implementing the additional tax. The legislation would take effect immediately upon passage, providing local governments with a new potential revenue stream from hotel occupancy.

Budget and Finance

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