2016 -- H 8242

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - TOURISM AND

DEVELOPMENT

     Introduced By: Representatives Carson, Fogarty, Carnevale, Azzinaro, and Marshall

     Date Introduced: May 20, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled

"Tourism and Development" is hereby amended to read as follows:

     42-63.1-3. Distribution of tax. -- (a) For returns and tax payments received on or before

December 31, 2015, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding

such portion of the hotel tax collected from residential units offered for tourist or transient use

through a hosting platform, shall be distributed as follows by the division of taxation and the city

of Newport:

      (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided

further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau

established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

Convention Authority of the city of Providence established pursuant to the provisions of chapter

84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the

receipts attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode

Island commerce corporation as established in Rhode Island General Law Chapter 42-64;

      (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where

the hotel, which generated the tax, is physically located, to be used for whatever purpose the city

or town decides.

      (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

corporation established in chapter 42-64, and seven percent (7%) to the Greater Providence-

Warwick Convention and Visitors' Bureau.

      (b) For returns and tax payments received after December 31, 2015, except as provided

in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected

from residential units offered for tourist or transient use through a hosting platform, shall be

distributed as follows by the division of taxation and the city of Newport:

      (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in §

42-63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district,

twenty-five (25%) of the tax shall be given to the city or town where the hotel, which generated

the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

eight percent (28%) of the tax shall be given to the Rhode Island commerce corporation

established in chapter 42-64.

      (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-

5, twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five

percent (25%) of the tax shall be given to the city or town where the hotel, which generated the

tax, is physically located, twenty-three (23%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of

the tax shall be given to the Rhode Island commerce corporation established in chapter 42-64.

     (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

physically located, twenty-three percent (23%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

four (24%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 42-64.

     (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

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twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 42-64.

     (5) With respect to the tax generated by hotels in districts other than those set forth in

sections (1) through (4) above, forty-two percent (42%) of the tax shall be given to the regional

tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax

shall be given to the Rhode Island commerce corporation established in chapter 42-64.

     (c) The proceeds of the hotel tax collected from residential units offered for tourist or

transient use through a hosting platform shall distributed as follows by the division of taxation

and the city of Newport: twenty-five percent (25%) of the tax shall be given to the city or town

where the residential unit, which generated the tax, is physically located, and seventy-five percent

(75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

64 of title 42.

     (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend

on the promotion and marketing of Rhode Island as a destination for tourists or businesses an

amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

chapter for such fiscal year.

     (e) Notwithstanding the foregoing provisions of this section, for fiscal year 2017 only,

any distributions made pursuant to this section to the respective regional tourism districts

established pursuant to §42-63.1-5 shall be in amounts not less than the amounts distributed to the

districts in fiscal year 2015. In furtherance thereof, any sums required to be distributed to the

districts to meet the fiscal year 2015 levels (which are in addition to the amounts already

attributable to the districts) shall be disbursed from the distributions attributable to the Rhode

Island commerce corporation.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - TOURISM AND

DEVELOPMENT

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     This act would provide that for the fiscal year 2017 only, the distribution of hotel tax

made to the various regional tourism districts be in amounts equal to the distributions made to

such districts in fiscal year 2015.

     This act would take effect upon passage.

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