2018 -- S 2375 | |
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LC004127 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2018 | |
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A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND | |
DEVELOPMENT | |
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Introduced By: Senator Erin Lynch Prata | |
Date Introduced: February 15, 2018 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled |
2 | "Tourism and Development" is hereby amended to read as follows: |
3 | 42-63.1-3. Distribution of tax. |
4 | (a) For returns and tax payments received on or before December 31, 2015, except as |
5 | provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax |
6 | collected from residential units offered for tourist or transient use through a hosting platform, |
7 | shall be distributed as follows by the division of taxation and the city of Newport: |
8 | (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as |
9 | otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel |
10 | is located; provided, however, that from the tax generated by the hotels in the city of Warwick, |
11 | thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district |
12 | established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater |
13 | Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided |
14 | further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) |
15 | of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau |
16 | established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the |
17 | Convention Authority of the city of Providence established pursuant to the provisions of chapter |
18 | 84 of the public laws of January, 1980; provided, however, that the receipts attributable to the |
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1 | district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the |
2 | receipts attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode |
3 | Island commerce corporation as established in chapter 64 of title 42. |
4 | (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where |
5 | the hotel, which generated the tax, is physically located, to be used for whatever purpose the city |
6 | or town decides. |
7 | (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce |
8 | corporation established in chapter 64 of title 42, and seven percent (7%) to the Greater |
9 | Providence-Warwick Convention and Visitors' Bureau. |
10 | (b) For returns and tax payments received after December 31, 2015, except as provided in |
11 | § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from |
12 | residential units offered for tourist or transient use through a hosting platform, shall be distributed |
13 | as follows by the division of taxation and the city of Newport: |
14 | (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § |
15 | 42-63.1-5(a)(4), forty-two percent (42%) of the tax shall be given to the Aquidneck Island |
16 | district, twenty-five (25%) of the tax shall be given to the city or town where the hotel, which |
17 | generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater |
18 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty- |
19 | eight percent (28%) of the tax shall be given to the Rhode Island commerce corporation |
20 | established in chapter 64 of title 42. |
21 | (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1- |
22 | 5(a)(2), twenty eight percent (28%) of the tax shall be given to the Providence district, twenty- |
23 | five percent (25%) of the tax shall be given to the city or town where the hotel, which generated |
24 | the tax, is physically located, twenty-three (23%) of the tax shall be given to the Greater |
25 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty- |
26 | four (24%) of the tax shall be given to the Rhode Island commerce corporation established in |
27 | chapter 64 of title 42. |
28 | (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1- |
29 | 5(a)(5), twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five |
30 | percent (25%) of the tax shall be given to the city or town where the hotel, which generated the |
31 | tax, is physically located, twenty-three percent (23%) of the tax shall be given to the Greater |
32 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty- |
33 | four (24%) of the tax shall be given to the Rhode Island commerce corporation established in |
34 | chapter 64 of title 42. |
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1 | (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1- |
2 | 5(a)(8), twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, |
3 | which generated the tax, is physically located, five percent (5%) of the tax shall be given to the |
4 | Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and |
5 | seventy percent (70%) of the tax shall be given to the Rhode Island commerce corporation |
6 | established in chapter 64 of title 42. |
7 | (5) With respect to the tax generated by hotels in districts other than those set forth in |
8 | subdivisions (b)(1) through (b)(4), forty-two percent (42%) of the tax shall be given to the |
9 | regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five |
10 | percent (25%) of the tax shall be given to the city or town where the hotel, which generated the |
11 | tax, is physically located, five percent (5%) of the tax shall be given to the Greater Providence- |
12 | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of |
13 | the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title |
14 | 42. |
15 | (c) The proceeds of the hotel tax collected from residential units offered for tourist or |
16 | transient use through a hosting platform shall be distributed as follows by the division of taxation |
17 | and the city of Newport: twenty-five percent (25%) of the tax shall be given to the city or town |
18 | where the residential unit, which generated the tax, is physically located, and seventy-five percent |
19 | (75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter |
20 | 64 of title 42. |
21 | (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend |
22 | on the promotion and marketing of Rhode Island as a destination for tourists or businesses an |
23 | amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this |
24 | chapter for such fiscal year. |
25 | (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments |
26 | received on or after July 1, 2016 and on or before June 30, 2017, and on or after July 1, 2018, and |
27 | on or before June 30, 2019, except as provided in § 42-63.1-12, the proceeds of the hotel tax, |
28 | excluding such portion of the hotel tax collected from residential units offered for tourist or |
29 | transient use through a hosting platform, shall be distributed in accordance with the distribution |
30 | percentages established in § 42-63.1-3(a)(1) through § 42-63.1-3(a)(3) by the division of taxation |
31 | and the city of Newport. |
32 | 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 | |
*** | |
1 | This act would reinstate for one year, from July 1, 2018, to June 30, 2019, the formula |
2 | used to distribute hotel tax funds prior to January 1, 2016. |
3 | This act would take effect upon passage. |
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