2019 -- S 0561

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LC001802

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

     

     Introduced By: Senators DiPalma, Felag, Seveney, and Euer

     Date Introduced: March 14, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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     42-63.1-3. Distribution of tax.

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     (a) For returns and tax payments received on or before December 31, 2015, except as

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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Island commerce corporation as established in chapter 64 of title 42.

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

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

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or town decides.

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

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

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Providence-Warwick Convention and Visitors' Bureau.

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

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

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

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

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

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

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

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

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

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

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established in chapter 64 of title 42.

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

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

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

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

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

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the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

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42.

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

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

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

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

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

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

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chapter 64 of title 42.

 

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     (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

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

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

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

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chapter 64 of title 42.

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

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subdivisions (b)(1) through (b)(4), forty-two percent (42%) of the tax shall be given to the

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regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five

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

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

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

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the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

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42.

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

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

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

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

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

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64 of title 42.

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

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

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

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chapter for such fiscal year.

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     (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

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received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-

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63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from

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

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in accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of

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this section by the division of taxation and the city of Newport.

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     (f) For returns and tax payments received on or after July 1, 2018, except as provided in §

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

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

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

 

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

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42-63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district,

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

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

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

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five percent (25%) of the tax shall be given to the Rhode Island commerce corporation

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established in chapter 64 of title 42.

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

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5, thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent

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

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physically located, twenty-four (24%) of the tax shall be given to the Greater Providence-

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Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of

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the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

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42.

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

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thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)

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

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located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

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Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax

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

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     (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

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

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

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

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chapter 64 of title 42.

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

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subdivisions (b)(1) through (b)(4), forty-five percent (45%) of the tax shall be given to the

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regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five

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

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

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Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of

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the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

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42.

 

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     (g) For returns and tax payments received on or after July 1, 2019, except as provided in

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§ 42-63.1-12, the proceeds of the hotel tax, including such portion of the hotel tax collected from

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

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

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

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42-63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district,

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

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

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

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five percent (25%) of the tax shall be given to the Rhode Island commerce corporation

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established in chapter 64 of title 42.

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

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5, thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent

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

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physically located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-

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

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(21%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

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64 of title 42.

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

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thirty percent (30%) of the tax shall be given to the Warwick district, twenty-five percent (25%)

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

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located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

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Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

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

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     (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

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

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

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

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chapter 64 of title 42.

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

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subdivisions (b)(1) through (b)(4) of this section, forty-five percent (45%) of the tax shall be

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given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located,

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

 

LC001802 - Page 5 of 7

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

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

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five percent (25%) of the tax shall be given to the Rhode Island commerce corporation

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established in chapter 64 of title 42.

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     SECTION 2. This act shall take effect upon passage.

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LC001802

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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 set forth the proportional distribution of revenue from tax payments

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received after July 1, 2019, from the hotel tax. Recipients of the revenue include the local district,

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the city, or town where the hotel is located, the local tourism bureau and the commerce

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corporation.

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     This act would take effect upon passage.

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