2023 -- H 5788

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LC001976

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

     Introduced By: Representatives McEntee, Fogarty, Caldwell, Vella-Wilkinson, and
Spears

     Date Introduced: February 22, 2023

     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 the 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 chapter 64 of this title.

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

hotel that 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 64 of this title, 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 the 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 that 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 64 of this

title.

     (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 that 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 64 of this title.

     (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 that 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 64 of this title.

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

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

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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 64 of this

title.

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

subsections (b)(1) through (b)(4) of this section, 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 that 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 64 of this title.

     (c) For returns and tax payments received before July 1, 2019, the proceeds 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: twenty-five percent

(25%) of the tax shall be given to the city or town where the residential unit that 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 this title.

     (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 the fiscal year.

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

received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-

12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential

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

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

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

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

42-63.1-12, the proceeds of the hotel tax, excluding the 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-five percent (45%) 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 that generated the tax is

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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-five percent (25%) of the

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

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

thirty percent (30%) 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 that generated the tax is physically

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

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

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

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

thirty percent (30%) 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 that generated the tax is physically

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

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

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

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

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that 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 64 of this

title.

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

subsections (b)(1) through (b)(4) of this section, forty-five percent (45%) 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 that 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-five (25%) of the tax shall

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

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

42-63.1-12, the proceeds of the hotel tax, including the 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 in the Aquidneck Island district, as defined in § 42-63.1-5, forty-

five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent

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(25%) of the tax shall be given to the city or town where the hotel or residential unit that 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-five percent

(25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

64 of this title.

     (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent

(30%) 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 or residential unit that generated the tax is physically

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

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

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

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

(30%) 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 or residential unit that generated the tax is physically

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

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

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

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

percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that

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 64 of this title.

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

(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional

tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-

five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit

that 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-five

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

chapter 64 of this title.

     (h) For returns and tax payments received on or after July 1, 2023, except as provided in §

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

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:

     (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, fifty

percent (50%) of the tax shall be given to the Aquidneck Island district, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel or residential unit that generated the tax

is physically located, and twenty-five percent (25%) of the tax shall be given to the Rhode Island

commerce corporation established in chapter 64 of this title.

     (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent

(30%) 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 or residential unit that generated the tax is physically

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

convention and visitors bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

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

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

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

to the city or town where the hotel or residential unit that generated the tax is physically located,

twenty-four percent (24%) of the tax shall be given to the greater Providence-Warwick convention

and visitors bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be

given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (4) For the tax generated in the statewide district, as defined in § 42-63.1-5, thirty percent

(30%) of the tax shall be given to the city or town where the hotel or residential unit that generated

the tax is physically located, and seventy percent (70%) of the tax shall be given to the Rhode Island

commerce corporation established in chapter 64 of this title.

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

(h)(1) through (h)(4) of this section, fifty percent (50%) of the tax shall be given to the regional

tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-

five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit

that generated the tax is physically located, and twenty-five percent (25%) of the tax shall be given

to the Rhode Island commerce corporation established in chapter 64 of this title.

     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

***

     This act would remove the requirement that five percent (5%) of the hotel tax be paid to

the Greater Providence-Warwick Convention and Visitors Bureau and redistribute the five percent

(5%) tax to the regional tourism district in which the hotel or residential unit is located.

     This act would take effect upon passage.

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