Rhode Island Senate Bill S0872

Rhode Island 2025 Regular Session

• Introduced: 3/21/25
• Refer: 3/21/25

Caption

Redirects the distribution of hotel tax money to the Rhode Island commerce corporation.

Impact

If enacted, S0872 will significantly alter the existing financial framework that supports local tourism bodies within Rhode Island. By shifting the revenue streams to the Rhode Island commerce corporation, the bill aims to centralize tourism funding, allowing the state to utilize these funds for broader tourism development initiatives and statewide marketing strategies. This could potentially improve Rhode Island's visibility as a tourist destination, although it may also diminish local control over tourism funding at the municipality and regional level.

Summary

Bill S0872, presented in the Rhode Island General Assembly, proposes amendments to the distribution of hotel tax revenues as outlined in Chapter 42-63.1 concerning tourism and development. The legislation aims to reroute a portion of the hotel tax revenue away from the Greater Providence-Warwick Convention and Visitors Bureau and instead allocate it to the Rhode Island commerce corporation. Currently, this tax revenue structure includes distributed percentages to various tourism districts and local municipalities, but this bill primarily seeks to modify these allocations to enhance state-level tourism promotion efforts.

Contention

Opponents of the bill may argue that removing funds from local tourism entities could hinder their ability to effectively promote their regions and cater to local tourist needs. Many local stakeholders have raised concerns about the implications of diminished support for city-level tourism initiatives which often address unique local interests and needs. This tension highlights the ongoing debate between centralized state management of resources versus localized governance, particularly in sectors as vital as tourism, which is a key economic driver for many Rhode Island communities.