2023 -- H 5788
========
LC001976
========
S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
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 1
and Development" is hereby amended to read as follows: 2
42-63.1-3. Distribution of tax. 3
(a) For returns and tax payments received on or before December 31, 2015, except as 4
provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax 5
collected from residential units offered for tourist or transient use through a hosting platform, shall 6
be distributed as follows by the division of taxation and the city of Newport: 7
(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as 8
otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel 9
is located; provided, however, that from the tax generated by the hotels in the city of Warwick, 10
thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district 11
established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater 12
Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided 13
further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) 14
of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau 15
established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the 16
Convention Authority of the city of Providence established pursuant to the provisions of chapter 17
84 of the public laws of January, 1980; provided, however, that the receipts attributable to the 18
LC001976 - Page 2 of 7
district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts 1
attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island 2
commerce corporation as established in chapter 64 of this title. 3
(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the 4
hotel that generated the tax is physically located, to be used for whatever purpose the city or town 5
decides. 6
(3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce 7
corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence-8
Warwick Convention and Visitors’ Bureau. 9
(b) For returns and tax payments received after December 31, 2015, except as provided in 10
§ 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from 11
residential units offered for tourist or transient use through a hosting platform, shall be distributed 12
as follows by the division of taxation and the city of Newport: 13
(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-14
63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-15
five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 16
physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 17
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of 18
the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this 19
title. 20
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 21
twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent 22
(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically 23
located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick 24
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall 25
be given to the Rhode Island commerce corporation established in chapter 64 of this title. 26
(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, 27
twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent 28
(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically 29
located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick 30
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall 31
be given to the Rhode Island commerce corporation established in chapter 64 of this title. 32
(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, 33
twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated 34
LC001976 - Page 3 of 7
the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-1
Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 2
of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this 3
title. 4
(5) With respect to the tax generated by hotels in districts other than those set forth in 5
subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given 6
to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 7
percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 8
physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 9
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax 10
shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 11
(c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax 12
collected from residential units offered for tourist or transient use through a hosting platform shall 13
be distributed as follows by the division of taxation and the city of Newport: twenty-five percent 14
(25%) of the tax shall be given to the city or town where the residential unit that generated the tax 15
is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island 16
commerce corporation established in chapter 64 of this title. 17
(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend 18
on the promotion and marketing of Rhode Island as a destination for tourists or businesses an 19
amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this 20
chapter for the fiscal year. 21
(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments 22
received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-23
12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential 24
units offered for tourist or transient use through a hosting platform, shall be distributed in 25
accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this 26
section by the division of taxation and the city of Newport. 27
(f) For returns and tax payments received on or after July 1, 2018, except as provided in § 28
42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from 29
residential units offered for tourist or transient use through a hosting platform, shall be distributed 30
as follows by the division of taxation and the city of Newport: 31
(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-32
63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-33
five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 34
LC001976 - Page 4 of 7
physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 1
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the 2
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 3
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 4
thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) 5
of the tax shall be given to the city or town where the hotel that generated the tax is physically 6
located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick 7
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall 8
be given to the Rhode Island commerce corporation established in chapter 64 of this title. 9
(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, 10
thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) 11
of the tax shall be given to the city or town where the hotel that generated the tax is physically 12
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 13
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall 14
be given to the Rhode Island commerce corporation established in chapter 64 of this title. 15
(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, 16
twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated 17
the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-18
Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 19
of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this 20
title. 21
(5) With respect to the tax generated by hotels in districts other than those set forth in 22
subsections (b)(1) through (b)(4) of this section, forty-five percent (45%) of the tax shall be given 23
to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 24
percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 25
physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 26
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of the tax shall 27
be given to the Rhode Island commerce corporation established in chapter 64 of this title. 28
(g) For returns and tax payments received on or after July 1, 2019, except as provided in § 29
42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from 30
residential units offered for tourist or transient use through a hosting platform, shall be distributed 31
as follows by the division of taxation and the city of Newport: 32
(1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-33
five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent 34
LC001976 - Page 5 of 7
(25%) of the tax shall be given to the city or town where the hotel or residential unit that generated 1
the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-2
Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent 3
(25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 4
64 of this title. 5
(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent 6
(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall 7
be given to the city or town where the hotel or residential unit that generated the tax is physically 8
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 9
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 10
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 11
(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent 12
(30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall 13
be given to the city or town where the hotel or residential unit that generated the tax is physically 14
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 15
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 16
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 17
(4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five 18
percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that 19
generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 20
Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy 21
percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in 22
chapter 64 of this title. 23
(5) With respect to the tax generated in districts other than those set forth in subsections 24
(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional 25
tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-26
five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit 27
that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 28
Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five 29
percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in 30
chapter 64 of this title. 31
(h) For returns and tax payments received on or after July 1, 2023, except as provided in § 32
42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from 33
residential units offered for tourist or transient use through a hosting platform, shall be distributed 34
LC001976 - Page 6 of 7
as follows by the division of taxation and the city of Newport: 1
(1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, fifty 2
percent (50%) of the tax shall be given to the Aquidneck Island district, twenty-five percent (25%) 3
of the tax shall be given to the city or town where the hotel or residential unit that generated the tax 4
is physically located, and twenty-five percent (25%) of the tax shall be given to the Rhode Island 5
commerce corporation established in chapter 64 of this title. 6
(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent 7
(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall 8
be given to the city or town where the hotel or residential unit that generated the tax is physically 9
located, twenty-four percent (24%) of the tax shall be given to the greater Providence-Warwick 10
convention and visitors bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 11
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 12
(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent 13
(30%) of the tax shall be given to the Warwick district, twenty five (25%) of the tax shall be given 14
to the city or town where the hotel or residential unit that generated the tax is physically located, 15
twenty-four percent (24%) of the tax shall be given to the greater Providence-Warwick convention 16
and visitors bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be 17
given to the Rhode Island commerce corporation established in chapter 64 of this title. 18
(4) For the tax generated in the statewide district, as defined in § 42-63.1-5, thirty percent 19
(30%) of the tax shall be given to the city or town where the hotel or residential unit that generated 20
the tax is physically located, and seventy percent (70%) of the tax shall be given to the Rhode Island 21
commerce corporation established in chapter 64 of this title. 22
(5) With respect to the tax generated in districts other than those set forth in subsections 23
(h)(1) through (h)(4) of this section, fifty percent (50%) of the tax shall be given to the regional 24
tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-25
five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit 26
that generated the tax is physically located, and twenty-five percent (25%) of the tax shall be given 27
to the Rhode Island commerce corporation established in chapter 64 of this title. 28
SECTION 2. This act shall take effect upon passage. 29
========
LC001976
========
LC001976 - Page 7 of 7
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 1
the Greater Providence-Warwick Convention and Visitors Bureau and redistribute the five percent 2
(5%) tax to the regional tourism district in which the hotel or residential unit is located. 3
This act would take effect upon passage. 4
========
LC001976
========