Rhode Island 2023 Regular Session

Rhode Island House Bill H5788 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5788
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7	7	LC001976
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
16	16	DEVELOPMENT
17	17	Introduced By: Representatives McEntee, Fogarty, Caldwell, Vella-Wilkinson, and
18	18	Spears
19	19	Date Introduced: February 22, 2023
20	20	Referred To: House Finance
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism 1
25	25	and Development" is hereby amended to read as follows: 2
26	26	42-63.1-3. Distribution of tax. 3
27	27	(a) For returns and tax payments received on or before December 31, 2015, except as 4
28	28	provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax 5
29	29	collected from residential units offered for tourist or transient use through a hosting platform, shall 6
30	30	be distributed as follows by the division of taxation and the city of Newport: 7
31	31	(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as 8
32	32	otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel 9
33	33	is located; provided, however, that from the tax generated by the hotels in the city of Warwick, 10
34	34	thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district 11
35	35	established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater 12
36	36	Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided 13
37	37	further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) 14
38	38	of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau 15
39	39	established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the 16
40	40	Convention Authority of the city of Providence established pursuant to the provisions of chapter 17
41	41	84 of the public laws of January, 1980; provided, however, that the receipts attributable to the 18
42	42
43	43
44	44	LC001976 - Page 2 of 7
45	45	district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts 1
46	46	attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island 2
47	47	commerce corporation as established in chapter 64 of this title. 3
48	48	(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the 4
49	49	hotel that generated the tax is physically located, to be used for whatever purpose the city or town 5
50	50	decides. 6
51	51	(3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce 7
52	52	corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence-8
53	53	Warwick Convention and Visitors’ Bureau. 9
54	54	(b) For returns and tax payments received after December 31, 2015, except as provided in 10
55	55	§ 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from 11
56	56	residential units offered for tourist or transient use through a hosting platform, shall be distributed 12
57	57	as follows by the division of taxation and the city of Newport: 13
58	58	(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-14
59	59	63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-15
60	60	five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 16
61	61	physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 17
62	62	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of 18
63	63	the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this 19
64	64	title. 20
65	65	(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 21
66	66	twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent 22
67	67	(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically 23
68	68	located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick 24
69	69	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall 25
70	70	be given to the Rhode Island commerce corporation established in chapter 64 of this title. 26
71	71	(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, 27
72	72	twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent 28
73	73	(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically 29
74	74	located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick 30
75	75	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall 31
76	76	be given to the Rhode Island commerce corporation established in chapter 64 of this title. 32
77	77	(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, 33
78	78	twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated 34
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81	81	LC001976 - Page 3 of 7
82	82	the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-1
83	83	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 2
84	84	of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this 3
85	85	title. 4
86	86	(5) With respect to the tax generated by hotels in districts other than those set forth in 5
87	87	subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given 6
88	88	to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 7
89	89	percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 8
90	90	physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 9
91	91	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax 10
92	92	shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 11
93	93	(c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax 12
94	94	collected from residential units offered for tourist or transient use through a hosting platform shall 13
95	95	be distributed as follows by the division of taxation and the city of Newport: twenty-five percent 14
96	96	(25%) of the tax shall be given to the city or town where the residential unit that generated the tax 15
97	97	is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island 16
98	98	commerce corporation established in chapter 64 of this title. 17
99	99	(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend 18
100	100	on the promotion and marketing of Rhode Island as a destination for tourists or businesses an 19
101	101	amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this 20
102	102	chapter for the fiscal year. 21
103	103	(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments 22
104	104	received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-23
105	105	12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential 24
106	106	units offered for tourist or transient use through a hosting platform, shall be distributed in 25
107	107	accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this 26
108	108	section by the division of taxation and the city of Newport. 27
109	109	(f) For returns and tax payments received on or after July 1, 2018, except as provided in § 28
110	110	42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from 29
111	111	residential units offered for tourist or transient use through a hosting platform, shall be distributed 30
112	112	as follows by the division of taxation and the city of Newport: 31
113	113	(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-32
114	114	63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-33
115	115	five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 34
116	116
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119	119	physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 1
120	120	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the 2
121	121	tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 3
122	122	(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 4
123	123	thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) 5
124	124	of the tax shall be given to the city or town where the hotel that generated the tax is physically 6
125	125	located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick 7
126	126	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall 8
127	127	be given to the Rhode Island commerce corporation established in chapter 64 of this title. 9
128	128	(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, 10
129	129	thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) 11
130	130	of the tax shall be given to the city or town where the hotel that generated the tax is physically 12
131	131	located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 13
132	132	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall 14
133	133	be given to the Rhode Island commerce corporation established in chapter 64 of this title. 15
134	134	(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, 16
135	135	twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated 17
136	136	the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-18
137	137	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 19
138	138	of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this 20
139	139	title. 21
140	140	(5) With respect to the tax generated by hotels in districts other than those set forth in 22
141	141	subsections (b)(1) through (b)(4) of this section, forty-five percent (45%) of the tax shall be given 23
142	142	to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 24
143	143	percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 25
144	144	physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 26
145	145	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of the tax shall 27
146	146	be given to the Rhode Island commerce corporation established in chapter 64 of this title. 28
147	147	(g) For returns and tax payments received on or after July 1, 2019, except as provided in § 29
148	148	42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from 30
149	149	residential units offered for tourist or transient use through a hosting platform, shall be distributed 31
150	150	as follows by the division of taxation and the city of Newport: 32
151	151	(1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-33
152	152	five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent 34
153	153
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155	155	LC001976 - Page 5 of 7
156	156	(25%) of the tax shall be given to the city or town where the hotel or residential unit that generated 1
157	157	the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-2
158	158	Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent 3
159	159	(25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter 4
160	160	64 of this title. 5
161	161	(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent 6
162	162	(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall 7
163	163	be given to the city or town where the hotel or residential unit that generated the tax is physically 8
164	164	located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 9
165	165	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 10
166	166	tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 11
167	167	(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent 12
168	168	(30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall 13
169	169	be given to the city or town where the hotel or residential unit that generated the tax is physically 14
170	170	located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 15
171	171	Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 16
172	172	tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 17
173	173	(4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five 18
174	174	percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that 19
175	175	generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 20
176	176	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy 21
177	177	percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in 22
178	178	chapter 64 of this title. 23
179	179	(5) With respect to the tax generated in districts other than those set forth in subsections 24
180	180	(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional 25
181	181	tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-26
182	182	five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit 27
183	183	that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 28
184	184	Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five 29
185	185	percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in 30
186	186	chapter 64 of this title. 31
187	187	(h) For returns and tax payments received on or after July 1, 2023, except as provided in § 32
188	188	42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from 33
189	189	residential units offered for tourist or transient use through a hosting platform, shall be distributed 34
190	190
191	191
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193	193	as follows by the division of taxation and the city of Newport: 1
194	194	(1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, fifty 2
195	195	percent (50%) of the tax shall be given to the Aquidneck Island district, twenty-five percent (25%) 3
196	196	of the tax shall be given to the city or town where the hotel or residential unit that generated the tax 4
197	197	is physically located, and twenty-five percent (25%) of the tax shall be given to the Rhode Island 5
198	198	commerce corporation established in chapter 64 of this title. 6
199	199	(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent 7
200	200	(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall 8
201	201	be given to the city or town where the hotel or residential unit that generated the tax is physically 9
202	202	located, twenty-four percent (24%) of the tax shall be given to the greater Providence-Warwick 10
203	203	convention and visitors bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 11
204	204	tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 12
205	205	(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent 13
206	206	(30%) of the tax shall be given to the Warwick district, twenty five (25%) of the tax shall be given 14
207	207	to the city or town where the hotel or residential unit that generated the tax is physically located, 15
208	208	twenty-four percent (24%) of the tax shall be given to the greater Providence-Warwick convention 16
209	209	and visitors bureau established in § 42-63.1-11, and twenty-one percent (21%) of the tax shall be 17
210	210	given to the Rhode Island commerce corporation established in chapter 64 of this title. 18
211	211	(4) For the tax generated in the statewide district, as defined in § 42-63.1-5, thirty percent 19
212	212	(30%) of the tax shall be given to the city or town where the hotel or residential unit that generated 20
213	213	the tax is physically located, and seventy percent (70%) of the tax shall be given to the Rhode Island 21
214	214	commerce corporation established in chapter 64 of this title. 22
215	215	(5) With respect to the tax generated in districts other than those set forth in subsections 23
216	216	(h)(1) through (h)(4) of this section, fifty percent (50%) of the tax shall be given to the regional 24
217	217	tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-25
218	218	five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit 26
219	219	that generated the tax is physically located, and twenty-five percent (25%) of the tax shall be given 27
220	220	to the Rhode Island commerce corporation established in chapter 64 of this title. 28
221	221	SECTION 2. This act shall take effect upon passage. 29
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223	223	LC001976
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228	228	EXPLANATION
229	229	BY THE LEGISLATIVE COUNCIL
230	230	OF
231	231	A N A C T
232	232	RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
233	233	DEVELOPMENT
234	234	***
235	235	This act would remove the requirement that five percent (5%) of the hotel tax be paid to 1
236	236	the Greater Providence-Warwick Convention and Visitors Bureau and redistribute the five percent 2
237	237	(5%) tax to the regional tourism district in which the hotel or residential unit is located. 3
238	238	This act would take effect upon passage. 4
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240	240	LC001976
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