Imposes an additional local hotel tax in the city of Newport, at a rate of two and one-half percent (2.5%) to be retained and used for its public infrastructure and resiliency purposes.
The passage of Bill S3033 could have significant implications for local tax structure in Newport, allowing the city to generate additional revenue through the hotel sector specifically. The funds collected through this additional tax will be distributed directly to the city, which could lead to improvements in public infrastructure such as roads, bridges, and flood defenses. Proponents argue that this will enhance the city’s overall capability to maintain a resilient infrastructure, especially in light of increasing weather events due to climate change.
Bill S3033 proposes the imposition of an additional local hotel tax in the city of Newport, set at a rate of two and one-half percent (2.5%). This tax is on top of the existing sales and use tax and is intended to provide revenue specifically earmarked for public infrastructure and resiliency projects within the city. The expectation is that this additional funding will help Newport address various infrastructural needs and enhance its ability to respond to environmental challenges and other public service demands.
While the bill is aimed at improving local funding for public needs, it may face opposition from various stakeholders, including hotel owners and business advocates who might perceive the new tax as an undue burden. Concerns might arise regarding the potential impact of increased costs on tourism and local businesses, with critics arguing that it could drive visitors away and consequently hurt the local economy. Ultimately, the discussions surrounding S3033 will likely delve into balancing the need for increased local revenue against the economic realities faced by businesses in Newport.