2025 -- H 6001
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LC001845
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
____________
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
DEVELOPMENT
Introduced By: Representatives McEntee, Fogarty, Spears, Tanzi, Cotter, Azzinaro, and
Kennedy
Date Introduced: February 28, 2025
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
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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 percent (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 percent (25%) of the tax shall be given to the city or town where the hotel that generated the 16
tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-17
Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent 18
(28%) thirty-three percent (33%) of the tax shall be given to the Rhode Island commerce 19
corporation established in chapter 64 of this 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 percent (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 percent (24%) of the 25
tax shall 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 percent (24%) of the 31
tax shall 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
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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
seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation 3
established in chapter 64 of this 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 percent (28%) thirty-10
three percent (33%) of the tax shall be given to the Rhode Island commerce corporation established 11
in chapter 64 of this title. 12
(c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax 13
collected from residential units offered for tourist or transient use through a hosting platform shall 14
be distributed as follows by the division of taxation and the city of Newport: twenty-five percent 15
(25%) of the tax shall be given to the city or town where the residential unit that generated the tax 16
is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island 17
commerce corporation established in chapter 64 of this title. 18
(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend 19
on the promotion and marketing of Rhode Island as a destination for tourists or businesses an 20
amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this 21
chapter for the fiscal year. 22
(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments 23
received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-24
12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential 25
units offered for tourist or transient use through a hosting platform, shall be distributed in 26
accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this 27
section by the division of taxation and the city of Newport. 28
(f) For returns and tax payments received on or after July 1, 2018, except as provided in § 29
42-63.1-12, the proceeds of the hotel tax, excluding 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 by the hotels in the Aquidneck Island district, as defined in § 42-33
63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-34
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five percent (25%) of the tax shall be given to the city or town where the hotel that generated the 1
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%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation 4
established in chapter 64 of this title. 5
(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 6
thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) 7
of the tax shall be given to the city or town where the hotel 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 by the hotels in the Warwick district as defined in § 42-63.1-5, 12
thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) 13
of the tax shall be given to the city or town where the hotel 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 by the hotels in the Statewide district, as defined in § 42-63.1-5, 18
twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated 19
the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-20
Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 21
seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation 22
established in chapter 64 of this title. 23
(5) With respect to the tax generated by hotels in districts other than those set forth in 24
subsections (f)(1) through (f)(4) of this section, forty-five percent (45%) of the tax shall be given 25
to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 26
percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 27
physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 28
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) thirty 29
percent (30%) of the tax shall be given to the Rhode Island commerce corporation established in 30
chapter 64 of this title. 31
(g) For returns and tax payments received on or after July 1, 2019, 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
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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, forty-2
five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent 3
(25%) of the tax shall be given to the city or town where the hotel or residential unit that generated 4
the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-5
Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent 6
(25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation 7
established in chapter 64 of this title. 8
(2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent 9
(30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall 10
be given to the city or town where the hotel or residential unit that generated the tax is physically 11
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 12
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 13
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 14
(3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent 15
(30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall 16
be given to the city or town where the hotel or residential unit that generated the tax is physically 17
located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 18
Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 19
tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 20
(4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five 21
percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that 22
generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 23
Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy 24
percent (70%) seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce 25
corporation established in chapter 64 of this title. 26
(5) With respect to the tax generated in districts other than those set forth in subsections 27
(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional 28
tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-29
five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit 30
that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 31
Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five 32
percent (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce 33
corporation established in chapter 64 of this title. 34
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(6) For returns and tax payments received on or after July 1, 2025, except as provided in § 1
42-63.1-12(d), five percent (5%) of the taxes generated in the Aquidneck Island district statewide 2
tourism district (New Shoreham, South County, Blackstone Valley) shall be given to the Rhode 3
Island commerce corporation for tourism development, public art and events throughout the 4
participating regions. 5
SECTION 2. This act shall take effect upon passage. 6
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND
DEVELOPMENT
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This act would remove the requirement that five percent (5%) of the hotel tax generated 1
from the South County tourism district be paid to the Greater Providence-Warwick Convention and 2
Visitors Bureau, and would add that five percent (5%) of the hotel tax to the existing tax paid to 3
the Rhode Island commerce corporation. 4
This act would take effect upon passage. 5
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