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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- H 6001 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001845 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND |
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| 16 | 16 | | DEVELOPMENT |
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| 17 | 17 | | Introduced By: Representatives McEntee, Fogarty, Spears, Tanzi, Cotter, Azzinaro, and |
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| 18 | 18 | | Kennedy |
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| 19 | 19 | | Date Introduced: February 28, 2025 |
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| 20 | 20 | | Referred To: House Finance |
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| 21 | 21 | | |
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| 22 | 22 | | |
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| 23 | 23 | | It is enacted by the General Assembly as follows: |
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| 24 | 24 | | SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled "Tourism 1 |
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| 25 | 25 | | and Development" is hereby amended to read as follows: 2 |
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| 26 | 26 | | 42-63.1-3. Distribution of tax. 3 |
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| 27 | 27 | | (a) For returns and tax payments received on or before December 31, 2015, except as 4 |
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| 28 | 28 | | provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax 5 |
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| 29 | 29 | | collected from residential units offered for tourist or transient use through a hosting platform, shall 6 |
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| 30 | 30 | | be distributed as follows by the division of taxation and the city of Newport: 7 |
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| 31 | 31 | | (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as 8 |
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| 32 | 32 | | otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel 9 |
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| 33 | 33 | | is located; provided, however, that from the tax generated by the hotels in the city of Warwick, 10 |
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| 34 | 34 | | thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district 11 |
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| 35 | 35 | | established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater 12 |
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| 36 | 36 | | Providence-Warwick Convention and Visitors’ Bureau established in § 42-63.1-11; and provided 13 |
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| 37 | 37 | | further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) 14 |
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| 38 | 38 | | of that tax shall be given to the Greater Providence-Warwick Convention and Visitors’ Bureau 15 |
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| 39 | 39 | | established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the 16 |
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| 40 | 40 | | Convention Authority of the city of Providence established pursuant to the provisions of chapter 17 |
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| 41 | 41 | | 84 of the public laws of January, 1980; provided, however, that the receipts attributable to the 18 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC001845 - Page 2 of 7 |
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| 45 | 45 | | district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts 1 |
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| 46 | 46 | | attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island 2 |
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| 47 | 47 | | commerce corporation as established in chapter 64 of this title. 3 |
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| 48 | 48 | | (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the 4 |
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| 49 | 49 | | hotel that generated the tax is physically located, to be used for whatever purpose the city or town 5 |
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| 50 | 50 | | decides. 6 |
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| 51 | 51 | | (3) Twenty-one percent (21%) of the hotel tax shall be given to the Rhode Island commerce 7 |
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| 52 | 52 | | corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence-8 |
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| 53 | 53 | | Warwick Convention and Visitors’ Bureau. 9 |
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| 54 | 54 | | (b) For returns and tax payments received after December 31, 2015, except as provided in 10 |
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| 55 | 55 | | § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from 11 |
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| 56 | 56 | | residential units offered for tourist or transient use through a hosting platform, shall be distributed 12 |
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| 57 | 57 | | as follows by the division of taxation and the city of Newport: 13 |
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| 58 | 58 | | (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-14 |
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| 59 | 59 | | 63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-15 |
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| 60 | 60 | | five percent (25%) of the tax shall be given to the city or town where the hotel that generated the 16 |
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| 61 | 61 | | tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-17 |
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| 62 | 62 | | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent 18 |
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| 63 | 63 | | (28%) thirty-three percent (33%) of the tax shall be given to the Rhode Island commerce 19 |
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| 64 | 64 | | corporation established in chapter 64 of this title. 20 |
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| 65 | 65 | | (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 21 |
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| 66 | 66 | | twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent 22 |
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| 67 | 67 | | (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically 23 |
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| 68 | 68 | | located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick 24 |
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| 69 | 69 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four percent (24%) of the 25 |
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| 70 | 70 | | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 26 |
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| 71 | 71 | | (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, 27 |
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| 72 | 72 | | twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent 28 |
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| 73 | 73 | | (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically 29 |
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| 74 | 74 | | located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick 30 |
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| 75 | 75 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four percent (24%) of the 31 |
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| 76 | 76 | | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 32 |
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| 77 | 77 | | (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, 33 |
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| 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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| 79 | 79 | | |
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| 80 | 80 | | |
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| 81 | 81 | | LC001845 - Page 3 of 7 |
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| 82 | 82 | | the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-1 |
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| 83 | 83 | | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 2 |
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| 84 | 84 | | seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation 3 |
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| 85 | 85 | | established in chapter 64 of this title. 4 |
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| 86 | 86 | | (5) With respect to the tax generated by hotels in districts other than those set forth in 5 |
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| 87 | 87 | | subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given 6 |
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| 88 | 88 | | to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 7 |
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| 89 | 89 | | percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 8 |
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| 90 | 90 | | physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 9 |
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| 91 | 91 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) thirty-10 |
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| 92 | 92 | | three percent (33%) of the tax shall be given to the Rhode Island commerce corporation established 11 |
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| 93 | 93 | | in chapter 64 of this title. 12 |
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| 94 | 94 | | (c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax 13 |
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| 95 | 95 | | collected from residential units offered for tourist or transient use through a hosting platform shall 14 |
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| 96 | 96 | | be distributed as follows by the division of taxation and the city of Newport: twenty-five percent 15 |
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| 97 | 97 | | (25%) of the tax shall be given to the city or town where the residential unit that generated the tax 16 |
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| 98 | 98 | | is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island 17 |
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| 99 | 99 | | commerce corporation established in chapter 64 of this title. 18 |
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| 100 | 100 | | (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend 19 |
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| 101 | 101 | | on the promotion and marketing of Rhode Island as a destination for tourists or businesses an 20 |
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| 102 | 102 | | amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this 21 |
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| 103 | 103 | | chapter for the fiscal year. 22 |
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| 104 | 104 | | (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments 23 |
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| 105 | 105 | | received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-24 |
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| 106 | 106 | | 12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential 25 |
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| 107 | 107 | | units offered for tourist or transient use through a hosting platform, shall be distributed in 26 |
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| 108 | 108 | | accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this 27 |
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| 109 | 109 | | section by the division of taxation and the city of Newport. 28 |
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| 110 | 110 | | (f) For returns and tax payments received on or after July 1, 2018, except as provided in § 29 |
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| 111 | 111 | | 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from 30 |
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| 112 | 112 | | residential units offered for tourist or transient use through a hosting platform, shall be distributed 31 |
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| 113 | 113 | | as follows by the division of taxation and the city of Newport: 32 |
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| 114 | 114 | | (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-33 |
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| 115 | 115 | | 63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-34 |
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| 116 | 116 | | |
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| 117 | 117 | | |
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| 118 | 118 | | LC001845 - Page 4 of 7 |
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| 119 | 119 | | five percent (25%) of the tax shall be given to the city or town where the hotel that generated the 1 |
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| 120 | 120 | | tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-2 |
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| 121 | 121 | | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent 3 |
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| 122 | 122 | | (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation 4 |
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| 123 | 123 | | established in chapter 64 of this title. 5 |
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| 124 | 124 | | (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, 6 |
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| 125 | 125 | | thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) 7 |
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| 126 | 126 | | of the tax shall be given to the city or town where the hotel that generated the tax is physically 8 |
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| 127 | 127 | | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 9 |
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| 128 | 128 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 10 |
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| 129 | 129 | | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 11 |
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| 130 | 130 | | (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, 12 |
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| 131 | 131 | | thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) 13 |
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| 132 | 132 | | of the tax shall be given to the city or town where the hotel that generated the tax is physically 14 |
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| 133 | 133 | | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 15 |
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| 134 | 134 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 16 |
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| 135 | 135 | | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 17 |
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| 136 | 136 | | (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, 18 |
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| 137 | 137 | | twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated 19 |
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| 138 | 138 | | the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-20 |
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| 139 | 139 | | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) 21 |
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| 140 | 140 | | seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce corporation 22 |
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| 141 | 141 | | established in chapter 64 of this title. 23 |
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| 142 | 142 | | (5) With respect to the tax generated by hotels in districts other than those set forth in 24 |
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| 143 | 143 | | subsections (f)(1) through (f)(4) of this section, forty-five percent (45%) of the tax shall be given 25 |
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| 144 | 144 | | to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five 26 |
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| 145 | 145 | | percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is 27 |
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| 146 | 146 | | physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick 28 |
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| 147 | 147 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) thirty 29 |
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| 148 | 148 | | percent (30%) of the tax shall be given to the Rhode Island commerce corporation established in 30 |
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| 149 | 149 | | chapter 64 of this title. 31 |
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| 150 | 150 | | (g) For returns and tax payments received on or after July 1, 2019, except as provided in § 32 |
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| 151 | 151 | | 42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from 33 |
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| 152 | 152 | | residential units offered for tourist or transient use through a hosting platform, shall be distributed 34 |
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| 153 | 153 | | |
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| 154 | 154 | | |
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| 155 | 155 | | LC001845 - Page 5 of 7 |
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| 156 | 156 | | as follows by the division of taxation and the city of Newport: 1 |
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| 157 | 157 | | (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-2 |
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| 158 | 158 | | five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent 3 |
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| 159 | 159 | | (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated 4 |
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| 160 | 160 | | the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-5 |
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| 161 | 161 | | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent 6 |
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| 162 | 162 | | (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce corporation 7 |
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| 163 | 163 | | established in chapter 64 of this title. 8 |
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| 164 | 164 | | (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent 9 |
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| 165 | 165 | | (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall 10 |
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| 166 | 166 | | be given to the city or town where the hotel or residential unit that generated the tax is physically 11 |
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| 167 | 167 | | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 12 |
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| 168 | 168 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 13 |
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| 169 | 169 | | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 14 |
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| 170 | 170 | | (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent 15 |
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| 171 | 171 | | (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall 16 |
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| 172 | 172 | | be given to the city or town where the hotel or residential unit that generated the tax is physically 17 |
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| 173 | 173 | | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick 18 |
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| 174 | 174 | | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the 19 |
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| 175 | 175 | | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. 20 |
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| 176 | 176 | | (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five 21 |
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| 177 | 177 | | percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that 22 |
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| 178 | 178 | | generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 23 |
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| 179 | 179 | | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy 24 |
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| 180 | 180 | | percent (70%) seventy-five percent (75%) of the tax shall be given to the Rhode Island commerce 25 |
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| 181 | 181 | | corporation established in chapter 64 of this title. 26 |
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| 182 | 182 | | (5) With respect to the tax generated in districts other than those set forth in subsections 27 |
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| 183 | 183 | | (g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional 28 |
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| 184 | 184 | | tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-29 |
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| 185 | 185 | | five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit 30 |
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| 186 | 186 | | that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater 31 |
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| 187 | 187 | | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five 32 |
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| 188 | 188 | | percent (25%) thirty percent (30%) of the tax shall be given to the Rhode Island commerce 33 |
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| 189 | 189 | | corporation established in chapter 64 of this title. 34 |
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| 190 | 190 | | |
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| 191 | 191 | | |
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| 192 | 192 | | LC001845 - Page 6 of 7 |
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| 193 | 193 | | (6) For returns and tax payments received on or after July 1, 2025, except as provided in § 1 |
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| 194 | 194 | | 42-63.1-12(d), five percent (5%) of the taxes generated in the Aquidneck Island district statewide 2 |
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| 195 | 195 | | tourism district (New Shoreham, South County, Blackstone Valley) shall be given to the Rhode 3 |
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| 196 | 196 | | Island commerce corporation for tourism development, public art and events throughout the 4 |
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| 197 | 197 | | participating regions. 5 |
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| 198 | 198 | | SECTION 2. This act shall take effect upon passage. 6 |
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| 200 | 200 | | LC001845 |
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| 202 | 202 | | |
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| 203 | 203 | | |
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| 204 | 204 | | LC001845 - Page 7 of 7 |
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| 205 | 205 | | EXPLANATION |
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| 206 | 206 | | BY THE LEGISLATIVE COUNCIL |
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| 207 | 207 | | OF |
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| 208 | 208 | | A N A C T |
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| 209 | 209 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND |
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| 210 | 210 | | DEVELOPMENT |
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| 211 | 211 | | *** |
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| 212 | 212 | | This act would remove the requirement that five percent (5%) of the hotel tax generated 1 |
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| 213 | 213 | | from the South County tourism district be paid to the Greater Providence-Warwick Convention and 2 |
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| 214 | 214 | | Visitors Bureau, and would add that five percent (5%) of the hotel tax to the existing tax paid to 3 |
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| 215 | 215 | | the Rhode Island commerce corporation. 4 |
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| 216 | 216 | | This act would take effect upon passage. 5 |
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| 218 | 218 | | LC001845 |
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