Rhode Island Senate Bill S1046

Rhode Island 2025 Regular Session

• Introduced: 5/9/25
• Refer: 5/9/25

Caption

Allows communities to increase their local share of hotel tax collection by an additional two percent (2%).

Impact

If enacted, S1046 will directly impact the financial structures of cities and towns that utilize hotel taxes as a means of generating revenue. By allowing municipalities to impose an increased tax rate, local governments can better capture the economic benefits derived from tourism and transient guests. This legislation could lead to more robust funding for local initiatives and services, ultimately contributing to improved community infrastructure and public amenities.

Summary

Bill S1046 aims to amend state taxation laws specifically regarding hotel taxes. The primary objective of the bill is to grant communities the authority to increase their local share of hotel tax collections by an additional two percent (2%). This measure is likely to enhance local revenue streams for municipalities, allowing them to better fund public services and community projects that may rely on tourism-related income.

Contention

Some points of contention surrounding the bill may arise from varying opinions on tax increases at the local level. While proponents of S1046 argue that the additional revenue is essential for local economic growth and support for community services, opponents may express concerns about the potential burden on businesses in the hospitality industry. Critics might worry about possible pushback from hotel operators who may see these tax increases as excessive, potentially impacting their competitive standing in the tourism market.