The bill seeks to amend Section 42-63.1-3 of the General Laws in Chapter 42-63.1, which pertains to the distribution of hotel tax revenue in Rhode Island. The proposed changes include updated distribution percentages for various entities such as regional tourism districts, cities or towns with hotels, the Rhode Island commerce corporation, and the Greater Providence-Warwick Convention and Visitors’ Bureau. The amendment specifies the allocation of tax revenue for different districts and for residential units offered for tourist use through hosting platforms. The bill mandates that the Rhode Island commerce corporation must use at least the total proceeds it receives from the hotel tax for promoting and marketing the state. The insertions in the bill update the distribution percentages and recipients, with no deletions mentioned. The changes are set to apply to tax payments received after specified dates, including provisions for the fiscal year 2016-2017 and for payments received on or after July 1, 2018.

Additionally, the bill proposes a reallocation of the hotel tax within the South County district, removing the current five percent (5%) share given to the Greater Providence-Warwick Convention and Visitors Bureau and increasing the South County tourism district's share from forty-five percent (45%) to fifty percent (50%). The remaining tax distribution to the city or town and the Rhode Island commerce corporation remains unchanged at twenty-five percent (25%) each. This amendment would be effective for returns and tax payments received on or after July 1, 2024, and would not alter any provisions in § 42-63.1-12(d). The act would take effect immediately upon passage, indicating that the legislative changes would be implemented as soon as the bill is signed into law.

Statutes affected:
2343: 42-63.1-3