This bill proposes an amendment to Section 42-63.1-3 of the General Laws in Chapter 42-63.1, which pertains to the distribution of hotel tax proceeds in Rhode Island. The amendment affects the allocation of tax proceeds generated by hotels within the South County district. Specifically, the bill seeks to delete the current five percent (5%) allocation to the Greater Providence-Warwick Convention and Visitors Bureau and instead increase the South County tourism district's share from forty-five percent (45%) to fifty percent (50%). The remaining proceeds would continue to be distributed with twenty-five percent (25%) to the city or town where the hotel is located and twenty-five percent (25%) to the Rhode Island commerce corporation.

The bill also mandates that the Rhode Island commerce corporation must allocate a certain amount of its budget each fiscal year to promote and market Rhode Island as a tourist or business destination. The changes in tax distribution are set to apply to returns and tax payments received on or after July 1, 2024, and the act would take effect immediately upon passage. The bill clarifies that these amendments would not affect any provisions in ยง 42-63.1-12(d).

Statutes affected:
2343: 42-63.1-3