2021 -- S 0897

========

LC002814

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: May 14, 2021

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 42-63.1-3, 42-63.1-5 and 42-63.1-12 of the General Laws in Chapter

42-63.1 entitled "Tourism and Development" are hereby amended to read as follows:

     42-63.1-3. Distribution of tax.

     (a) For returns and tax payments received on or before December 31, 2015, except as

provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax

collected from residential units offered for tourist or transient use through a hosting platform, shall

be distributed as follows by the division of taxation and the city of Newport:

     (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided

further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau

established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

Convention Authority of the city of Providence established pursuant to the provisions of chapter

84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts

attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island

commerce corporation as established in chapter 64 of this title.

     (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the

hotel that generated the tax is physically located, to be used for whatever purpose the city or town

decides.

     (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence-

Warwick Convention and Visitors' Bureau.

     (b) For returns and tax payments received after December 31, 2015, except as provided in

§ 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from

residential units offered for tourist or transient use through a hosting platform, shall be distributed

as follows by the division of taxation and the city of Newport:

     (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-

five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

title.

     (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent

(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically

located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

(25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically

located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated

LC002814 - Page 2 of 9

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%)

of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

title.

     (5) With respect to the tax generated by hotels in districts other than those set forth in

subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given

to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five

percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax

shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax

collected from residential units offered for tourist or transient use through a hosting platform shall

be distributed as follows by the division of taxation and the city of Newport: twenty-five percent

(25%) of the tax shall be given to the city or town where the residential unit that generated the tax

is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island

commerce corporation established in chapter 64 of this title.

     (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend

on the promotion and marketing of Rhode Island as a destination for tourists or businesses an

amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

chapter for the fiscal year.

     (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-

12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential

units offered for tourist or transient use through a hosting platform, shall be distributed in

accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this

section by the division of taxation and the city of Newport.

     (f) For returns and tax payments received on or after July 1, 2018, except as provided in §

42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from

residential units offered for tourist or transient use through a hosting platform, shall be distributed

as follows by the division of taxation and the city of Newport:

     (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-

five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

LC002814 - Page 3 of 9

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the

tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel that generated the tax is physically

located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel that generated the tax is physically

located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%)

of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this

title.

     (5) With respect to the tax generated by hotels in districts other than those set forth in

subsections (b)(1) through (b)(4) of this section, forty-five percent (45%) of the tax shall be given

to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five

percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (g) For returns and tax payments received on or after July 1, 2019, except as provided in §

42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from

residential units offered for tourist or transient use through a hosting platform, shall be distributed

as follows by the division of taxation and the city of Newport:

     (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty-

five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent

LC002814 - Page 4 of 9

(25%) of the tax shall be given to the city or town where the hotel or residential unit that generated

the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent

(25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

64 of this title.

     (2) For the tax generated in the Providence district as defined in § 42-63.1-5, :

     (i) Thirty thirty percent (30%) of the tax shall be given to the Providence district, twenty-

five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit

that generated the tax is physically located, twenty-four percent (24%) of the tax shall be given to

the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and

twenty-one percent (21%) of the tax shall be given to the Rhode Island commerce corporation

established in chapter 64 of this title.

     (ii) Notwithstanding the foregoing provisions of this section, on or after July 1, 2021,

thirteen percent (13%) of the tax shall be given to the Providence district, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel or residential unit that generated the tax

is physically located, forty percent (40%) of the tax shall be given to the greater Providence -

Warwick convention and visitors bureau established pursuant to the provisions of § 42-63.1-11,

and twenty-two percent (22%) of the tax shall be given to the Rhode Island commerce corporation

established in chapter 64 of this title.

     (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent

(30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall

be given to the city or town where the hotel or residential unit that generated the tax is physically

located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the

tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title.

     (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five

percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that

generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 64 of this title.

     (5) With respect to the tax generated in districts other than those set forth in subsections

(g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional

tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty-

LC002814 - Page 5 of 9

five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit

that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five

percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 64 of this title.

     42-63.1-5. Regional tourism districts.

     (a) The state of Rhode Island is divided into eight (8) regional tourism districts to be

administered by the tourism council, convention and visitor's bureau or the Rhode Island commerce

corporation established in chapter 42-64 as designated in this section:

     (1) South County district which shall include Westerly, Charlestown, Narragansett, South

Kingstown, North Kingstown, Hopkinton, Exeter, Richmond, West Greenwich, East Greenwich,

and Coventry to be administered by the South County tourism council, inc.;

     (2) Providence district consists of the city of Providence to be administered by the

Convention Authority of the City of Providence city of Providence department of art, culture and

tourism.

     (3) Northern Rhode Island district consists of Pawtucket, Woonsocket, Lincoln, Central

Falls, Cumberland, North Smithfield, Smithfield, Glocester and Burrillville to be administered by

the Blackstone Valley tourism council, inc.;

     (4) Aquidneck Island district consists of Barrington, Bristol, Warren, Newport, Jamestown,

Middletown, Portsmouth, Tiverton and Little Compton to be administered by the Newport and

Bristol County convention and visitors bureau;

     (5) Warwick district consists of the city of Warwick to be administered by the city of

Warwick department of economic development;

     (6) Block Island district which shall consist of the town of New Shoreham to be

administered by the New Shoreham tourism council, inc.;

     (7) East Providence to be administered by an entity that shall be acceptable to the economic

development corporation; provided that all funds generated in the city of East Providence shall be

held by the Rhode Island division of taxation until such time as the city of East Providence elects

to become a member of a regional tourism district at which time the monies held by the Rhode

Island division of taxation shall be transferred to the tourism district or convention visitors' bureau

selected by the city of East Providence;

     (8) Statewide district consists of all cities and towns not delineated in subdivisions (1)

through (7) to be administered by the Rhode Island commerce corporation established in chapter

42-64.

LC002814 - Page 6 of 9

     (b) Before receiving any funds under this chapter, the organizations designated to receive

the funds on behalf of the South County regional tourism district and the Northern Rhode Island

regional tourism district shall be required to apply to and receive approval from the Rhode Island

commerce corporation pursuant to guidelines promulgated by the Rhode Island commerce

corporation. The corporation shall review the eligibility of the regional tourism district

organizations to receive the funds at least annually.

     (c) On or before January 1, 2016 and every January 1 thereafter, all regional tourism

districts created under these sections shall be required to seek and obtain the approval of the

executive office of commerce regarding the incorporation of common statewide marketing themes,

logos, and slogans, among other features, prior to the release of lodging tax funds to the districts.

     42-63.1-12. Distribution of tax to Rhode Island Convention Center Authority.

     (a) For returns and tax received on or before December 31, 2015, the proceeds of the hotel

tax generated by any and all hotels physically connected to the Rhode Island Convention Center

shall be distributed as follows: twenty-seven percent (27%) shall be deposited as general revenues;

thirty-one percent (31%) shall be given to the convention authority of the city of Providence; twelve

percent (12%) shall be given to the greater Providence-Warwick convention and visitor's bureau;

thirty percent (30%) shall be given to the Rhode Island convention center authority to be used in

the furtherance of the purposes set forth in § 42-99-4.

     (b) For returns and tax received after December 31, 2015, the proceeds of the hotel tax

generated by any and all hotels physically connected to the Rhode Island Convention Center shall

be distributed as follows: twenty-eight percent (28%) shall be given to the convention authority of

the city of Providence; twelve percent (12%) shall be given to the greater Providence-Warwick

convention and visitor's bureau; and sixty percent (60%) shall be given to the Rhode Island

Commerce Corporation established in chapter 64 of title 42.

     (c) The Rhode Island Convention Center Authority is authorized and empowered to enter

into contracts with the Greater Providence-Warwick Convention and Visitors' Bureau in the

furtherance of the purposes set forth in this chapter.

     (d) For returns and tax received on or after July 1, 2018, and before July 1,2021, the

proceeds of the hotel tax generated by any and all hotels physically connected to the Rhode Island

Convention Center shall be distributed as follows: thirty percent (30%) shall be given to the

convention authority of the city of Providence; twenty percent (20%) shall be given to the greater

Providence-Warwick convention and visitor's bureau; and fifty percent (50%) shall be given to the

Rhode Island Commerce Corporation established in chapter 64 of title 42.

     (e) For returns and tax received on or after July 1, 2021, the proceeds of the hotel tax

LC002814 - Page 7 of 9

generated by any and all hotels physically connected to the Rhode Island convention center shall

be distributed as follows: thirteen percent (13%) shall be given to the city of Providence department

of art, culture and tourism; twenty-five percent (25%) of the tax shall be given to the city or town

where the hotel or residential unit that generated the tax is physically located; forty percent (40%)

shall be given to the greater Providence-Warwick convention and visitor's bureau; and twenty-two

percent (22%) shall be given to the Rhode Island commerce corporation established in chapter 64

of this title.

     SECTION 2. This act shall take effect upon passage.

========

LC002814

========

LC002814 - Page 8 of 9

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

***

     This act would replace the convention authority of the city of Providence with the city

department of art, culture and tourism as the administrator of the Providence tourism district.

Additionally, the act would revise hotel tax distribution in the Providence region and would

establish a new hotel tax distribution formula for taxes generated by hotels physically connected to

the convention center.

     This act would take effect upon passage.

========

LC002814

========

LC002814 - Page 9 of 9