It is enacted by the General Assembly as follows:

SECTION 1. Sections 42-63.1-3 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 -- Except as provided in section 42-63.1-12, one percent (1%) of the six percent (6%) hotel tax shall be deposited as general revenues and the remaining five percent (5%) shall be the proceeds of the hotel tax 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 section 42-63.1-5(5) and sixteen percent (16%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau established in section 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 section 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 section 42-63.1-5(7) shall be deposited as general revenues;

(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the hotel, which 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 deposited as general revenues and seven percent (7%) to the Greater Providence-Warwick Convention and Visitors' Bureau.

42-63.1-12. Distribution of tax to Rhode Island Convention Center Authority -- (a) One percent (1%) of the six percent (6%) The proceeds of the hotel tax generated by any and all hotels in which the Rhode Island Convention Center Authority maintains a majority ownership interest therein shall be deposited as general revenues and the remaining five percent (5%) 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 this chapter.

(b) 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.

SECTION 2. Section 44-18-36.1 of the General Laws in Chapter 44-18 entitled "Sales and Use Taxes - Liability and Computation" is hereby amended to read as follows:

44-18-36.1. Hotel tax -- There is imposed a hotel tax of six percent (6%) five percent (5%) upon the total consideration charged for occupancy of any space furnished by any hotel in this state. The hotel tax is in addition to any sales tax imposed. This hotel tax is administered and collected by the division of taxation and unless provided to the contrary in this chapter, all the administration, collection, and other provisions of chapters 18 and 19 of this title apply. Provided, that the city of Newport shall collect the tax generated by hotels physically located within the city of Newport, and, within ten (10) days of the receipt of the tax, shall distribute the tax in accordance with section 42-63.1-3; provided, further, that the city of Newport shall submit to the division of taxation, by the first day of March and the first day of September of each year in which the city collects the tax, a report detailing the city's receipts and distributions of funds collected under this chapter for the prior six (6) month period ending thirty (30) days prior to the reporting date. Nothing in this chapter shall be construed to limit the powers of the convention authority of the city of Providence established pursuant to the provisions of chapter 84 of the public laws, January session, 1980, except that distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than chapter 84.

SECTION 3. This act shall take effect thirty (30) days after passage.