Removes the requirement that 5% of the hotel tax generated from regional tourism districts be paid to the Greater Providence-Warwick Convention and Visitors Bureau, and adds that 5% of the hotel tax to the existing tax paid to the RI commerce corporation.

Rhode Island Hotel Tax Funding Bill

This bill changes how a portion of Rhode Island's hotel tax money is distributed. Currently, when hotels in certain regional tourism districts collect taxes, 5% of that money is required to go to the Greater Providence-Warwick Convention and Visitors Bureau — an organization that promotes tourism in the Providence and Warwick area. This bill would eliminate that automatic payment to the Convention and Visitors Bureau.

Instead of going to the Convention and Visitors Bureau, that same 5% would be redirected to the Rhode Island Commerce Corporation, a state agency responsible for promoting economic development and tourism across the entire state. In practical terms, this means the Commerce Corporation would receive a larger share of hotel tax revenue than it currently does, while the Greater Providence-Warwick Convention and Visitors Bureau would no longer receive this dedicated funding stream.

The people most directly affected by this change include hotels operating within regional tourism districts, the staff and programs of the Greater Providence-Warwick Convention and Visitors Bureau, and the Rhode Island Commerce Corporation. Visitors and the broader tourism industry could also be indirectly affected depending on how each organization uses the funds to promote travel and local events. The bill has been introduced and sent to the Senate Finance Committee, where lawmakers will evaluate its potential impact before deciding whether to move it forward.