State Meal and Beverage Tax Revenues Up

State Meal and Beverage Tax Revenues Up

The State of Rhode Island Monthly Meal and Beverage Report, a monthly report issued by the Rhode Island Department of Revenue, estimates that the 1.0 percent local meal and beverage tax generated over $6.0 million in revenues for the state during the summer months. The report also suggests elevated levels of summer spending on meals and beverages in 2010 as compared to spending in 2009. Tax collections totaled $1.8 million in June 2010 or 1.3 percent higher than in June 2009, $2.0 million in July 2010 or 9.6 percent more than in July 2009, and $2.02 million or 16.5 percent more than in August 2009.

In terms of the total 2010 fiscal year tax collections, the state local meal and beverage tax collections totaled $4.0 million or 5.6 percent more than the $3.8 million collected through fiscal year-to-date August 2009. In terms of proportional growth, Little Compton posts the most growth at 32.2 percent followed by Johnston and Bristol at 16.5 and 16.4 percent respectively. However, Newport posts the largest nominal increase for the fiscal year-to-date tax collections in August 2010 at $508,798 up $62,145 from 2009 levels which may suggest a much needed increase in the level of summer tourism for 2010.