Summer hotel taxes soar like fireworks

Bristol hotel tax revenue in August over 2015 more than triples; collections even higher in July

By Patrick Luce
Posted 1/22/17

The summer tourism season brings visitors into Bristol who spend money in the many shops and restaurants in town. Even though there is no large hotel in town, those visitors are apparently still …

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Summer hotel taxes soar like fireworks

Bristol hotel tax revenue in August over 2015 more than triples; collections even higher in July

Posted

The summer tourism season brings visitors into Bristol who spend money in the many shops and restaurants in town. Even though there is no large hotel in town, those visitors are apparently still staying in town beyond a single day.

Overnight visitors to Bristol have apparently increased in the past year as the amount the town collected in monthly hotel taxes increased dramatically this summer, contributing to an overall state revenue increase. The state charges a 1 percent tax on room rentals, most of which is reinvested in tourism initiatives.

Bristol collected $3,475 in hotel taxes in August 2016, a 172 percent increase over the $1,278 the town collected in August 2015, according to a new report released by the Rhode Island Department of Revenue, which issues monthly reports on hotel tax revenue. That is the third-largest increase among the 39 cities and towns in Rhode Island. Only Charlestown (219 percent) and Little Compton (12,740 percent) had larger increases year-to-year, though Little Compton brought in just $10 in hotel taxes revenue in August 2015. East Greenwich slotted in just behind Bristol, with a 150 percent August increase.

Despite Bristol’s impressive August increase, hotel tax revenue was even higher in July 2016. Tax collections in Bristol dropped 4.2 percent between July and August, with July collections perhaps getting a boost from the Fourth of July celebration in town.

Most of Bristol’s revenue came from individual room sales at the small, boutique hotels and bed and breakfasts in town. A smaller amount came from homeowners renting rooms or entire houses to visitors.

The municipal increases helped the state bring in more than $600,000 in August 2016, a 9.7 percent increase over the same month in 2015.

The apparent increase in overnight guests in Bristol comes despite the lack of a large hotel in town, despite several attempts to establish one over the years. The latest proposal, for a Comfort Inn on Gooding Avenue, is on hold after the state Department of Environmental Management denied the plan because of wetlands concerns. The property, 1.53 acres across from Broadcommon Road, contains freshwater wetlands that would be damaged in the development, according to DEM Permitting Supervisor Martin Wencek.

The elimination of 1.53 acres of swampland would have a detrimental effect on wildlife in the area, eliminating habitat, including feeding grounds, breeding areas and nesting sites, according to a letter Mr. Wencek sent denying the plan. The plans did not include a suitable buffer between the proposed hotel and the wildlife habitat, Mr. Wencek wrote. The hotel’s impermeable surfaces like the roof and parking lot would not absorb water and could also increase flooding in the area, potentially swamping properties downstream, DEM ruled, especially during heavy rainstorms.

The property developers, who include state Rep. Ken Marshall, are modifying their plan in an attempt to meet DEM regulations. The scope of the project or the location on the property could be altered. Mr. Marshall has not indicated a timeline for a new proposal.

Bristol property taxes

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