Westerly meal and drink tax collections mirror enterprise good points in 2019 | Westerly

Westerly’s eating places, bars, and different sellers of drinks and ready meals reported taxable gross sales of $59.2 million through the city’s prolonged tourism season final yr, a rise of seven.2% in contrast with the identical interval in 2018.

The figures, from the Rhode Island Department of Revenue, are for May by September, months that sometimes account for about 60% of all such gross sales in Westerly through the calendar yr.

The 1% native meal and beverage tax is collected by the state and goes to the municipality the place the companies are positioned. It is a direct measure of the financial system and produced $990,459 for the Town of Westerly in fiscal 2019, which led to June — a acquire of almost $60,000 from the yr earlier than.

Although June by August is the prime tourism and trip season, enterprise exercise mirrored within the tax collections noticeably accelerates in May and drop offs in October. In 2019, May’s meal / beverage tax income of $86,456 was $41,642 increased than the gathering in April. In October, the taxes amounted to $64,973, in contrast with $93,441 in September — a decline of 30% and in step with earlier year-over-year knowledge. (There are wider swings within the April-to-May figures.)

For the core summer time months, yearly variations go hand-in-hand with the climate, particularly on seashore weekends. Looking again 10 years, this previous August was a banner yr for Westerly companies, with meal / beverage collections amounting to $167,588. That was the best month-to-month whole for the city within the Office of Fiscal Analysis’ listings courting to 2010.

The highest tax assortment for July was $153,062 in July 2018. In the previous 10 years, July has been the busiest month six occasions. August produced extra income for the city final yr and in 2017, 2014, and 2010.

Westerly’s rating amongst Rhode Island municipalities corresponds with the season. In August, the city ranked fifth in meal / beverage taxes, behind Providence ($510,422), Newport, Warwick, and Cranston. By October, Westerly was eleventh, one step under East Greenwich, a smaller city with nearly a thousand {dollars} extra in meal / beverage taxes.

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