Projo 7 to 7 News Blog

Statewide collections of meals and beverage taxes rose 5 percent in January compared to the same month a year ago, according to numbers from the Rhode Island Department of Revenue.

The city of Warwick led the way, accounting for nearly $17,000 of the statewide $67,000 increase in tax collections. Warwick, the second-largest collector of meals and beverages taxes, climbed 11 percent in January versus last year.

The largest collector, Providence, saw a 1.4 percent drop, accounting for a $3,900 decrease in collections.

The state levies a 1-percent tax, which is returned to the cities and towns, on all food and beverage items that are sold for immediate consumption. Though seen as a barometer of the bar and restaurant industry, the tax includes a variety of sources, including vending machines and ready-to-eat products in supermarkets.

The 1 percent tax means that total spending on meals and beverages in January was $131 million, up from $125 million a year ago.

 Tags  economy Providence restaurants Warwick

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