Thanks to the hard work of local officials and legislators, #MiddletownRI can expect to see a bump in non-tax revenues from a 1 percent rise in the hotel tax in Fiscal 2026. That was one of many items discussed Monday to help our community.
HOTEL TAX BOOST EXPECTED TO HELP MIDDLETOWN
MIDDLETOWN, RI (NOVEMBER 18, 2025) – Middletown can expect a significant increase in the hotel tax collected in Fiscal 2026.
Thanks to the hard work of Middletown officials and local legislators, the General Assembly approved a 1 percent hike in the amount paid by those who stay in area lodging.
The projected net result is expected to be close to $2 million, up from the $1.5 million in the approved Fiscal 2025 budget. That’s more than a 31 percent rise.
During a well-attended meeting in Town Hall, the Town Council and local leaders thanked State Sen. Louis P. DiPalma and State Rep. Terri Cortvriend and Alex Finkelman as well as lobbyist Rick McAuliffe of The Mayforth Group for their efforts to get the proposal across the goal line.
“I want to thank our delegation and our lobbyist Rick McAuliffe for his work over the past few months,” Town Administrator Shawn J. Brown said. “We were very successful in getting the Hotel Tax increase last year by 1 percent. That’s a significant new revenue source for the Town of Middletown on a non-tax basis, which would not have been possible without the support of the local delegation.”
In recent years, local leaders have sought new ways to help cover the bills without adding to the burden of area taxpayers.
Boosting the Hotel Tax has been seen as a good approach to capitalize on the strong summer season without dipping into the pockets of local residents and businesses.
The item was broached during a discussion about the items the council and area officials would like to see addressed by the General Assembly in January 2026, when the part time legislature starts meeting again.
Other asks of local legislators during the 2026 session included:
- Boosting the state reimbursement rates for library construction, which haven’t been updated since 2017.
- Making all Middletown veterans honorably discharged from military service eligible for local tax exemptions.
- Creating a pool to help fund high-cost special education cases, which can add tens of thousands of dollars — and more — for some students.
- Increasing the number of regions for busing out-of-district students to promote higher efficiency, cost savings and reducing bus time rides.
- Expanding where speed cameras are allowed from just school zones to anywhere speeding occurs regularly in the community.
- Reintroducing legislation to reimburse Middletown for costs associated with making Middletown Middle-High School a regional emergency shelter with a generator.
- Adding Naval Station Newport and federal military installations to the list of organizations eligible for Payment In Lieu Of Taxes (PILOT) funding.
- Advocating for funding and support for housing and infrastructure improvements associated with the projected addition of about 1,500 new personnel for National Oceanic & Atmospheric Administration and US Coast Guard.
- Expanding the eligibility for suburban communities to qualify for tax credits through the state’s affordable housing program.
- Advocating for the acceleration of State Transportation Improvement Program (STIP) projects in Middletown, particularly paving, sidewalks and streetscape work on lower Aquidneck Avenue.
- Seeking continuing funding for several state efforts including the Learn365 Program, the Municipal Road Program, the Resilient Rhody Infrastructure Fund and Main Street RI Streetscape Improvement Fund.
Council President Paul M. Rodrigues said he and the rest of the council understood that DiPalma, Cortvriend and Finkelman were very busy and anything they could do upstate to help Middletown was genuinely appreciated.
“I’d just like to end by thanking you for a lot of the things that people don’t see or realize that you do behind the scenes,” Rodrigues said. “Each town that you represent, whether it’s Middletown, Portsmouth, Jamestown, Tiverton, parts of Little Compton, any help that you give us, we’re grateful for. You probably don’t hear ‘Thank you’ a lot, but we’re saying it publicly.”
Document Link: https://mdl.town/NYCU-Leg26
About Middletown
The Town of Middletown is a vibrant municipality located on Aquidneck Island, known for its scenic beauty, historic landmarks, diverse economy and strong sense of community. For more information about all we have to offer, visit MiddletownRI.gov online.
Media Contact
Matt Sheley
Public Affairs Officer
401-842-6543
msheley@middletownri.com