WOONSOCKET – The city’s meal and beverage taxes climbed by some 68 percent from 2021 to 2025, from $594,333 in 2021 to $1,000,397 in 2025.
That number dipped in 2026, to $854,281, according to state statistics available online, but the total was nearly $$260,000 more than 2021, or up about 44 percent, and nearly $100,000 more than 2024.
The sale of food and beverages made by an eating and/or drinking establishment is subject to certain Rhode Island taxes. All such establishments are required to charge and collect 7 percent Rhode Island sales tax and a 1 percent local tax on the sales of meals and beverages, and communities receive the 1 percent total collected within their borders.
Woonsocket Director of Human Services Margaux Morisseau said this is another sign of economic progress for the city.
The growth, said Morisseau, reflects increased economic activity in Woonsocket’s food and beverage sector, and means additional revenue coming directly back to the community.
“So when you grab dinner, meet friends for coffee, or try a new local restaurant, you’re not just supporting a Woonsocket business, you’re helping support the city, too,” she wrote recently.
Under Rhode Island law, a 1 percent local tax is collected on taxable meals and beverages, with that revenue distributed quarterly to the City. In fiscal year 2021, Woonsocket received approximately $594,000. Today, that revenue has grown to more than $1 million annually.
In 2025, Woonsocket’s 31 percent growth rate from the year before, equaling a difference of $236,668, was good for second in the state, behind only Richmond. For comparison, neighboring North Smithfield’s rate went up by 18.3 percent.
Pawtucket, which Woonsocket is often compared to and which is generally seen as ahead of Woonsocket, saw an increase of 63 percent from 2021 to 2025. Other urban core cities saw jumps closer to 100 percent over the same time period. The state average growth on the tax was 78 percent over the same time.
The total collected in 2024 was $736,730, while the total collected in 2025 was $1,000,397.
The following are the revenue numbers for Woonsocket since 2021, the first year available online:
$594,333 in 2021
$655,816 in 2022
$732,610 in 2023
$763,730 in 2024
$1,000,397 in 2025
$854,281 in 2026
The $76,061 listed so far in 2027 is up 14.3 percent for just the month of July, compared to $66,534 for July of 2025.
Morisseau told The Local Insider they are looking into some economic indicators with Skills for Rhode Island Future, which helps with job support and career enhancement, as the city moves forward on implementing the state’s roadmap for economic development.
Working with Skills, Neighborworks, the Downtown Woonsocket Collaborative and others, she said, they are also working on a Main Street initiative called Merry on Main, building on the success popup shops had at the Providence Place Mall during the Summer of Soccer, but with a holiday twist.
On Sept. 14, the City Council passed a resolution supporting Merry on Main and temporarily waiving certain city approval and licensing requirements for participating activities.
“Woonsocket is home to established arts, cultural, and tourism attractions, including The Polar Express Train Ride, The Museum of Work & Culture, and the Stadium Theatre, which draw visitors from throughout Rhode Island and beyond to Downtown Woonsocket during the holiday season, and Merry on Main seeks to encourage these visitors to extend their time downtown by exploring Main Street, shopping at local businesses, dining at local restaurants, and experiencing more of what Downtown Woonsocket has to offer,” states the resolution from that meeting.
Merry on Main will run Nov. 27 to Jan. 2, with final breakdown and removal completed by Jan. 6. It will activate vacant storefronts through one or more temporary uses, including holiday pop-up shops featuring about 60 Rhode Island -based craft and artrisan vendors, with preference for Woonsocket-based vendors, creative holiday window displays that bring light, color and visual interest to otherwise vacant spaces, and one-day pop-up music Venus featuring live performances as part of a special day of music on Dec. 12.
Councilor Kristina Fox said at the meeting that she was supporting the resolution to promote any kind of economic development in the city and give people more reasons to show up and keep coming back to the downtown. She said it’s not about the “warm and fuzzy” initiatives for Instagram, but about creating sustainable revenue streams. If Woonsocket builds it, she said, people will come, and this is a great investment in local businesses.
Councilor Denise Sierra said that while she supported the effort, as a former small business owner herself, she questions the benefits for brick-and-mortar businesses that are already carrying the load every day of the year. She said she gets the same feeling for flower shops each Easter when short-term sellers hit the streets. She said there’s never a break for those longstanding businesses, and she hopes there can be a focus on those “sweating it out” every day. She said she hopes some of those visitors will go to places such as New York Lunch and River Falls.
Councilor Valerie Gonzalez said she loves the idea of Merry on Main to promote the city and drive traffic. She said people often come out of the Stadium Theatre and see mostly just darkness, not necessarily knowing that Ciro’s is around the corner or about the other offerings in the area. Bringing in home-based small businesses and artisans will act as a hook to bring more people in, she said.
