Connecticut 2025 Regular Session

Connecticut House Bill HB07238 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 6282 1 of 7
4	4
5	5	General Assembly Raised Bill No. 7238
6	6	January Session, 2025
7	7	LCO No. 6282
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
16	16
17	17
18	18
19	19
20	20	AN ACT ESTABLISHING A STATE SHORT -TERM RENTAL REGISTRY
21	21	AND AUTHORIZING AN OPTIONAL MUNICIPAL SUPPLEMENTAL
22	22	TAX ON SHORT-TERM RENTALS.
23	23	Be it enacted by the Senate and House of Representatives in General
24	24	Assembly convened:
25	25
26	26	Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section, 1
27	27	"short-term rental", "short-term rental facilitator", "short-term rental 2
28	28	operator" and "short-term platform" have the same meanings as 3
29	29	provided in section 12-408h of the general statutes, as amended by this 4
30	30	act. 5
31	31	(b) (1) Each short-term rental operator that lists or advertises a short-6
32	32	term rental located in the state and each owner of a short-term rental 7
33	33	located in the state who lists or advertises such rental solely through 8
34	34	means other than a short-term rental facilitator shall register each such 9
35	35	short-term rental property annually with the Department of Revenue 10
36	36	Services, in a form and manner prescribed by the Commissioner of 11
37	37	Revenue Services. Each such operator or owner that lists or advertises a 12
38	38	short-term rental prior to January 1, 2026, shall register such short-term 13
39	39	rental property with the department not later than January 1, 2026. On 14
40	40	Raised Bill No. 7238
41	41
42	42
43	43
44	44	LCO No. 6282 2 of 7
45	45
46	46	and after January 1, 2026, no such operator or owner shall list or 15
47	47	advertise a short-term rental prior to registering such short-term rental 16
48	48	property with the department. 17
49	49	(2) Each short-term rental property shall be registered separately and 18
50	50	each registration shall include: 19
51	51	(A) The address of the short-term rental; 20
52	52	(B) (i) (I) The name and contact information of the short-term rental 21
53	53	operator and, if such operator is not the short-term rental owner, the 22
54	54	name and contact information of the short-term rental owner, or (II) the 23
55	55	name and contact information of the owner of a short-term rental 24
56	56	located in the state who lists or advertises such rental solely through 25
57	57	means other than a short-term rental facilitator, and (ii) if such short-26
58	58	term rental operator or short-term rental owner is located out-of-state, 27
59	59	the name and contact information of an agent in the state for service of 28
60	60	process; 29
61	61	(C) (i) A description of the short-term rental, including the space 30
62	62	intended for use such as the entire residence, a shared space within a 31
63	63	residence or a private room, and (ii) the number of rooms for rent, where 32
64	64	applicable, at such short-term rental property; and 33
65	65	(D) A registration fee of one hundred dollars per short-term rental 34
66	66	property to cover administrative costs of establishing, updating and 35
67	67	maintaining the short-term rental registry under subsection (c) of this 36
68	68	section. 37
69	69	(c) (1) The Commissioner of Revenue Services shall establish a short-38
70	70	term rental registry to compile the registrations submitted under this 39
71	71	section. Such registry shall be posted on the Department of Revenue 40
72	72	Services' Internet web site and shall be searchable or organized in a 41
73	73	manner that allows an individual to view the registered short-term 42
74	74	rentals that are located within a given municipality. 43
75	75	Raised Bill No. 7238
76	76
77	77
78	78
79	79	LCO No. 6282 3 of 7
80	80
81	81	(2) A short-term rental operator or a short-term rental owner 44
82	82	described in subdivision (1) of subsection (b) of this section shall notify 45
83	83	the commissioner of any change in the registration information 46
84	84	provided under said subsection not later than thirty days after such 47
85	85	change takes effect. 48
86	86	(d) If the Commissioner of Revenue Services determines that a short-49
87	87	term rental operator or a short-term rental owner described in 50
88	88	subdivision (1) of subsection (b) of this section is listing or advertising a 51
89	89	short-term rental for a property that is not registered under subsection 52
90	90	(b) of this section, the commissioner may impose a civil penalty of up to 53
91	91	one thousand dollars per violation. 54
92	92	Sec. 2. (NEW) (Effective January 1, 2026) (a) As used in this section, (1) 55
93	93	"municipality" means a town, city, consolidated town and city or 56
94	94	consolidated town and borough, and (2) "short-term rental" and "short-57
95	95	term rental operator" have the same meanings as provided in section 12-58
96	96	408h of the general statutes, as amended by this act. 59
97	97	(b) (1) Notwithstanding the provisions of any special act or municipal 60
98	98	charter or ordinance, any municipality may, by vote of its legislative 61
99	99	body or, in a municipality where the legislative body is a town meeting, 62
100	100	by vote of the board of selectmen, approve a supplemental tax on each 63
101	101	retail sale of a short-term rental located within such municipality, up to 64
102	102	a maximum of two and seventy-five-hundredths per cent with respect 65
103	103	to each transfer of occupancy, from the total amount of rent received by 66
104	104	a short-term rental operator or by a short-term rental owner described 67
105	105	in subdivision (1) of subsection (b) of section 1 of this act, for the first 68
106	106	period not exceeding thirty consecutive calendar days. 69
107	107	(2) Such supplemental tax shall be effective not earlier than sixty days 70
108	108	after the date of such approval. The chief executive officer of the 71
109	109	municipality shall notify the Commissioner of Revenue Services of such 72
110	110	approval, the rate of the supplemental tax and the date the 73
111	111	supplemental tax will be effective. The commissioner shall provide 74
112	112	Raised Bill No. 7238
113	113
114	114
115	115
116	116	LCO No. 6282 4 of 7
117	117
118	118	notice of such approval, rate and effective date to each short-term rental 75
119	119	operator and each short-term rental owner described in subdivision (1) 76
120	120	of subsection (b) of section 1 of this act, that has registered a short-term 77
121	121	rental property located within such municipality. 78
122	122	(3) A municipality that has approved a supplemental tax pursuant to 79
123	123	this subsection may vote to change the rate of such tax, provided the 80
124	124	new rate does not exceed the maximum rate set forth in subdivision (1) 81
125	125	of this subsection. The provisions of subdivision (2) of this subsection 82
126	126	shall apply to any rate change approved by a municipality. 83
127	127	(c) Any supplemental tax received by a municipality pursuant to 84
128	128	subsection (d) of this section shall be used by the municipality to 85
129	129	increase the supply of housing in the municipality for renters and 86
130	130	prospective homeowners, including, but not limited to, depositing such 87
131	131	funds into a housing trust fund for the purposes set forth in section 8-2i 88
132	132	of the general statutes. 89
133	133	(d) The Commissioner of Revenue Services shall maintain an 90
134	134	accounting of all supplemental tax amounts remitted, aggregated by 91
135	135	municipality, and shall deposit such amounts in the municipal short-92
136	136	term rental account established under subsection (f) of this section. The 93
137	137	commissioner shall distribute on a quarterly basis, to each municipality 94
138	138	that has approved a supplemental tax pursuant to this section, any 95
139	139	supplemental tax amounts collected in the prior quarter that are 96
140	140	attributable to a short-term rental located within such municipality. 97
141	141	(e) Commencing in the calendar year 2027, and annually thereafter, 98
142	142	the Commissioner of Revenue Services shall post on the Department of 99
143	143	Revenue Services' Internet web site (1) a list of the municipalities, if any, 100
144	144	that have approved a supplemental tax pursuant to this section and the 101
145	145	rate of each supplemental tax approved, (2) the amount of supplemental 102
146	146	taxes collected under this section, aggregated by municipality, (3) the 103
147	147	number of short-term rentals located within each such municipality, 104
148	148	and (4) any other information the commissioner deems useful or 105
149	149	Raised Bill No. 7238
150	150
151	151
152	152
153	153	LCO No. 6282 5 of 7
154	154
155	155	relevant. 106
156	156	(f) There is established an account to be known as the "municipal 107
157	157	short-term rental account", which shall be a separate, nonlapsing 108
158	158	account. The account shall contain any moneys required by law to be 109
159	159	deposited in the account. Moneys in the account shall be expended by 110
160	160	the Commissioner of Revenue Services for the purposes of subsections 111
161	161	(c) and (d) of this section. 112
162	162	Sec. 3. Section 12-408h of the general statutes is repealed and the 113
163	163	following is substituted in lieu thereof (Effective October 1, 2025): 114
164	164	(a) As used in this section: 115
165	165	(1) "Short-term rental" means the transfer for a consideration of the 116
166	166	occupancy in a furnished residence or similar accommodation for a 117
167	167	period of thirty consecutive calendar days or less; 118
168	168	(2) "Short-term rental facilitator" means any person that (A) facilitates 119
169	169	retail sales of at least two hundred fifty thousand dollars during the 120
170	170	prior twelve-month period by short-term rental operators by providing 121
171	171	a short-term rental platform, (B) directly or indirectly through 122
172	172	agreements or arrangements with third parties, collects rent for 123
173	173	occupancy and remits payments to the short-term rental operators, and 124
174	174	(C) receives compensation or other consideration for such services; 125
175	175	(3) "Short-term rental operator" means any person that has an 126
176	176	agreement with a short-term rental facilitator regarding the listing or 127
177	177	advertising of a short-term rental in this state; and 128
178	178	(4) "Short-term rental platform" means a physical or electronic place, 129
179	179	including, but not limited to, a store, a booth, an Internet web site, a 130
180	180	catalog or a dedicated software application that allows short-term rental 131
181	181	operators to display available accommodations to prospective guests. 132
182	182	(b) [A] Each short-term rental facilitator shall be required to obtain a 133
183	183	permit to collect the tax set forth in subparagraph (B) of subdivision (1) 134
184	184	Raised Bill No. 7238
185	185
186	186
187	187
188	188	LCO No. 6282 6 of 7
189	189
190	190	of section 12-408 and any supplemental tax a municipality has elected 135
191	191	to impose pursuant to section 2 of this act, and shall be considered the 136
192	192	retailer for each retail sale of a short-term rental that such facilitator 137
193	193	facilitates on its platform for a short-term rental operator. Each short-138
194	194	term rental facilitator shall (1) be required to collect and remit for each 139
195	195	such sale any tax imposed under section 12-408 and any supplemental 140
196	196	tax imposed pursuant to section 2 of this act, (2) be responsible for all 141
197	197	obligations imposed under this chapter and section 2 of this act as if such 142
198	198	short-term rental facilitator was the operator of such short-term rental 143
199	199	and retailer for such sale, and (3) keep such records and information as 144
200	200	may be required by the Commissioner of Revenue Services to ensure 145
201	201	proper collection and remittance of such tax and supplemental tax. 146
202	202	(c) On and after January 1, 2026, each short-term rental facilitator with 147
203	203	sales subject to the tax set forth in subparagraph (B) of subdivision (1) 148
204	204	of section 12-408 for which the short-term rental facilitator files a return 149
205	205	under this chapter shall disaggregate the information in the return, in 150
206	206	such form as may be prescribed by the Commissioner of Revenue 151
207	207	Services, to indicate the municipalities in which the short-term rentals 152
208	208	that generated such sales are located and list by municipality the 153
209	209	amount of such tax collected and the amount of the supplemental tax 154
210	210	collected, as applicable. The provisions of this subsection shall apply to 155
211	211	a short-term rental owner described in subdivision (1) of subsection (b) 156
212	212	of section 1 of this act who lists and advertises more than one short-term 157
213	213	rental in the state, which short-term rentals are located in more than one 158
214	214	municipality. 159
215	215	[(c)] (d) A short-term rental operator shall not be liable for the 160
216	216	collection of the tax set forth in subparagraph (B) of subdivision (1) of 161
217	217	section 12-408 or a supplemental tax imposed pursuant to section 2 of 162
218	218	this act to the extent the short-term rental facilitator collected the tax or 163
219	219	taxes due on such rent. 164
220	220	Raised Bill No. 7238
221	221
222	222
223	223
224	224	LCO No. 6282 7 of 7
225	225
226	226	This act shall take effect as follows and shall amend the following
227	227	sections:
228	228
229	229	Section 1 October 1, 2025 New section
230	230	Sec. 2 January 1, 2026 New section
231	231	Sec. 3 October 1, 2025 12-408h
232	232
233	233	Statement of Purpose:
234	234	To establish a state short-term rental registry, authorize an optional
235	235	municipal supplemental tax on short-term rentals and require short-
236	236	term rental return filings to include disaggregated sales tax information.
237	237
238	238	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
239	239	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
240	240	underlined.]
241	241