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