Connecticut Senate Bill SB00199

Connecticut 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

An Act Authorizing A Municipal Occupancy Fee For Short-term Rentals.

Impact

If enacted, this bill will likely affect various aspects of state law concerning local taxation and revenue generation. It would empower municipalities to directly address the economic implications of short-term rentals, potentially enhancing their ability to fund local services and infrastructure. With the rise in short-term rental properties, this bill offers a means for local governments to capture revenue from an industry that has traditionally not been taxed, contributing to the sustainability and growth of local economies.

Summary

SB00199 proposes to amend state general statutes to allow municipalities to impose a two percent occupancy fee on short-term rental accommodations. The bill seeks to provide an avenue for local governments to generate additional revenue from the growing short-term rental market, responding to the increasing popularity of platforms like Airbnb and VRBO. By enabling municipalities to implement this fee, the bill highlights the need for local governments to meet their financial demands while managing the impact of such rentals in their communities.

Contention

While SB00199 could provide essential funds for municipalities, it may also lead to contention regarding the fairness and ethics of taxing short-term rentals. Opponents may argue that such fees could raise the cost of renting, affecting affordability for visitors and locals alike. Critics could also express concerns about the regulatory burden placed on hosts of short-term rentals, which may discourage participation in the market. The potential for pushback from both the rental community and consumers showcases the bill's complexity in balancing revenue generation while maintaining an appealing rental environment.