General Assembly Raised Bill No. 7238 proposes the establishment of a state short-term rental registry and grants municipalities the authority to impose a supplemental tax on short-term rentals. Effective October 1, 2025, all short-term rental operators must register their properties annually with the Department of Revenue Services (DRS), providing essential information such as property address, contact details, and a $100 registration fee. The DRS will maintain a searchable registry and enforce civil penalties for non-compliance. Additionally, starting January 1, 2026, municipalities can approve a supplemental tax on short-term rentals, capped at 2.75% for stays of up to 30 days, with the revenue directed towards enhancing local housing supply. The bill also repeals and replaces existing definitions related to short-term rentals in section 12-408h of the general statutes to ensure clarity.

The legislation further stipulates that short-term rental facilitators will be considered the retailer for each sale, requiring them to collect and remit both state and municipal taxes. Facilitators must maintain records as mandated by the Commissioner of Revenue Services and will need to disaggregate sales tax information in their returns, specifying the municipalities where rentals are located and the tax amounts collected. Key insertions in the bill include the requirement for facilitators to handle tax collection and the clarification that operators are not liable for tax collection if the facilitator has already done so. The effective dates for these provisions are set for October 1, 2025, and January 1, 2026.

Statutes affected:
Raised Bill: 12-408h