The proposed bill, General Assembly Proposed Bill No. 5205, aims to amend chapter 219 of the general statutes to allocate a portion of the room occupancy tax collected by the state from short-term rental properties directly to the municipalities where these rentals are located. This change is intended to provide financial support to local governments that may be impacted by the presence of short-term rentals in their communities.

The bill does not specify the exact percentage or amount of the room occupancy tax that will be dedicated to municipalities, nor does it outline any specific conditions or requirements for the distribution of these funds. The primary goal is to ensure that local municipalities receive a share of the tax revenue generated from short-term rentals, thereby enhancing their ability to manage and regulate these properties effectively.