🎯 STRisker: Bulletin - Connecticut
Connecticut Eyes STR Transparency with Statewide Registry
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Connecticut Eyes STR Transparency with Statewide Registry
Connecticut could soon see a major shift in how short-term rentals (STRs) operate statewide. House Bill 7238, which proposes the creation of a statewide STR registry, has cleared a key hurdle after the Finance, Revenue, and Bonding Committee advanced it on April 22. The bill now heads to the full legislature for final approval.
If passed, HB 7238 would require all STR owners and operators in Connecticut to register annually with the Department of Revenue Services (DRS). The registry would collect important details such as the STR’s address, the operator’s contact info, ownership status, and a description of the rental property. A $100 annual fee per STR would fund the creation and upkeep of the registry.
Who Must Register and File the Sales and Use Tax Return
This move marks a significant step toward statewide oversight of STRs which have operated with little regulation up until now. DRS would also be required to make the registry publicly searchable by town, giving municipalities and residents more visibility into local STR activity.
Under the proposed timeline, existing STR operators would have until January 1, 2026 to register. After that date, no STR may advertise without first being registered—or face fines up to $1,000.
Another key provision: municipalities could opt to impose a supplemental 2.75% sales tax on STR bookings with all proceeds directed toward expanding affordable housing through housing trust funds or similar programs. This local tax could begin no sooner than 60 days after a vote by the municipality and would require coordination with DRS which will publish a list of participating towns by 2027.
While DRS itself has raised concerns about the administrative burden and cost of maintaining the registry, the majority of public testimony has been in strong support. Advocacy came from regional councils of governments and hotel industry leaders alike who say the bill would help create a level playing field between STRs and traditional lodgings like hotels and B&Bs.
“This bill is a balanced approach,” said Laura Francis of the South Central Regional Council of Governments. “It empowers communities without banning or overburdening responsible hosts.”
The momentum behind HB 7238 signals growing consensus that STRs—while a popular lodging option—need clearer rules to protect housing supply and ensure accountability.
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