🎯 STRisker: Bulletin - Connecticut
Connecticut Considers STR Registry and Supplemental Tax
Connecticut Weighs STR Registry and Local Tax Option
Photo by thewaterbury.com
Lawmakers are considering a bill that would establish a statewide registry for short-term rental properties and allow municipalities to impose an additional tax of up to 2.75% on those stays.
House Bill 5536, raised by the legislature’s Finance, Revenue and Bonding Committee, would require owners of short-term rentals — such as those listed on Airbnb and Vrbo — to register with the state and report activity data. The measure is scheduled for discussion during a committee meeting Monday.
Supporters, including the Connecticut Conference of Municipalities, say the proposal would give local governments better tools to manage a rapidly growing sector. Municipal officials argue a statewide registry would improve transparency and enforcement, while the optional tax could generate revenue to address housing shortages and other impacts tied to STRs.
The Connecticut Lodging Association also supports the bill, saying it would help level the playing field between hotels and STR operators. “Hotels and other lodging providers are subject to extensive regulations and taxes, while short-term rentals are not always held to the same standards,” the group said in testimony.
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Opponents warn the measure could discourage tourism and burden property owners. STR host Karen Etchells said the proposal adds “unnecessary bureaucracy” and increases costs for owners who already collect and remit taxes through booking platforms. She cautioned higher lodging costs could push visitors to other states.
The Connecticut Business & Industry Association also opposes the bill, arguing it would create a fragmented tax structure. CBIA said allowing municipalities to set varying rates would complicate compliance and “distort competition” across the lodging sector.
The Department of Revenue Services raised concerns about implementation, saying the bill would impose new enforcement responsibilities and administrative costs without directly addressing housing issues.
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