Chamber Testimony: Support of Raised Bill 7238

Chamber of Commerce of Eastern Connecticut

92 Eugene O’Neill Drive

New London, CT 06320

March 24, 2025

Senator John Fonfara, Co-Chair
Representative Maria Horn, Co-Chair
Finance, Revenue and Bonding Committee
Connecticut General Assembly
Legislative Office Building
Hartford, CT 06106

Subject: Support for Raised Bill No. 7238 – Establishing a Short-Term Rental Registry and Authorizing an Optional Municipal Supplemental Tax

Dear Senator Fonfara, Representative Horn, and Members of the Finance, Revenue and Bonding Committee,

I am writing to you as the President & CEO of the Chamber of Commerce of Eastern Connecticut to express our strong support for Raised Bill No. 7238. This important legislation seeks to establish a statewide short-term rental (STR) registry and authorize municipalities to impose an optional supplemental tax on STRs. We believe this bill is essential for fostering a fair, transparent, and safe lodging market across Connecticut.

Our region, as the hub of tourism in Connecticut, is home to mnay businesses in the hospitality sector that are currently facing an uneven playing field. While hotels and inns strictly adhere to health, safety, and taxation regulations, short-term rental operators have largely remained outside these regulatory bounds. This discrepancy not only puts traditional lodging establishments at a disadvantage but also compromises guest safety and community well-being.

Key benefits of this legislation include:

• Fair Competition: Hotels, inns, and bed & breakfasts must adhere to state and local regulations, pay occupancy and sales taxes, and comply with health and safety codes. A statewide STR registry will ensure all operators follow similar standards, preventing unfair competition.
• Revenue Generation for Connecticut: The proposed municipal supplemental tax would allow communities to recoup revenue lost to the expanding STR market, helping fund local infrastructure, tourism, and public safety efforts.
• Consumer Protection & Public Safety: Registered STRs would be traceable and accountable, ensuring that guests receive safe accommodations that meet established standards. Currently, many STRs operate in unregulated environments without adequate fire safety measures, insurance, or zoning compliance.
• Community Stability: The unregulated growth of STRs in residential areas has contributed to housing shortages and disrupted neighborhoods. A registry will help municipalities monitor and manage the impact of STRs on local housing markets.

This legislation is a pivotal step toward modernizing our lodging industry regulations, ensuring tax fairness, and safeguarding both consumers and the integrity of our residential areas. We strongly urge you to pass Raised Bill No. 7238 and support our concerted efforts to create a more equitable, competitive hospitality sector.

Thank you for considering our views on this vital issue. Please do not hesitate to contact me if you have any questions or require further input from Connecticut’s business community.

Sincerely,

Tony Sheridan

President and CEO

Chamber of Commerce of Eastern Connecticut 

92 Eugene O’Neill Drive

New London, CT 06320

tsheridan@chamberect.com

(860) 701-9113