OLR Bill Analysis

sHB 5189

AN ACT CONCERNING A LOCAL OPTION TO IMPOSE A LODGING OCCUPANCY TAX.

SUMMARY:

This bill allows the legislative body of a municipality to adopt an ordinance to impose a 1% tax on the gross receipts from sales by any hotel or lodging house located within the municipality's boundaries. A municipality is a town, city or borough, consolidated town and city, or consolidated town and borough. The bill appears to apply to all taxable sales by a hotel or lodging house, including such things as food and beverages. The bill requires the revenue services commissioner and a municipality that imposes the tax to enter into a memorandum of understanding to facilitate the tax's collection and its payment to the municipality.

EFFECTIVE DATE: July 1, 2009, and applicable to sales occurring on and after July 1, 2009.

COMMITTEE ACTION

Planning and Development Committee

Joint Favorable Substitute