Connecticut Lodging Association Legislative Bulletin

Connecticut Legislative Update

ALERT: Occupancy Tax Increase to 17% On 2/20/19 Governor Lamont released his budget recommendations. This budget included a 17% occupancy tax increase. While the occupancy tax was increased, the Governor's budget recommendations failed to increase tourism funding, meaning this 2% increase would go the general fund. This is a #1 priority for CLA. Your testimony and personal input on why this increase is damaging to the lodging industry will be needed. We will keep you informed on when action is necessary. In the meantime, if you have a personal relationship with your legislators, tell them why this increase is destructive to hospitality. CLICK HERE for information and talking points about occupancy taxes.

Upcoming Public Hearings: Monday March 4th at 12:00 P.M. in Room 2E of the LOB: Finance, Revenue and Bonding Committee   HB_5407 - An Act Establishing A Tax Credit For Employers That Provide Paid Family And Medical Leave Benefits And A Family And Medical Leave Accounts Program Please email written testimony in Word or PDF format to FINtestimony@cga.ct.gov. CLA Action: HB 7148 An act concerning the state budget. To implement the Governor's budget recommendations. Includes Tourism Fund allocating only $4.3 million to statewide marketing. Referred to Joint Committee on Appropriations. Public Hearing was 2/27/19. CLA sent opposing testimony. HB 6360 An act establishing an annual tourism incentive grant in which each municipality would receive 50% of the increase generated buy local hotels out of the occupancy tax. Referred to Committee on Commerce, Pubic Hearing was 2/15/19. CLA sent opposing testimony. SB 259 An act concerning the imposition of sales and use taxes on peer-to-peer hospitality services and property rentals. To establish parity in sales and use taxes on short term rentals. Referred to Joint Committee on Finances, Revenue and Bonding Committee. Public Hearing was 2/13/19. CLA sent supporting testimony. CLA Bill Tracker HB 5004 An act increasing the minimum fair wage. Drafted by Committee and Referred to Joint Committee on Labor and Public Employees, 2/27/19. SB 2 An act increasing the minimum fair wage. Drafted by Committee and Referred to Joint Committee on Labor and Public Employees, 2/27/19. SB 64 An act concerning captive audience meetings. To prohibit an employer from coercing employees into attending or participating in meetings sponsored by the employer concerning the employer's views on political or religious matters. Drafted by Committee and Referred to Joint Committee on Labor and Public Employees, 2/27/19. SB 764 An act prohibiting "on-call" shift scheduling. To prohibit the practice of on-call shift scheduling. Drafted by Committee and Referred to Joint Committee on Labor and Public Employees, 2/27/19. To view full CLA Bill Tracker report: PDF | EXCEL TAKE ACTION: Your Voice Matters! Find Your Representative, Senator and Congressperson by Town Testify! A Guide for Reaching State Legislators and Testifying at Hearings

Industry News

Sales tax expansion leaves everyone a bit miffed, ctpost.com Connecticut lawmakers want Airbnb hosts to tell neighbors who is staying over, Connecticut lawmakers are seeking to stiffen regulations on short-term rental services like Airbnb, imposing new taxes and additional requirements for hosts, including state licensing and notifying neighbors who they are renting out their home to. courant.com Time Is Short for Short-Term Rental Regulation, Connecticut needs to take a hard look at developing a statewide statutory and regulatory scheme that appropriately enables short-term rentals while protecting the interests of all the stakeholders. law.com Inside the Rise and Fall of a Multimillion-Dollar Airbnb Scheme, nytimes.com AHLA Launches ‘Hospitality Is Working’ Campaign With $500k In Grants, ahla.com AHLA Praises Bipartisan Agreement Funding Government, ahla.com

AHLA Update

2018 AHLA & AHLEF ANNUAL REPORTS From making hotels safer for employees to building our industry’s workforce, we made a BIG impact in 2018 and we are proud to share it with you.  Download 2018 reports HERE.

HOTEL SAFETY SUMMIT Active AHLA members are invited to attend the Safety Summit. Topics include AHLA 5 Star Promise, How to protect your guests, and ensure preparedness at properties for employees and guests. When: 5/1/2019 | Where: The Conrad Hilton, Washington, DC REGISTER HERE

Economic Policy Institute: The economic costs and benefits of Airbnb No reason for local policymakers to let Airbnb bypass tax or regulatory obligations. In our cost-benefit analysis, we find: Because Airbnb is clearly a business competing with hotel lodging, it should be subject to the same taxation regime as hotels. The economic costs Airbnb imposes likely outweigh the benefits.  Rising housing costs are a key problem for American families, and evidence suggests that the presence of Airbnb raises local housing costs. The potential benefit of increased tourism supporting city economies is much smaller than commonly advertised. The shift from traditional hotels to Airbnb lodging leads to less-reliable tax payments to cities. City residents likely suffer when Airbnb circumvents zoning laws that ban lodging businesses from residential neighborhoods. Download full report HERE. | Economic Policy Institute: epi.org

Issue Update: SHORT TERM RENTALS AirbnbWATCH.com The problem: Commercial landlords are increasingly using short-term rental sites like Airbnb to rent out multiple residential properties year-round, just like a hotel, while avoiding regulation and taxes. And while this may drive huge revenues for companies like Airbnb, unregulated hotels operated in residential properties are disruptive to communities and pose serious safety concerns for guests and neighbors. The solution: We are urging state and local governments to take action to protect communities and ensure a fair travel marketplace by closing the “illegal hotel loophole” by making sure all lodging businesses are playing by the same rules. For more information or to report an abuse in your neighborhood, visit airbnbwatch.org . TAKE ACTION! at HotelACT

The Connecticut Lodging Association is a trade association representing and promoting the lodging industry in Connecticut. Want to know about CLA benefits and membership? Visit us at ctlodging.org/membership

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