AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

SB 335 removes an existing exemption that allowed entire residences (like houses, condos, or apartments) to be rented without paying the state's 5% hotel tax. This change affects landlords and property managers who rent out whole properties, requiring them to collect and remit the tax starting January 1, 2026. The bill amends tax code to clarify that such rentals are no longer exempt, aligning them with traditional hotel or short-term rental services. The tax applies in addition to standard sales taxes and will be administered by the state division of taxation.