Executive Summary

• Are short-term rentals allowed in Sharon, CT? Yes, short-term rentals are allowed. As of December 2023, the Town of Sharon has no town-specific short-term rental ordinance, and therefore no town-level registration, permit, or license is required to operate an STR. You must comply with all applicable state and local laws (e.g., building, health, safety, noise, zoning, and tax obligations). Sources confirm that Sharon’s published ordinances do not include an STR-specific bylaw. There is a Massachusetts draft by-law referencing STR rules in the provided materials; that draft does not apply in Connecticut.

How to Start a Short-Term Rental Business in Sharon, CT

• Confirm zoning eligibility for the property (residential use district and any HOA/condo restrictions). Contact the Planning & Zoning Commission to verify allowed uses in your district and any building, health, or fire code requirements that apply to the use.
• Establish business registration and tax compliance at the state level:
  • Register for a Connecticut Sales and Use Tax Permit if you will collect sales and occupancy taxes. STRs are generally subject to Connecticut sales tax and the state’s Room Occupancy Tax for lodging businesses.
  • Obtain any other state tax accounts as required (e.g., business entity registration with the Secretary of the State if applicable).
• Prepare and post required information and safety measures:
  • Ensure functional smoke detectors and carbon monoxide alarms.
  • Maintain fire extinguishers on each floor as required by local fire code (and per best practice for STR safety).
  • Follow state/local noise and public health regulations.
  • Confirm adequate parking and trash removal arrangements (no local STR parking standard exists; comply with general traffic and parking rules).
• Market your listing with your required tax registration numbers (see “Required documents, permits, licenses, and guidelines” below).

Required Documents, Permes, Licenses, and Guidelines

• State-level business and tax filings
  • Connecticut Sales and Use Tax Permit: to collect sales tax on the rental and the Connecticut Room Occupancy Tax. Connecticut permits can be obtained via the Department of Revenue Services (DRS) website or by calling DRS.
• Health, safety, and building compliance
  • Comply with Connecticut Building Code, Fire Code, and local health ordinances. While Sharon has no STR-specific by-law, the town’s general ordinances and health rules remain enforceable.
• Posting and occupant information
  • Post emergency contact details and basic safety information in the unit.
  • Provide a clear diagram of fire extinguisher locations and evacuation routes; display this information conspicuously.
  • Provide trash removal schedule and noise restrictions to occupants.
• Occupancy and use
  • No local STR occupancy cap exists; use the statewide public safety and building code limits as your baseline. Do not host commercial meetings or events in the STR.
• Recordkeeping (recommended)
  • Maintain an occupancy register for at least two years (recommended best practice; required in many Connecticut municipalities with STR ordinances, but not in Sharon currently).

Specific Regulations (City, County, State)

• Municipal (Sharon, CT)
  • No STR-specific ordinance or licensing program is currently in force. The town’s ordinances list (December 2023) does not include an STR bylaw. All existing ordinances (noise, parking, health, zoning, etc.) still apply to STR operations and occupants.
• County-level
  • No county-specific STR requirements beyond state law and municipal ordinances.
• State-level (Connecticut)
  • Sales tax applies to short-term rental charges. The state’s Room Occupancy Tax applies to lodging businesses, including many short-term rentals. Investors must register and remit through DRS. Consumers are generally charged 6.35% sales tax on the lodging transaction and any required occupancy tax. Occupancy tax rates and local surcharges, if any, are set by statute and administered by the DRS.
• Note on nonapplicability of out-of-state materials
  • The Massachusetts draft by-law referencing “short-term rentals” provided in your sources is not applicable in Connecticut. Always rely on Connecticut statutes and the Town of Sharon’s ordinances.

Contact Information (Local Authority)

• Town Clerk – General information and municipal records
  • Phone: 860-364-1554
  • Address: Sharon Town Hall, 63 Main Street, Sharon, CT 06069
  • Website: sharonct.gov
• Board of Selectmen – General governance and ordinance inquiries
  • Phone: 860-364-1526
  • Email: selectmen@sharonct.gov
  • Website: sharonct.gov
• Planning & Zoning Commission – Zoning compliance
  • Phone: 860-364-1526
  • Website: sharonct.gov (Planning & Zoning page)
• Building Department – Building code and safety compliance
  • Phone: 860-364-1526
  • Website: sharonct.gov (Building Department page)
• Housatonic Valley Health District – Local public health rules
  • Website: hvhd.org
  • Phone: Typically accessible via hvhd.org contact listing
• State of Connecticut
  • Department of Revenue Services (DRS) – Sales tax, Room Occupancy Tax, business tax registration
    • Website: portal.ct.gov/DRS
    • Phone: 860-297-5962
• Emergency
  • Police/Fire/EMS: 911
  • Sharon Police Department (non-emergency)
    • Phone: 860-364-9033

Links to Source Pages

• Town of Sharon Ordinances (December 2023)
  • sharonct.gov/309/Town-Ordinances-PDF
• Reference to a draft by-law (non-Connecticut; out-of-state)
  • www.townofsharon.net/sites/g/files/vyhlif3801/f/pages/attachment_d_short-term_rental_by-law_article_28.pdf

Practical Notes for STR Investors

• Monitor future action by the Town of Sharon. While no STR by-law exists now, the Board of Selectmen could adopt one. Watch the Town Ordinances PDF and the Selectmen’s meeting materials for updates.
• State tax compliance is non-negotiable. Register with DRS, collect sales and occupancy taxes, and file remittances on schedule. State penalties can be severe for non-compliance.
• Property governance matters. If the property is in a condominium or HOA, STRs may be prohibited or restricted by the association’s governing documents. Obtain written confirmation and a copy of the condo or HOA agreement before listing.
• Safety and neighbor relations. Post safety diagrams, conduct a fire safety walkthrough, and implement quiet-hours and parking management rules consistent with general municipal noise and traffic ordinances.
• Local health and environment. Ensure trash removal and septic/sewer compliance. Sharon’s Recycling Ordinance and general health rules apply to occupants and operators alike.

If you need a complete state tax compliance checklist tailored to Connecticut STRs, I can provide a focused outline in a follow-up.