Bill > SB1749

This bill introduces the Short-Term Rental Occupation Tax Act, which establishes a comprehensive regulatory framework for short-term rental platforms and operators in Illinois. The bill imposes two separate taxes on short-term rental transactions: a 5% tax and a 1% tax, both calculated on 94% of the gross rental receipts. Operators of short-term rentals must obtain a business license from the Department of Revenue and display this license on all advertisements and within the rental property. Hosting platforms are required to register with the state, collect and remit taxes, maintain detailed records of rental transactions, and ensure that all short-term rentals they list are legally registered and comply with local regulations. The bill includes provisions for record-keeping, reporting, and penalties for non-compliance, with potential fines and criminal charges for serious violations. Local governments are permitted to adopt additional ordinances regulating short-term rentals, provided they are not less stringent than the state law. The tax revenue collected will be used to promote tourism and attract visitors, and the bill includes safeguards to protect confidential information and ensure fair implementation. The act is set to take effect on January 1, 2026, and applies to short-term rentals across Illinois, with specific exemptions for certain types of accommodations such as dormitories, healthcare facilities, and senior housing.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1749&GAID=18&DocTypeID=SB&SessionID=114&GA=104