Bill > SB2430

This bill amends the Hotel Operators' Occupation Tax Act to expand the existing hotel tax to include short-term rentals beginning in January 2026. The bill introduces several new definitions, including "short-term rental" (defined as a residential dwelling rented for less than 30 continuous days) and "short-term rental marketplace" (a platform that connects renters with short-term rental properties). Under the new provisions, the 5% tax will be imposed on short-term rentals, with the tax collection responsibility depending on the rental platform's size. Specifically, if a short-term rental marketplace meets either of two thresholds - generating $100,000 or more in rental receipts in Illinois or completing 200 or more separate rental transactions in the state - that marketplace will be responsible for collecting and remitting the tax. If the marketplace does not meet these thresholds, the individual short-term rental unit provider will be responsible for paying the tax. The bill aims to create a more comprehensive taxation approach that includes the growing short-term rental market, ensuring that these rental platforms contribute to state tax revenues similarly to traditional hotel operators.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2430&GAID=18&DocTypeID=SB&SessionID=114&GA=104