summary
Introduced
02/02/2026
02/02/2026
In Committee
02/10/2026
02/10/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Hotel Operators' Occupation Tax Act. Imposes a tax upon hosting platforms that facilitate the renting, leasing, or letting of short-term rentals. Provides that the tax is imposed at the rate of 4% of 94% of the gross rental receipts received by the platform from the renting, leasing, or letting of short-term rentals in this State. Provides that the proceeds from the tax shall be deposited into the Community Land Trust Fund. Amends the State Finance Act to create the Community Land Trust Fund. Amends the Property Tax Code. Provides that property that is owned by a non-profit community land trust and that is used exclusively for the creation and maintenance of permanently affordable single-family or multifamily residences is exempt beginning with the taxable year in which the property is acquired by the community land trust and continuing through the taxable year in which the property is sold to a homeowner. Effective immediately.
AI Summary
This bill imposes a new 4% tax on gross rental receipts from short-term rentals, meaning furnished accommodations rented for less than 30 days that are not considered traditional hotels, collected by hosting platforms that facilitate these rentals, with the revenue directed to a newly created Community Land Trust Fund. This fund will be used by the Illinois Housing Development Authority for programs supporting community land trusts, which are non-profit organizations dedicated to creating and maintaining permanently affordable housing. Additionally, property owned by these non-profit community land trusts and used exclusively for developing affordable residences will be exempt from property taxes from the time of acquisition until it is sold to a homeowner, starting in the 2027 tax year.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Added as Co-Sponsor Sen. David Koehler (on 02/18/2026)
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