Illinois HB 5776: SHORT-TERM RENTAL TAX ACT

Bill Text

Full Text of HB5776 

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 Illinois General Assembly

 ILGA.GOV 

 HB5776 - 104th General Assembly 

104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
HB5776

Introduced , by Rep. Will Guzzardi 

SYNOPSIS AS INTRODUCED:

New Act

30 ILCS 105/5.1038 new

30 ILCS 105/6z-149 new

310 ILCS 130/15

 Creates the Short-Term Rental Excise Tax Act. Imposes a tax upon renters of short-term rentals at the rate of 4% of the rental price of those short-term rentals. 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. Provides that moneys in the Community Land Trust Fund shall be used by the Illinois Housing Development Authority for development, staffing, and capacity building and technical assistance related to community land trusts in the State. Amends the Community Land Trust Home Ownership Act. Makes changes to the definition of community land trust. Effective immediately.

LRB104 21738 HLH 37582 b

A BILL FOR

HB5776LRB104 21738 HLH 37582 b

1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois, 

3represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the 

5Short-Term Rental Excise Tax Act.

6 Section 5. Definitions. As used in this Act:

7 "Department" means the Department of Revenue.

8 "Hosting platform" means a person who provides an online 

9application, software, website, or system through which a 

10short-term rental located in this State is advertised or held 

11out to the public as available to rent for occupancy. 

12 "Net revenue realized" means the revenue collected by the 

13State under this Act, less the amount paid out as discounts 

14under Section 40 and refunds to short-term rental operators 

15for overpayment of liability under this Act.

16 "Occupancy" means the use or possession, or the right to 

17the use or possession, of any short-term rental for any 

18purpose or the right to the use or possession of the 

19furnishings or to the services and accommodations accompanying 

20the use and possession of the short-term rental. 

21 "Person" means any natural individual, firm, partnership, 

22association, joint stock company, joint venture, public or 

23private corporation, or limited liability company or any 

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1receiver, executor, trustee, guardian, or other representative 

2appointed by order of any court. 

3 "Renter" means the lessee or tenant of a short-term 

4rental. 

5 "Rental price" means the gross amount of consideration for 

6the occupancy of a short-term rental, valued in money, whether 

7received in money or otherwise, including all receipts, cash, 

8credits, and property or services of any kind or nature. 

9"Rental price" includes any fee, charge, or commission 

10received from a guest by a re-renter of short-term rentals 

11specifically in connection with the re-rental of short-term 

12rentals. 

13 "Re-renter of short-term rentals" means a person who is 

14not employed by the short-term rental operator but who, either 

15directly or indirectly, through agreements or arrangements 

16with third-parties, collects or processes the payment of rent 

17for a short-term rental located in this State and (i) obtains 

18the right or authority to grant control of, access to, or 

19occupancy of a short-term rental in this State to a renter of 

20the short-term rental or (ii) facilitates the booking of a 

21short-term rental in this State. 

22 "Short-term rental" means an owner-occupied, 

23tenant-occupied, or non-owner-occupied dwelling, including, 

24but not limited to, an apartment, house, cottage, or 

25condominium, located in this State, where: (i) at least one 

26room in the dwelling is rented to an occupant for a period of 

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1less than 30 consecutive days; and (ii) all accommodations are 

2reserved in advance; provided, however, that a dwelling shall 

3be considered a single room if rented as such. 

4 "Short-term rental marketplace" means a physical or 

5electronic place, forum, platform, application, or other 

6method by which short-term rental operators rent, lease, or 

7let, or offer to rent, lease, or let, short-term rentals.

8 "Short-term rental marketplace facilitator" means a person 

9who, pursuant to agreements with unrelated third-party 

10short-term rental operators, directly or indirectly through 

11one or more affiliates, facilitates the renting, leasing, or 

12letting of short-term rentals by unrelated third-party 

13short-term rental operators by: 

14 (1) listing or advertising short-term rentals for 

15 rent, lease, or letting by short-term rental operators in 

16 a short-term rental marketplace, the renting, leasing, or 

17 letting of which is subject to tax under this Act; and 

18 (2) collecting, either directly or indirectly, throu