HB5146 Summary: Short-Term Rental Occupation Tax Act

• Creates a new state tax on short-term rental transactions facilitated by hosting platforms (like Airbnb), imposing a 5% tax plus an additional 1% tax on 94% of gross rental receipts from each booking transaction.

• Requires hosting platforms to register with the Department of Revenue, collect and remit taxes monthly, maintain detailed records of all transactions, and obtain written consent from operators before disclosing operator information.

• Mandates short-term rental operators obtain a state business license from the Department of Revenue and display the license number on all advertisements and within the rental property; hosting platforms must remove unlicensed listings within 3 business days of notice.

• Exempts transactions by religious or charitable organizations with active Exemption Identification Numbers, and establishes penalties including fines up to $1,000 per violation and potential Class 3 or 4 felonies for non-compliance based on tax amounts owed.

• Makes conforming amendments to the Counties Code and Illinois Municipal Code to allow counties and municipalities to impose their own taxes on short-term rentals and to coordinate with the state tax framework.