SB2564 Summary

• Creates the Short-Term Rental Occupation Tax Act imposing two state taxes on short-term rental transactions: 5% and 1% of 94% of gross rental receipts, collected by hosting platforms.

• Requires short-term rental operators to obtain state business licenses from the Department of Revenue and provide evidence of local compliance before operating; operators must display license numbers on all listings and advertisements.

• Mandates hosting platforms register with the Department of Revenue, collect and remit taxes monthly, maintain detailed transaction records, and obtain operator consent for information disclosure; violations subject to fines up to $1,000 per offense and license suspension/revocation.

• Amends Hotel Operators' Occupation Tax Act to require re-renters of hotel rooms meeting revenue thresholds ($100,000 cumulative or 200+ transactions annually) to collect and remit hotel occupancy taxes; allows re-renters tax credits for amounts paid to hotel operators.

• Modifies county and municipal tax codes to extend local hotel tax authority to short-term rentals; effective January 1, 2024.