SB3498 - Short-Term Rental Occupation Tax Act Summary

• Creates a new Short-Term Rental Occupation Tax Act imposing a 5% tax plus an additional 1% tax on 94% of gross rental receipts from short-term rental transactions facilitated by hosting platforms in Illinois.

• Requires short-term rental operators to obtain state business licenses from the Department of Revenue and display license numbers on all advertisements and listings; hosting platforms must register with the Department and obtain operator consent to disclose required information.

• Mandates hosting platforms to assess, collect, and remit taxes to the Department; maintain detailed records of all booking transactions; and submit monthly reports including operator names, addresses, rental periods, and itemized charges.

• Exempts short-term rentals from taxation if operated by religious or charitable organizations with active exemption identification numbers, and excludes permanent resident occupancy (30+ consecutive days) from the tax base.

• Establishes criminal penalties for non-compliance, including Class 3 and Class 4 felonies for failure to file returns, fraudulent returns, unlawful facilitation of bookings, and improper tax collection; amends the Freedom of Information Act to protect confidential short-term rental tax information from public disclosure.