IL HB2663

Creates the 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 (such as Airbnb-style services), effective January 1, 2026

Requires short-term rental operators to obtain a business license from the Department of Revenue before operating, with license numbers displayed on all advertisements and physically within the rental property

Hosting platforms must register with the Department, collect and remit taxes, maintain detailed monthly reports on all transactions (including operator names, addresses, rental periods, and amounts collected), and remove listings within 3 business days if notified of invalid licenses

Exempts religious or charitable organizations with valid exemption IDs, rentals of 30+ consecutive days, school dormitories, licensed healthcare facilities, senior housing, migrant labor camps, and traditional hotels (which remain subject to the existing Hotel Operators' Occupation Tax Act)

Violations carry fines up to $1,000 per offense for hosting platforms, and criminal penalties (Class 4 felony for amounts under $300, Class 3 felony for $300+) for fraudulent returns, failure to keep records, or failure to remit collected taxes