IL SB1749

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 (e.g., Airbnb, VRBO)

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

Mandates hosting platforms register with the Department of Revenue, collect and remit taxes, maintain detailed monthly transaction records for at least 3 years, and obtain written consent from operators for information disclosure

Establishes penalties including fines up to $1,000 per offense for platform violations, Class 4 felony for amounts due under $300, and Class 3 felony for amounts $300 or more for fraudulent returns or failure to remit taxes

Amends the Counties Code and Illinois Municipal Code to allow local governments to impose similar taxes on short-term rentals as currently authorized for hotels, effective January 1, 2026