Illinois Proposes 4% Tax on STRs

5/20/2026

Illinois lawmakers have introduced legislation that would impose a 4% surcharge on short-term rental bookings and direct the revenue to a Community Land Trust Fund aimed at expanding affordable housing. The proposals, led by Rep. Will Guzzardi and a companion Senate bill, would apply the tax to stays under 30 days and shift much of the collection burden from individual hosts to large booking platforms. Under the House version, platforms exceeding $100,000 in annual Illinois bookings would be required to collect and remit the tax starting in 2027, while smaller operators would file directly. Critics warn the proposal could raise costs for travelers and reduce host participation.

Hoodline (05/19/26) Richard M. Sullivan