Illinois Expands Hotel Tax to Short-Term Rental Platforms Like Airbnb Starting 2025

Illinois will require short-term rental platforms like Airbnb and Vrbo to pay Hotel Operators’ Occupation Tax starting July 1, 2025

Platforms that collect payments and facilitate reservations for Illinois accommodations rented under 30 days are now classified as hotel room re-renters

Businesses with over $100,000 in gross rental receipts or 200+ transactions in Illinois within 12 months must register and file required tax forms

Tax is calculated on the full amount charged to guests but businesses can deduct amounts already paid to hotel operators

The change aims to create tax fairness between traditional hotels and digital platforms while adapting to the modern sharing economy

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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