State of Illinois
2019 and 2020


Introduced , by Rep. Michael J. Zalewski


New Act

    Creates the Short-Term Rental Act. Provides that units of local government may not enact or enforce an ordinance, regulation, or plan that has the express or practical effect of prohibiting short-term rentals. Restricts the use of or regulation of short-term rentals based on their classification, use, or occupancy. Allows the regulation of short-term rentals to protect public health, safety, sanitation, traffic control, solid or hazardous waste control, pollution control, and other specified circumstances. Requires short-term rental platforms to apply, calculate, collect, and remit taxes imposed on the owner or occupant of a short-term rental. Defines terms. Limits home rule powers. Effective immediately.

LRB101 06241 AWJ 51267 b






HB2919LRB101 06241 AWJ 51267 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Short-Term Rental Act.
6    Section 5. Purpose. The purpose of this Act is to promote
7access to short-term rentals by limiting local governmental
8authority to prohibit these beneficial property uses or to
9specifically target them for regulation except in
10circumstances necessary to safeguard public health and welfare
11and to promote property owners access to platforms for offering
12their properties as short-term rentals and enhancing local tax
13revenue by requiring platforms to assume tax collection and
14remittance responsibilities.
15    Section 10. Definitions. As used in this Act:
16    "Short-term rental" means a single-family dwelling, or a
17residential dwelling unit in a multi-unit structure,
18condominium, cooperative, timeshare, or similar joint property
19ownership arrangement that is rented for a fee for less than 30
20consecutive days. "Short-term rental" includes vacation
21rentals. "Short-term rental" does not include: (a) a unit that
22is used for any non-residential purpose, including



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1educational, health care, retail, restaurant, banquet space,
2event center, or another similar uses; (b) a bed and breakfast
3establishment as defined in Section 2 of the Bed and Breakfast
4Act; or (c) transient accommodations, including hotels and
5motels that are not classified as residential property for real
6property taxation purposes.
7    "Short-term rental marketplace" means a platform through
8which the owner or authorized agent of the owner of a
9single-family dwelling or residential dwelling unit offers a
10short-term rental to an occupant.
11    "Unit of local government" has the meaning given to that
12term in Section 1 of Article VII of the Illinois Constitution.
13    Section 15. Limitations in short-term rentals.
14    (a) A unit of local government may not:
15        (1) enact or enforce an ordinance, regulation, or plan
16    that has the express or practical effect of prohibiting
17    short-term rentals;
18        (2) restrict the use of or regulate short-term rentals
19    based on their classification, use, or occupancy; or
20        (3) regulate the operation of a short-term rental
21    marketplace except as provided for in Section 20.
22    (b) Notwithstanding the limitations in subsection (a), a
23unit of local government may enact and enforce an ordinance,
24regulation, or plan that regulates short-term rentals based on
25their classification, use, or occupancy if the unit of local



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2        (1) demonstrates that the ordinance, regulation, or
3    plan is necessary to achieve a primary purpose of
4    protecting public health and safety, including fire and
5    building codes, health and sanitation, traffic control,
6    and solid or hazardous waste and pollution control;
7        (2) limits or prohibits the use of short-term rentals
8    by sex offenders; in the commission of criminal offenses;
9    for the selling of drugs, liquor, pornography, or obscene
10    materials; for topless dancing or other adult-oriented
11    businesses; or for any commercial purpose of the occupant
12    of the short-term rental; or
13        (3) applies sales taxes and fees to short-term rentals
14    at the same rate and on the same tax base as equivalent
15    taxes and fees applied to commercial transient lodgings,
16    such as hotels, within the taxing jurisdiction.
17    Section 20. Taxes imposed on owner or occupant. A
18short-term rental marketplace shall apply, calculate, collect,
19and remit taxes imposed on the owner or occupant of a
20short-term rental.
21    Section 25. Home rule limitation. A home rule unit may not
22regulate short-term rentals or short-term rental marketplaces
23in a manner inconsistent with this Act. This Section is a
24limitation under subsection (i) of Section 6 of Article VII of



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1the Illinois Constitution on the concurrent exercise by home
2rule units of powers and functions exercised by the State.
3    Section 99. Effective date. This Act takes effect upon
4becoming law.