Full Text of SB1735 100th General Assembly
SB1735 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB1735 Introduced 2/9/2017, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED: |
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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. Provides that a unit of local government may not tax a short-term rental marketplace or require them to collect taxes from occupants, but the short-term rental marketplace may voluntarily apply, calculate, collect and remit any tax imposed by the unit of local government on the owner or occupant of a short-term rental. Limits home rule powers. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOME RULE NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB1735 | | LRB100 08228 AWJ 18328 b |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Short-Term Rental Act. | 6 | | Section 5. Purpose. The purpose of this Act is to promote | 7 | | access to short-term rentals by limiting local governmental | 8 | | authority to prohibit these beneficial property uses or to | 9 | | specifically target them for regulation except in | 10 | | circumstances necessary to safeguard public health and welfare | 11 | | and to promote property owners access to platforms for offering | 12 | | their properties as short-term rentals and enhancing local tax | 13 | | revenue by permitting platforms to assume tax collection and | 14 | | remittance responsibilities. | 15 | | Section 10. Definitions. As used in this Act: | 16 | | "Short-term rental" means a single-family dwelling, or a | 17 | | residential dwelling unit in a multi-unit structure, | 18 | | condominium, cooperative, timeshare, or similar joint property | 19 | | ownership arrangement that is rented for a fee for less than 30 | 20 | | consecutive days. "Short-term rental" includes vacation | 21 | | rentals. "Short-term rental" does not include: (a) a unit that | 22 | | is used for any non-residential purpose, including |
| | | SB1735 | - 2 - | LRB100 08228 AWJ 18328 b |
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| 1 | | educational, health care, retail, restaurant, banquet space, | 2 | | event center, or another similar uses; (b) a bed and breakfast | 3 | | establishment as defined in Section 2 of the Bed and Breakfast | 4 | | Act; or (c) transient accommodations, including hotels and | 5 | | motels that are not classified as residential property for real | 6 | | property taxation purposes. | 7 | | "Short-term rental marketplace" means a platform through | 8 | | which the owner or authorized agent of the owner of a | 9 | | single-family dwelling or residential dwelling unit offers a | 10 | | short-term rental to an occupant. | 11 | | "Unit of local government" has the meaning given to that | 12 | | term 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 | 23 | | unit of local government may enact and enforce an ordinance, | 24 | | regulation, or plan that regulates short-term rentals based on | 25 | | their classification, use, or occupancy if the unit of local |
| | | SB1735 | - 3 - | LRB100 08228 AWJ 18328 b |
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| 1 | | government: | 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. Short-term rental marketplaces. The following | 18 | | apply to short-term rental marketplaces: | 19 | | (1) A unit of local government may not levy a sales, | 20 | | use, franchise, receipts, or other similar tax or fee on | 21 | | the business of operating a short-term rental marketplace. | 22 | | (2) A unit of local government may not require that a | 23 | | short-term rental marketplace apply, calculate, collect, | 24 | | or remit taxes imposed on the owner or occupant of a | 25 | | short-term rental. |
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| 1 | | (3) Notwithstanding the limitation in paragraphs (1) | 2 | | and (2) of this subsection, if authorized by the unit of | 3 | | local government, a short-term rental marketplace may | 4 | | voluntarily apply, calculate, collect, or remit any tax | 5 | | imposed by the unit of local government on the owner or | 6 | | occupant of a short-term rental. Undertaking these | 7 | | activities does not impose a continuing obligation or tax | 8 | | liability on the short-term marketplace. | 9 | | Section 25. Home rule limitation. A home rule unit may not | 10 | | regulate short-term rentals or short-term rental marketplaces | 11 | | in a manner inconsistent with this Act. This Section is a | 12 | | limitation under subsection (i) of Section 6 of Article VII of | 13 | | the Illinois Constitution on the concurrent exercise by home | 14 | | rule units of powers and functions exercised by the State.
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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