Illinois General Assembly - Full Text of SB1735
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Full Text of SB1735  100th General Assembly




State of Illinois
2017 and 2018


Introduced 2/9/2017, by Sen. Antonio Muñoz


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. 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.

LRB100 08228 AWJ 18328 b






SB1735LRB100 08228 AWJ 18328 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 permitting 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. Short-term rental marketplaces. The following
18apply 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
10regulate short-term rentals or short-term rental marketplaces
11in a manner inconsistent with this Act. This Section is a
12limitation under subsection (i) of Section 6 of Article VII of
13the Illinois Constitution on the concurrent exercise by home
14rule units of powers and functions exercised by the State.
15    Section 99. Effective date. This Act takes effect upon
16becoming law.