SPRINGFIELD – Short-term rentals booked through platforms like Airbab and Vrbo could soon cost a little more under legislation advancing in Springfield that would create a new statewide tax on stays shorter than 30 days.
House Bill 5776, filed this week by a Chicago Democrat, would impose a 4% excise tax on short-term rentals across Illinois, with the money dedicated to a new Community Land Trust Fund to support affordable housing initiatives. The bill applies to rentals of fewer than 30 consecutive days and would take effect once it becomes law, with tax collections starting Jan. 1, 2027.
State Representative David Friess of Red Bud says at the beginning of the year, Illinois Democrats made “affordability” their central theme, yet they continue to drive more people away with ever-increasing taxes.
The representative ended his comments by saying “the tax and spend mentality must end.”
The tax would be paid by renters, similar to a hotel tax, but collected and sent to the state by the short-term rental operators or online booking platforms.