HB5776

SHORT-TERM RENTAL TAX ACT

Introduced·5/15/26
Introduced Text

Illinois HB5776 imposes a 4% tax on short-term rentals, with proceeds funding community land trusts.

HB5776, the Short-Term Rental Excise Tax Act, introduces a 4% tax on short-term rentals in Illinois, defined as rentals lasting less than 30 consecutive days. The tax applies to renters, collected by operators or marketplace facilitators. Exemptions include religious entities and disaster relief organizations. The tax revenue funds the Community Land Trust Fund, supporting affordable housing. Operators and facilitators must maintain records and file returns with the Department of Revenue. Penalties apply for non-compliance.

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Where it stands

Current
Rules Committee
Next
Committee decision

Sponsors

DD
2
0
Democratic CaucusRepublican Caucus

History

May 29

House

Added Co-Sponsor Rep. Lilian Jiménez

May 19

House

First Reading

May 19

House

Referred to Rules Committee