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SB 2430

Counties and municipalities; prohibit use of automated recording equipment to track motor vehicle liability insurance.

2025 Regular Session Introduced by Mike Seymour

Expands Illinois Hotel Operators' Occupation Tax to cover short-term rentals from Jan 2026, with hosts or hosting platforms responsible for collection and remittance.

Died In Committee
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Bill Summary · SB 2430

SB 2430 — Summary (Hotel Operators' Occupation Tax; short‑term rentals)

Status: Died in committee (per provided metadata)
Bill filed/introduced: February 7, 2025 (sponsor: Sen. Cristina Castro). Companion: HB 127.

Note on document discrepancy: the bill text provided amends the Hotel Operators' Occupation Tax Act to cover short‑term rentals. The title you supplied (about automated recording equipment and motor vehicle insurance) does not match the bill text; this summary follows the bill text.

Purpose / intent

To expand Illinois' Hotel Operators' Occupation Tax to apply to short‑term rentals and to specify who is responsible for paying/collecting the tax (short‑term rental unit providers vs. marketplaces), with the change to take effect starting January 2026.

Key provisions

  • Amends the Hotel Operators' Occupation Tax Act (35 ILCS 145/2 and 145/3) by adding definitions and by treating short‑term rentals as taxable activity under the Act beginning January 2026.
  • Adds or clarifies definitions used for the Act, including:
    • "Short‑term rental" — non‑owner‑occupied dwelling (apartment, house, cottage, condominium, etc.) rented for less than 30 consecutive days, reserved in advance.
    • "Hosting platform" / "short‑term rental marketplace" — online application, software, website, or system that advertises short‑term rentals for compensation.
    • "Short‑term rental unit provider" — person or entity offering a short‑term rental through a marketplace.
  • Tax incidence:
    • The Act’s tax is imposed on short‑term rentals beginning January 2026.
    • The tax is generally paid by the short‑term rental unit provider, except where the short‑term rental is secured through a short‑term rental marketplace that meets specified thresholds (text truncated in provided document).
  • Existing rate structure retained in the text excerpt: references to the hotel operator tax at 5% (and an additional 1% under a separate subsection) of a specified share (94%) of gross rental receipts remain in the bill text. The bill appears to fold short‑term rental gross receipts into existing gross receipts definitions/exclusions (e.g., permanent residents).
  • The bill references rules used for identifying when a re‑renter/platform becomes the operator for tax purposes (existing thresholds appear in the Act: $100,000 cumulative Illinois receipts or 200 transactions over 12 months, determined quarterly).

Who is affected

  • Short‑term rental unit providers (hosts/property owners) — new tax obligation and/or increased compliance.
  • Short‑term rental marketplaces/hosting platforms — potentially responsible for tax collection/remittance if they meet statutory thresholds (exact threshold mechanics are referenced but truncated in the provided excerpt).
  • Guests may see pass‑throughs of the tax in rental prices.
  • Local and state tax administrators (Department of Revenue) — administration, compliance, and enforcement.

Timeline and procedural notes

  • Bill text states the tax change applies beginning January 2026 and that the act is "effective immediately" (likely referring to the amendment's effective date clause).
  • Legislative activity (public hearing, testimony, left pending) occurred in spring 2025; metadata indicates the bill ultimately died in committee.
  • Because portions of the bill text were truncated in the provided materials, consult the full enrolled/introduced text for exact thresholds, exemptions, and collection mechanics.

Compiled from official sources — confirm details with the bill’s official record.

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