Resource Page for Hotel Operators' Occupation Tax

Effective July 1, 2023, qualifying entities providing disaster relief are exempt from paying Hotel Operators’ Occupation Tax on gross rental receipts for rooms (Public Act 103-9).

To qualify, such organizations must

be organized and operated exclusively by an organization chartered by the United States Congress to provide disaster relief, and
possess an active Illinois Exemption Identification Number issued by the Illinois Department of Revenue (IDOR).

Effective July 1, 2024, persons engaged in the business of re-renting hotel rooms are subject to Hotel Operators’ Occupation Tax on the receipts from those rentals (Public Act 103-592).

“Re-renters of hotel rooms” are persons who are not employed by a hotel operator but who, either directly or indirectly, through agreements or arrangements with third parties collect or process the payment of rent from a guest of a hotel for a hotel room located in Illinois and either

obtain the right or authority to grant control of, access to, or occupancy of a hotel room in Illinois to a guest of the hotel; or
facilitate the booking of a hotel room located in Illinois.

Persons who obtain those rights or authorities are not considered re-renters of hotel rooms if they operate under a shared hotel brand with the operator.

Note: “Re-renters of hotel rooms” do not include hosting platforms for short-term rentals of owner-occupied, tenant-occupied, or non-owner-occupied dwellings.