FY 2026-33, Hotel Operators’ Occupation Tax Changes, Effective July 1, 2026

FY 2026-33, Hotel Operators' Occupation Tax Changes, Effective July 1, 2026

Illinois statutes have been updated to clarify the definition of and related reporting requirements for hotel operators.

Beginning July 1, 2026,

• The 200-transaction threshold for requiring re-renters of hotel rooms to collect and pay hotel operators' occupation tax will be removed.
• If the renting, leasing, or letting of a hotel room is done through a hotel marketplace facilitator that has met the $100,000 tax remittance threshold discussed below, then the hotel marketplace facilitator is the hotel operator and must register for a Hotel Operators' Occupation Tax Account with the Illinois Department of Revenue (IDOR).
• "Hotel marketplace facilitator" includes re-renters of hotel rooms (see definition below) and hosting platforms for short-term rentals who otherwise meet the definition of "hotel marketplace facilitator."

See Public Act 104-0468.

See Informational Bulletin FY 2026-33, Hotel Operators' Occupational Tax Changes, Effective July 1, 2026, for more information.