# Short-term rental rules in Chicago, IL

- Status: **HEAVILY REGULATED**
- Last checked: 2026-10-02 (claims cite official sources; items we could not verify are listed below)
- Canonical page: https://strwatch.ai/chicago-il/

## Summary

Chicago permits eligible shared housing units and separately licensed vacation rentals for transient occupancy of 31 or fewer consecutive days. Shared housing requires a separate $250 annual registration and assigned number before advertising or booking; hosts of more than one unit also need a $500 two-year operator license. Vacation rentals use a $1,000 two-year regulated business license. Single-family homes and units in two-to-four-unit buildings generally must be the host’s primary residence; two-to-four-unit buildings generally allow one combined shared-housing/vacation-rental unit. In five-plus-unit buildings the combined limit is the lesser of six units or one-quarter of all units. Zoning, restricted residential zones, prohibited buildings and private restrictions affect eligibility. Shared housing generally has a two-night minimum, subject to authorized safety rules. City STR taxes total 10.5%; separate Cook County and IDOR-administered hotel taxes also apply.

## At a glance

- Unhosted whole-home rental: Conditional
- Hosted rental (host present): Conditional
- Primary residence required: Not verified
- Guest cap: none verified
- Rules apply to stays under: not verified

Notes: Primary residence means daily residence at least 245 days in the calendar year; the building-specific rules have active-military, commissioner-adjustment and June 22, 2016 legacy exceptions. Both whole units and portions may be registered; hosts must be natural persons. Shared housing must be a lawful dwelling with six or fewer sleeping rooms in a residential building. Conversion units are prohibited. Coach houses lawfully established after May 1, 2021 are also prohibited; the date condition does not limit the conversion-unit ban. Occupancy may exceed neither two persons per guest room (excluding guests’ children under 18) nor building-code capacity. Shared housing generally requires at least two nights and at most one rental commencing in 48 hours until authorized safety rules permit otherwise; hourly/under-10-hour rentals, more than one rental in 10 hours, overlapping bookings and serving alcohol are prohibited. Whether any current administrative rule relaxes the two-night/48-hour limits is unresolved. The city transient-occupancy definition ends at 31 days, while state/county lodging-tax duration rules differ; no single blanket property/licensing exemption is asserted.

## Requirements

### Shared Housing Unit Registration (registration)

- Authority: Chicago Dept. of Business Affairs and Consumer Protection (BACP)
- Cost: $250 per year
- Renewal: annual
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611567
- Notes: Apply as a natural-person host with identity/residence documentation, unit address/identifier, host or local-contact details, building/unit count, whole-unit versus partial rental, primary-residence status and acceptable evidence, and fee. Application includes zoning, prohibited-building and restricted-zone review. Pending applications do not authorize advertising or booking. Display the assigned number on advertising, listings, agreements and bookings. Update changed application information within ten business days. Registration renews annually and cannot transfer between units or hosts; unresolved city fines can bar approval or renewal.

### Shared Housing Unit Operator License (SHUOL) (license)

- Authority: BACP
- Cost: $500 per 2-year license
- Renewal: 2 years
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611705
- Notes: Sections 4-16-100 and 4-16-200 require this additional license for a host of more than one unit; section 4-5-010 sets the two-year $500 fee. Maintain a local contact authorized for process, remedial action and Code responses, with a city residence or office. Section 4-16-230 authorizes the building commissioner to mandate inspections of operator-run units at least once every two years under rules; this is not stated as an unconditional inspection appointment for every applicant. Submit the local contact's affidavit and prior revocation history; keep application details current and report changes within ten business days (4-16-210). Unlicensed operation and Article II violations carry $1,500–$3,000 per offense per day under 4-16-310 and 4-16-330.

### Vacation Rental License (Regulated Business License) (license)

- Authority: BACP
- Cost: $1,000 per 2-year license
- Renewal: 2 years
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2610323
- Notes: Section 4-6-300(b),(c) expressly identifies vacation rentals as regulated business licenses; the $1,000 general regulated-business fee and default two-year assessment in section 4-5-010(2) therefore apply. A separate license is required for each vacation-rental unit. The application includes owner/building/sleeping-room information, local-contact affidavit, lawful-unit and private-restriction attestations, primary-residence/cap/legacy disclosures, suspension/revocation history and insurance. Vacation rentals can also be listed on platforms; the license is not simply an off-platform-only category. Zoning and current administrative application guidance remain property-specific. Update changed application information as required by 4-4-050(b). Section 4-6-300(f)(13) requires written disclosures of known licensed/ineligible status to prospective tenants or purchasers and a signed acknowledgment. Section 4-6-300(g) also sets the two-night/48-hour rules, absolute hourly/under-ten-hour and overlapping-booking restrictions, no alcohol service, and occupancy limits for vacation rentals, not only shared housing. An initial online application payment of $25 is nonrefundable but credited toward the license fee, not added on top; implementation rules can limit which applications pay it. Annual CPI adjustments begin in January 2027, capped at 2.5% or a lower justified amount; the published 2027 fee is unverified. General application rules in 4-4-050 also require applicable identity, entity, age-18, emergency-contact, assumed-name and zoning details; report changes within ten business days. The vacation-rental cap uses the maximum-limit rounding rule in 17-1-0605-B: round fractional unit counts down.

### Insurance (vacation rental licensees) (insurance)

- Authority: MCC 4-6-300(f)(1)
- Cost: not verified
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2610323
- Notes: Vacation-rental licensees must maintain homeowner’s fire, hazard and liability insurance plus commercial general liability of at least $1 million per occurrence, combined single limit. Policies must be issued by an Illinois-authorized insurer and name Chicago as additional insured on a primary, noncontributory basis throughout the license. Separately, section 4-13-220 requires intermediaries to provide guest liability coverage of at least $1 million per occurrence, with limits applying separately to each rental. No blanket independent shared-housing-host policy requirement is inferred.

### Short Term Residential Rental Intermediary License (platforms, e.g., Airbnb) (license)

- Authority: BACP (MCC 4-13-200)
- Cost: $250-$10,000 per year (tiered by unit count) plus $60 per unit
- Renewal: annual
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611393
- Notes: Platform intermediary obligation under sections 4-13-200 and 4-13-205, not an extra host license. Section 4-5-010 tiers are $250 (1–9), $350 (10–24), $500 (25–49), $1,000 (50–99), $5,000 (100–499), $7,500 (500–999) and $10,000 (1,000+) annually, plus $60 for each listed rental. Providers must successfully register or license their units before advertising or booking; do not rely on a platform to register the unit for you.

### Safety, sanitation, guest records and listing disclosures (other)

- Authority: BACP; MCC 4-14-040 and 4-6-300
- Cost: not verified
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611594
- Notes: Shared housing hosts must maintain compliant smoke/CO alarms, post local-contact name/telephone and an evacuation diagram near the entrance, supply soap and clean linens, sanitize units/utensils between guests and discard previous guests’ food/beverages/alcohol. Keep guest name, contact details, signature and stay dates for three years; compulsory disclosure generally requires lawful process with precompliance review, subject to consent and other exceptions. Listings disclose cancellation/check-in/out, accessibility, parking, amenities, room/bath counts, whole/partial-unit status, occupancy and registration number. Notify/cooperate with police about suspected criminal activity, egregious conditions or public nuisance. Vacation rentals have corresponding duties in 4-6-300(f),(h), including entrance-door evacuation diagram, license posting and three-year guest records. Food provision triggers food-safety rules. Applicable noise, trash and nuisance rules apply; property-specific parking and other building-code requirements must be checked. Both shared-housing and vacation-rental excessive-noise definitions include sound between 8 p.m. and 8 a.m. louder than average conversation 100 feet or more from the property line, qualifying vibrations experienced on neighboring property, and adjacent-public-way noise under 8-32-070(a), subject to stated exceptions (4-14-010 and 4-6-300(a)). Owners and agents must disclose known shared-housing registration or ineligibility in writing before executing a lease or accepting application money, and at an offering for sale, with a signed acknowledgment (4-14-040(d)). Shared housing is a public accommodation subject to the Code's nondiscrimination requirements (4-14-040(c)).

### Commissioner’s adjustment (when an exception is needed) (other)

- Authority: BACP; MCC 4-14-100
- Cost: $360 review fee per written request
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611666
- Notes: May address non-primary single-family/two-to-four-unit rentals or increase the shared-unit count in a two-to-four-unit building. Approval requires extraordinary burden from unique circumstances without detrimental public impacts; it does not waive registration requirements. Submit relevant factors and notify adjoining neighbors. Written determination is due within 60 days; denial hearing may be requested within fourteen days of receipt, followed by decision within thirty days after hearing. Approved plan-of-conduct conditions bind registration. Vacation-rental adjustments under 4-6-300(l) cover non-primary single-family/two-to-four-unit units or added units in two-to-four-unit buildings. A written submission with adjoining-neighbor copies is decided within 60 days; denial hearing requests are due within fourteen days of receipt, with a decision within thirty days after the hearing. Applicant bears the burden of persuasion; plan-of-conduct conditions attach to the license. Its separate fee remains unverified. For shared housing, the host requests the non-primary-residence adjustment; the building owner, HOA or cooperative board requests a higher two-to-four-unit cap. The applicant bears the burden of persuasion.

### Illinois lodging-tax account, returns and supporting records (registration)

- Authority: Illinois Department of Revenue (IDOR)
- Cost: not verified
- Renewal: Monthly unless IDOR assigns quarterly/annual filing; monthly/quarterly due last day of following month, annual due January 31
- Official source: https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/pubs/documents/pub-106.pdf
- Notes: August 2026 Publication 106 requires REG-1/MyTax Illinois registration when liable; mixed/direct bookings or a non-remitting facilitator require host registration and RHM-1 returns, with RHM-7 for multiple locations. Solely qualifying-facilitated hosts need not register under FY2026-33. Registered filers submit signed zero returns even without receipts. Keep facilitated/direct and taxable/exempt receipts separately, exemption proof and facilitator assumption notices/certificates; retain return-supporting records at least 3.5 years from due date or actual filing, whichever is later. Update location/entity information; certificates are nontransferable. Notify closure; applicable business-asset sales/transfers require CBS-1 at least ten days before sale. The certificate has an expiration date; current account fee and renewal mechanics were not independently established, so cost is null.

### Illinois lodging-tax exemptions, adjustments and refunds (other)

- Authority: IDOR
- Cost: not verified
- Official source: https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/pubs/documents/pub-106.pdf
- Notes: Publication 106 exempts a binding right to occupy for at least 30 days, but early termination before 30 days makes the short stay taxable. If duration is still unknown at filing, pay tax then deduct the first-month receipts on the next RHM-1 with a breakdown when the guest reaches 30 days. Refund qualifying permanent-resident tax to the guest on request; IDOR does not refund guests, and unrefunded collections remain payable. Government employment or ordinary school/charity/religious sales-tax certificates do not establish hotel-tax exemption. Valid diplomatic cards and qualifying congressionally chartered disaster-relief organizations have specific documentation rules. Separately identify permitted deductions, including food, telephone, parking/laundry and meeting-room receipts; other sales/use taxes may apply. Extra bedding/facilities and no-show/cancellation/early-departure charges are taxable. Complimentary food may incur use tax. Correct errors/request credits or refunds using RHM-1-X; pay additional tax and applicable penalty/interest. Exact statutory refund limitation, tax appeal route and processing fees remain unverified.

### Cook County hotel-tax registration and returns (registration)

- Authority: Cook County Department of Revenue
- Cost: not verified
- Renewal: Monthly portal returns; precise due date and account renewal unverified
- Official source: https://www.cookcountyil.gov/sites/g/files/ywwepo161/files/documents/2026-01/Hotel%20FAQs.1.14.26.pdf
- Notes: County FAQ requires independent hosts to register and collect/remit tax, while hosts using a facilitator should verify its County registration and collection. County and IDOR accounts are separate. The FAQ treats retained cancellation/no-show charges as taxable and permits refund applications for tax on refunded stays; rewards-paid room portions are not taxed. County federal-agency/diplomatic exemptions differ from the state rules; state/local government stays are taxed. Corporate housing qualifies as permanent residence only when the same occupant stays at least 30 consecutive days. The FAQ's broad General Business License sentence does not override the separate unincorporated-only program scope. Exact County filing/refund/record/appeal deadlines, charges and complete current ordinance remain unresolved.

### Chicago hotel-tax returns, payments and annual adjustments (other)

- Authority: City of Chicago Department of Finance
- Cost: not verified
- Renewal: Annual return due August 15 for the year ending June 30; actual or qualifying estimated payments generally due the 15th after each month/quarter
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2606104
- Notes: File the annual return for the preceding July–June year under 3-24-060(B) and 3-4-186, generally with an annualization schedule. Multiple sites use a consolidated return and separate site schedule. Collect and separately state City tax on the guest bill. Actual tax payments and coupons are due the 15th after the monthly or applicable quarterly period. Annual payment with the return is available only if the prior-year liability was at most $2,400 and the full preceding twelve months were filed and paid directly to the City. Eligible filers may estimate monthly payments at one-twelfth or quarterly payments at one-quarter of prior-year liability: they must meet the full-year filing/payment condition, have prior-year liability no greater than $2 million, and have no three consecutive months accounting for more than 50% of that liability. Estimated payments also fall due the 15th. A business ceasing before June 1 must request forms and file within 45 days after the cessation month. Pay annual shortfalls with applicable interest and penalties. The annual return permits an overpayment refund or future-credit election, but guest collections must first be unconditionally repaid; City debts may offset the balance. Weekend or City-holiday deadlines move to the next eligible day. Separate account charges remain unverified.

### Chicago tax records and business transfers (other)

- Authority: City of Chicago Department of Finance
- Cost: not verified
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2605639
- Notes: Keep original transaction books in English showing rental charges, taxable occupancy, exemptions and deductions; make them available during business hours under 3-4-170 and 3-24-070. A formal demand under 3-4-180 generally allows 45 days from receipt, subject to extension; nonproduction can lead to estimates, subpoenas and daily citations. These sections do not establish a fixed retention term; do not substitute the separate three-year guest register. The ordinary assessment window in 3-4-120 runs four years after the end of the calendar year of filing or due date, whichever is later; no filing or less than 75% payment can add two years. Fraud, unremitted collected taxes and waivers remove that limit; amended returns have separate rules. Under 3-4-140, qualifying business or major-asset transfers require both seller and buyer notices at least 45 days before transfer. Seller returns and payment are due within 30 days afterward. Buyer withholding and successor liability depend on timely City notice and compliance.

### Chicago tax refunds and assessment protests (other)

- Authority: City of Chicago Department of Finance; Department of Administrative Hearings
- Cost: not verified
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2605525
- Notes: Where no specific ordinance overrides it, 3-4-100 requires a written refund/credit application within three years of erroneous payment and bars recovery of guest-borne tax unless unconditionally repaid; other exclusions and City-debt offsets apply. Protest a tentative refund determination within 35 days of receipt. Separately, 3-4-330 requires a written assessment protest stating grounds within 35 days of receipt. A limited late route requires action within 30 days after the Department issues an expired-protest notice and payment under protest of the lesser of tax plus interest or $10,000. A timely protest may be referred to Administrative Hearings; documentary proof is essential under 3-4-340. Optional internal review must be requested within ten business days of receiving the final decision; inaction for ten business days after the petition means denial and skipping this step does not waive judicial review. Judicial record certification costs $0.20 per page, reimbursed if the appellant prevails. The separate court-filing deadline was not verified. Refund interest rules differ: eligible erroneous payments may earn 3% simple interest, but annual-return overpayments under 3-4-186(H) do not.

### Chicago tax interest and penalties (other)

- Authority: City of Chicago Department of Finance; BACP
- Cost: not verified
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2605687
- Notes: Chapter 3-4 applies where consistent with Chapter 3-24. Its default tax interest is 12% annually, simple and calculated daily, with specified audit-extension and post-hearing-delay tolling (3-4-190). Late filing is the greater of 1% of the total return tax (the 1% component is capped at $5,000) or 5% of the amount payable; the alternative late-payment penalty is 5% and does not stack when late filing applies (3-4-200). A return still unfiled when a deficiency notice issues can trigger 25% of total period tax (3-4-210). Negligent or wilful nonpayment can trigger 25% of unpaid tax, excluding the failure-to-file penalty (3-4-220). Knowingly collected but unremitted tax before a deficiency/liability notice can trigger 50% of that amount; this excludes late penalties but can stack with specified no-filing or negligence penalties (3-4-230). Applicable reasonable-cause relief is fact-specific. Section 3-4-310 adds $50–$200 first-offense and $300–$500 repeat-offense fines, daily after actual notice, and possible incarceration for more than three offenses within 180 days. Under 3-4-320, wilful tax or nontax debt can lead to license suspension/revocation after a hearing with at least five days' notice, but full payment within ten days of the order prevents that action.

### Address eligibility, restricted zones and prohibited buildings (other)

- Authority: BACP; Chicago City Clerk
- Cost: not verified
- Official source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611445
- Notes: Check the address against zoning, the City Clerk's restricted residential zones and BACP's prohibited-building list before applying. A restricted-zone ordinance can bar all new rentals or only new non-primary rentals on the covered residential property; its term is four years and renewal requires an ordinance. Properly established rentals may continue under 4-17-070 until nonrenewal or transfer of ownership/tenancy, with proof required from the provider. Do not assume the exception transfers to a buyer. Owners can opt out buildings with five or more units; condominium, cooperative and HOA-governed buildings have no minimum unit count for that opt-out. BACP maintains an owner-removal process by rule, but current administrative instructions were not verified. Private HOA, cooperative and landlord prohibitions still apply. Priority/scofflaw buildings, uncorrected violations and related license suspensions can make a unit ineligible. Vacation rentals properly licensed by June 22, 2016 have a limited zoning grandfather provision; this is not blanket approval of the current property or every other requirement. A complete current district-use matrix, address lists and later uncodified enactments remain unverified.

## Taxes

- **Chicago Hotel Accommodations Tax**: 4.5% of gross rental or leasing charge — applies to Hotel accommodations inside Chicago, including vacation rentals/shared housing. Base includes incidental markups/service/facilitation/cancellation/late-departure charges, excluding imposed taxes and separately stated optional non-accommodation charges. Domicile/permanent-residence, specified nonprofit medical accommodations and licensed B&B exemptions are in 3-24-035. Operators include qualifying facilitators; tax is separately stated and collected from guests. Actual named-platform remittance and administrative permanent-residence interpretation remain unresolved.; platform collects: not verified. Source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2606087
- **Chicago Vacation Rental and Shared Housing Surcharges**: 6% of gross rental or leasing charge (4% housing-services surcharge + 2% domestic-violence surcharge); 10.5% with the city 4.5% tax — applies to Vacation rentals and shared housing units inside Chicago under 3-24-030(B),(C), subject to Chapter 3-24 exemptions. Separate from IDOR-administered Chicago-area hotel taxes.; platform collects: not verified. Source: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2606087
- **Cook County Hotel Accommodations Tax**: 1% of gross rental or leasing charge — applies to County lodging including vacation rentals of houses/apartments/condominiums. The current-linked regulation defines exempt permanent residence as occupying or having a right to occupy for at least 30 consecutive days. December 14, 2023 amendments include incidental charges and markups but exclude taxes and separately stated optional non-accommodation charges. January 14, 2026 FAQ says registered facilitators should collect/remit; independent hosts must register/collect/remit and may file monthly through the county portal. Confirm the facilitator’s county registration. The FAQ's General Business License reference is not imposed on Chicago properties: the county license page limits it to unincorporated Cook County.; platform collects: not verified. Source: https://www.cookcountyil.gov/sites/g/files/ywwepo161/files/service/hotel-accommodations-tax-regulation-2016-1-subject-definition-permanent-resident.pdf
- **Illinois Hotel Operators’ Occupation Tax**: 6% of 94% of gross receipts — applies to For taxable sleeping-room rentals of fewer than 30 consecutive days in Chicago. Since July 1, 2026, qualifying hotel marketplace facilitators meeting the $100,000 Illinois gross-receipts threshold remit IDOR-administered taxes on facilitated rentals. Hosts with direct bookings or a non-remitting facilitator must register and report their own taxable transactions. Named-platform remittance is unverified. Permanent residents with a right to occupy for at least 30 days are exempt under IDOR guidance; early termination can make receipts taxable.; platform collects: not verified. Source: https://tax.illinois.gov/research/taxrates/excise.html
- **Chicago Municipal Hotel Tax (IDOR administered)**: 1% of 99% of gross receipts — applies to For taxable sleeping-room rentals of fewer than 30 consecutive days in Chicago. Since July 1, 2026, qualifying hotel marketplace facilitators meeting the $100,000 Illinois gross-receipts threshold remit IDOR-administered taxes on facilitated rentals. Hosts with direct bookings or a non-remitting facilitator must register and report their own taxable transactions. Named-platform remittance is unverified. Distinct from Chicago's locally administered 4.5% Hotel Accommodations Tax.; platform collects: not verified. Source: https://tax.illinois.gov/research/taxrates/excise.html
- **Illinois Sports Facilities Authority Hotel Operator’s Tax**: 2% of 98% of gross receipts — applies to For taxable sleeping-room rentals of fewer than 30 consecutive days in Chicago. Since July 1, 2026, qualifying hotel marketplace facilitators meeting the $100,000 Illinois gross-receipts threshold remit IDOR-administered taxes on facilitated rentals. Hosts with direct bookings or a non-remitting facilitator must register and report their own taxable transactions. Named-platform remittance is unverified.; platform collects: not verified. Source: https://tax.illinois.gov/research/taxrates/excise.html
- **Metropolitan Pier and Exposition Authority Hotel Tax**: 2.5% of gross charges — applies to For taxable sleeping-room rentals of fewer than 30 consecutive days in Chicago. Since July 1, 2026, qualifying hotel marketplace facilitators meeting the $100,000 Illinois gross-receipts threshold remit IDOR-administered taxes on facilitated rentals. Hosts with direct bookings or a non-remitting facilitator must register and report their own taxable transactions. Named-platform remittance is unverified.; platform collects: not verified. Source: https://tax.illinois.gov/research/taxrates/excise.html

## Enforcement

- Penalties: Under MCC 4-14-090 the general shared-housing range is $1,500–$3,000 per offense per day. Section 4-14-050 sets $2,500–$5,000 for illegal activity/objectionable conditions, $5,000–$10,000 for egregious conditions or occupancy violations and $1,500–$5,000 for prohibited RRZ activity. Section 4-14-030(c) sets $5,000 per offense per day for failing to remove/not rent a finally ineligible unit. Vacation-rental operation without a license is $2,500–$3,000 per offense per day under 4-6-300(i). Exceeding a building cap can expose all registrations/licenses there to revocation. Section 4-14-090(b) says buildings with more than five units, while the underlying cap and vacation-rental provision cover five or more; application of the shared-housing building-wide revocation clause to exactly five units remains unresolved. Corporation counsel may seek injunctions. Revocation lasts at least two years and thereafter until occupation by a new unrelated owner/tenant under 4-14-090(d).
- Platform liability: Licensed intermediaries must provide required insurance, comply with applicable tax law, enable registration/license numbers and avoid booking unregistered shared housing or unlicensed vacation rentals. Section 4-13-240 requires monthly platform reports and three-year books/records; BACP submits quarterly ward reports. Chapter 4-13 violations carry $1,500–$3,000 per offense per day. Legal duties do not establish a named platform's actual compliance or tax collection. The enacted July 1, 2026 state facilitator regime changes IDOR tax responsibility; city and county duties remain separately applicable. Monthly reports include unit number/address, nights, rent, City tax, future booked nights, contacts and ward. An order for de-anonymized data under 4-13-240(f) generally requires production or a written legal objection within 21 calendar days of issuance; a timely objection receives a hearing within ten business days.
- Notes: Shared-housing ineligibility and ordinary suspension/revocation notices allow hearing requests within ten calendar days of sending, commencement within ten business days of receipt, and a decision within sixty calendar days after completion. Emergency imminent-threat orders permit up to ten calendar days without a prior hearing but require an opportunity to be heard during that period; failure to request/attend can result in revocation. One egregious incident or two qualifying nuisance incidents in twelve months can support action. Vacation-rental emergency and ordinary proceedings follow 4-6-300(j). Code authorizes vacation-rental inspections and operator-unit inspections under rules; no universal host inspection schedule is inferred. Current primary-source litigation status is unresolved. Ordinary vacation-license proceedings incorporate 4-4-280: five calendar days' written notice of a public hearing and a written decision within 60 calendar days after completion. That section expressly treats Commissioner completion timeframes under Title 4 as directory, not jurisdictional; this does not extend a host's hearing-request deadline.

## Proposals and updates on record
Statuses reflect the record review date. Dates may have passed; check linked sources for current status.

- Regulated-business license fees, including vacation-rental licenses, begin CPI adjustments in January 2027 under 4-5-010. Adjustments are capped at 2.5% or a lower justified amount and rounded to the nearest dollar. The actual published 2027 fee is unverified. (Passed, not yet effective, 2027-01) — https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2609232

## Unresolved research items

- Check current restricted-zone and prohibited-building lists for the exact address; no current active count or complete list was verified.
- No complete current inventory of STR proposals, RRZ petitions or later uncodified ordinances was established. The January 2027 fee adjustment is documented; other changes may exist.
- City BACP guidance, application PDFs and Finance tax guidance returned access errors. Portal requirements and administrative rules, including any relaxation of the two-night/48-hour minimum, remain unverified.
- Current primary court orders and state/local STR preemption boundaries were not established.
- Check the property's zoning, construction/fire requirements, parking, HOA/cooperative rules and lease; this review does not determine parcel eligibility.
- The additional retail-sales tax in an older composite-tax report was not supported by primary evidence. No composite total or actual named-platform collection is asserted.
- Cook County's complete current ordinance text, filing and refund deadlines, retention term and appeal procedure remain unverified. Its linked regulation, January 2026 FAQ and amendment notice were read and visually checked.
- County guidance broadly mentions a General Business License, but that separate license is limited to unincorporated territory and is not imposed on Chicago properties.
- Vacation-rental adjustment fees and the shared-housing cap-calculation section 4-14-105 remain unverified. The vacation-rental fractional maximum rounds down under 17-1-0605-B.
- City transient occupancy includes stays of 31 days or fewer; state and County lodging-tax exemptions use different definitions. No blanket licensing or tax exemption day-count is asserted.
- State tax-account fees/renewal and statutory refund/appeal deadlines remain unverified. City account charges, a fixed tax-record retention term and the separate judicial-review deadline were not established.
- The shared-housing building-wide revocation clause says 'more than five units,' unlike the underlying five-or-more cap and vacation-rental clause. Enforcement for exactly five units needs authoritative clarification.
- The actual published 2027 regulated-business fee and online-application implementation rules remain unverified; the $25 initial payment is a credit, not an additional license fee.

## Sources

- Chicago Municipal Code §4-14-010 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611530
- Chicago Municipal Code §4-6-290 (official, accessed 2026-09-30): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2610263
- Chicago Municipal Code §4-14-020 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611567
- Chicago Municipal Code §4-5-010 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2609232
- Chicago Municipal Code §4-14-060 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611638
- Chicago Municipal Code §4-14-050 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611622
- Chicago Municipal Code §4-14-090 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611660
- Chicago Municipal Code §4-6-300 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2610323
- Chicago Municipal Code §4-14-040 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611594
- Chicago Municipal Code §4-16-100 (official, accessed 2026-09-30): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611695
- Chicago Municipal Code §4-16-200 (official, accessed 2026-09-30): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611705
- Chicago Municipal Code §4-16-230 (official, accessed 2026-09-30): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611721
- Chicago Municipal Code §4-16-220 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611716
- Chicago Municipal Code §4-13-200 (official, accessed 2026-09-30): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611393
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- IDOR FY2026-33: July 2026 hotel-tax changes (official, accessed 2026-10-02): https://tax.illinois.gov/research/publications/bulletins/fy-2026-33.html
- IDOR FY2025-28: historical July 2025 guidance (official, accessed 2026-09-30): https://tax.illinois.gov/research/publications/bulletins/fy-2025-28.html
- Cook County: Hotel Accommodations Tax (official, accessed 2026-09-30): https://www.cookcountyil.gov/service/hotel-tax
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- Chicago City Clerk: Restricted residential precincts (official, accessed 2026-09-30): https://www.chicityclerk.com/houseshare/restricted-precincts
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- Chicago Municipal Code §3-4-170 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2605639
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- Chicago Municipal Code §4-16-330 (official, accessed 2026-10-02): https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611738

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Educational information, not legal advice. Published by STRWatch (Laniakea Technologies LLC).