Oak Lawn, IL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 8% of gross room rental
- Threshold
- Hotels/motels with 10+ rooms
- Remittance
- Quarterly to finance director
- Late penalty
- 1% monthly interest plus 10%
- Capital-expense rebate
- Up to 25% through Dec. 2027
Summary
Oak Lawn levies an 8% tax on gross room rental charges at hotels and motels with 10 or more rooms, collected quarterly by operators.
There is hereby levied and imposed upon the use and privilege of being a transient guest or lodger in a "hotel" or "motel", as defined in this section, in the village, a tax equal to eight percent (8%) of the cost or charge on the gross room rental made by the hotel or motel for every twenty four (24) hour period or any fraction thereof. ... This said tax is exclusive of revenues received from food, beverage and other sales, and shall be applicable to all rental periods regardless of the total length of stay.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-15: Code current through: Ord. 26-09-22, passed April 28, 2026).
Full Breakdown
Oak Lawn Village Code section 3-2-6 imposes an 8% occupancy tax on the gross room rental charged by any hotel or motel, defined as a building with ten or more rooms, suites, or accommodations held out to transient guests for consideration. Operators must collect the tax from guests, itemize it separately on receipts, and remit it to the finance director quarterly, keeping ten percent as a collection fee. Late payment draws 1% monthly interest plus a 10% penalty, and the village president can revoke a delinquent operator's business license after a hearing. Through December 31, 2027, the village may rebate up to 25% of tax collected for qualified capital expenditures such as ADA upgrades or building-system repairs.
Violations & Fines
Unpaid tax accrues 1% monthly interest plus a 10% penalty. The village attorney can sue to collect, and the village president may revoke the operator's business licenses after a hearing on willful nonpayment.
Frequently Asked Questions
Does Oak Lawn's hotel tax apply to Airbnb or short-term rentals?
Who actually pays Oak Lawn's 8% occupancy tax?
Sources & Official References
Other rules in Oak Lawn
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Transient Occupancy Tax in Nearby Cities
How other cities in Cook County handle transient occupancy tax.