Peoria, IL Hotels & Lodging: Transient Occupancy Tax (2026)

Article VII of Chapter 27 imposes Peoria's hotel and motel room rental tax under Section 27-147, and the same section folds short-term rentals into the identical rate structure, though the short-term rental side of the ordinance is covered separately for that category. 1) adds a further 1 percent credited specifically to the city's tourism and event development fund, bringing the combined rate to 8 percent. The tax is not open-ended: it only applies to the first 30 consecutive days of a stay by the same renter, and it does not apply at all to a hotel or motel employee renting a room at the same establishment.

Section 27-147(c) makes the hotel or motel operator a trustee for the city, obligated to collect the tax from the renter at the time of payment and remit it to the city comptroller, with the tax amount stated separately on the guest's receipt or invoice under subsection (d). 00, running January 1 through December 31; no license can be issued or renewed while the establishment is delinquent on the room tax or on any related fines. Under Section 27-151(a), the hotel or motel owner files a tax return and remits the collected tax monthly, due by the 30th of the month following the reporting period.

Under Section 27-153, the city credits nine percent of the total tax proceeds, including penalties, to the tourism and event development fund, with the balance going to the corporate fund.