Rockford, IL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Hotel/motel tourism tax
- 5% of room rental rate
- Hotel/motel sales tax
- 1% of rental charge
- Combined city rate
- 6% of room charge
- Long-stay exemption
- Stays over 30 consecutive days
- Remittance deadline
- Last day of each month
Summary
Rockford taxes hotel and motel room rentals at a combined 6%: 5% under the hotel/motel tourism tax plus 1% general hotel sales tax.
There is hereby imposed upon all persons engaged in the city in the business of renting, leasing, or letting rooms in a hotel (as defined in subsection (b)), at a rate of five percent of the room rental rate as defined in subsection (b).
(b)Definitions. The following terms used in this division shall be defined as follows: Hotel means a building or structure kept, used, or maintained as, or advertised, or held out to the public to be an inn, family hotel, apartment hotel, lodging house, dormitory, or place where sleeping or rooming accommodations are furnished for hire to rent, whether with or without meals, in which one or more sleeping rooms are used and maintained for the accommodation of guests, lodgers, or roomers.
Online travel company (OTC) means an organization that books reserves, or rents hotel rooms and makes other travel arrangements for consumers via the world wide web, internet or other digital means.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 18).
Full Breakdown
City Code § 5-70 imposes a 5% hotel/motel tourism tax on the room rental rate for anyone renting, leasing, or letting hotel rooms in Rockford, layered on top of the separate 1% hotel or motel sales tax in § 5-43: a combined 6% city tax on top of the state hotel operators' occupation tax. Both taxes exempt stays of more than 30 consecutive days by the same renter and rooms occupied by employees as a condition of employment. Operators must remit collections to the finance director monthly and file a report of room rental receipts by the last day of each month (§§ 5-73, 5-44).
Violations & Fines
Failure to remit or report is punishable by a fine of not less than $200 for a first offense and not less than $300 for each subsequent offense within 180 days; each day of continued violation is a separate offense (§§ 5-45, 5-74).
Frequently Asked Questions
What is Rockford's total hotel tax rate?
Is a long-term hotel stay taxed?
Sources & Official References
Other rules in Rockford
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