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

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Governing law
McLean County Code § 320-1 to § 320-6
Tax rate
1% of gross rental receipts
Collector
McLean County Treasurer
Exemption
Stays of 30+ consecutive days
Scope
Hotels outside taxing cities/villages
Filing
Monthly return, quarterly if under $50/mo

Summary

McLean County taxes hotel operators outside city limits at 1% of gross rental receipts under its Hotel Operators' Occupation Tax Ordinance, covering motels, tourist homes, lodging and rooming houses but exempting guests who stay 30 days or more.

These county ordinances apply to unincorporated areas of McLean County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

A tax is hereby imposed upon persons engaged in the business of renting, leasing or letting rooms in a hotel at the rate of 1% of the gross rental receipts from such renting, leasing or letting, excluding, however, from gross rental receipts the proceeds of such renting, leasing or letting to permanent residents of that hotel.

Full Breakdown

§ 320-3 sets the rate at 1% of gross rental receipts from renting, leasing or letting rooms, but excludes receipts from a PERMANENT RESIDENT, defined as anyone who occupies or has the right to occupy a room for at least 30 consecutive days. Operators may pass the tax through to guests as a separate line-item charge. Every operator must keep separate books showing taxable rents under § 320-4, and file a monthly return with the McLean County Treasurer under § 320-5 listing gross receipts, exclusions and tax due; operators averaging $50 or less in monthly liability can file quarterly, and those averaging $10 or less can file annually under § 320-6.

Violations & Fines

An operator who fails to keep separate taxable-rent records under § 320-4 has their tax liability computed from the entire proceeds of the hotel business rather than just the taxable portion. Monthly returns filed with the Treasurer under § 320-5 must state the amount of tax due and any penalty due, meaning late or inaccurate filings carry a penalty assessed alongside the return itself.

Frequently Asked Questions

What is McLean County's hotel occupancy tax rate?
Section 320-3 sets the Hotel Operators' Occupation Tax at 1% of gross rental receipts from renting, leasing or letting rooms in a hotel, collected by the McLean County Treasurer from operators outside cities that already impose their own hotel tax.
Does McLean County's hotel tax apply to long-term guests?
No. Section 320-3 excludes gross rental receipts from a permanent resident, defined in § 320-2 as anyone who occupies or has the right to occupy a room for at least 30 consecutive days, from the taxable base.
Do short-term lodging houses count as hotels under McLean County's tax?
Yes. Section 320-2 defines HOTEL to expressly include inns, motels, tourist homes, lodging houses, rooming houses and apartment houses located outside a taxing city, village or incorporated town, not just traditional hotels.

Sources & Official References

Other rules in McLean County

All McLean County rules

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