Illinois has no STR preemption - municipalities regulate locally. Springfield requires a Short-Term Rental Operating License with three tiers (owner-occupied, multi-family, commercial), $1 million liability insurance, and a 10% per-block density cap. Operators collect the 6% Hotel Operators' Occupation Tax under 35 ILCS 145.
Illinois has no statute preempting local STR rules. Springfield, the state capital, regulates STRs through its Code of Ordinances under home rule authority. Springfield's framework recognizes three license types: Type 1 (owner-occupied, single-family residential, capped at 95 rental days/year); Type 2 (non-owner-occupied, multi-family, no cap, max 2 units); Type 3 (non-owner-occupied, commercial/mixed-use, no cap, max 2 units). Operators must display the license number, carry $1 million commercial liability insurance, pass safety inspection, and limit occupancy to 2 guests per bedroom up to 12 total. A 10% block density cap restricts STR concentration. Operators must register with the Illinois Department of Revenue and collect 6% Hotel Operators' Occupation Tax under 35 ILCS 145/3.
Operating without a Springfield STR Operating License violates the city Code of Ordinances; penalties include daily fines, license revocation, and zoning enforcement. Failing to remit Hotel Operators' Occupation Tax under 35 ILCS 145 is enforced by IDOR.
See how Sangamon County's permit requirements rules stack up against other locations.
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