Machesney Park, IL Short-Term Rentals: Taxes & Fees (2026)

Winnebago County's authority over short-term rentals in unincorporated areas runs on two tracks: zoning under Chapter 90 (Unified Development Ordinance) and a local hotel/motel tax administered by the County Treasurer. Chapter 90 Article 8 (Table 8.1) lists Vacation Rentals as a Special Use in the R-A (Residential-Agricultural) district and prohibits them in the R-R sub-district, so a host outside an incorporated village must obtain Special Use Permit approval from the Zoning Board of Appeals before operating. The county levies a 2% Hotel/Motel Sales Tax on the gross rental receipts of every operator renting rooms for periods under 30 days; returns are filed monthly with the Winnebago County Treasurer using the official worksheet, with checks payable to the Winnebago County Treasurer. Operators must also register with the Illinois Department of Revenue and collect the 6% state Hotel Operators' Occupation Tax under 35 ILCS 145. Effective January 6, 2026 (per IDOR Bulletin FY 2025-28), hosting platforms such as Airbnb and Vrbo become 're-renters of hotel rooms' and must collect and remit the state tax on the host's behalf, but the separate 2% county tax obligation remains with the operator unless the platform contracts to collect it. Confirm current Special Use Permit fees and tax filing instructions with Planning & Zoning at 815-319-4350 and the Treasurer at 815-319-4400. Properties inside Rockford, Loves Park, Machesney Park, or another incorporated municipality follow that city's STR code, not the county's.