Skokie, IL Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Collector
- booking platform if it collects payment
- Return
- filed monthly with Village Manager
- Collection fee
- 2% of tax retained by filer
- Late interest
- 1% per month
- Late penalty
- 10% of tax and interest
- Records
- Village may inspect books anytime
Summary
Skokie requires whoever collects payment for a short-term rental, including a third-party booking platform like Airbnb, to collect and remit the Village's occupancy tax. Collectors file a monthly return, may keep 2% of the tax as compensation, and face 1% monthly interest plus a 10% penalty for late or unpaid tax under the Hotel-Motel Tax article.
The owner and operator of each hotel or motel and the person to whom the certificate of occupancy to operate the hotel or motel shall have been issued by the Village shall bear, jointly and severally, the duty to collect the tax from each user, lessee or tenant of rooms in such hotel or motel. In cases where the rental process is managed by a third-party internet booking entity that also collects payments on the behalf of the property owners, such entity shall be responsible to collect the tax and remit to the Village subject to the requirements of this section. ... provided, however, that the person making the return may retain an amount of money equal to 2 percent of the tax due as compensation for services rendered in collection and payment of such tax. ... interest shall accumulate and be due upon the tax at the rate of 1 percent per month. In addition, a penalty of 10 percent of the tax and interest due shall be assessed and collected against any hotel or motel owner, operator or licensee who shall fail to collect and remit the tax imposed by this article.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 205 | Zoning: Supplement 89).
Full Breakdown
Skokie Village Code § 98-142 places the duty to collect its short-term-rental occupancy tax on the owner and operator of the hotel, motel, or rented residence and on whoever holds the certificate of occupancy for it, but it goes further for online bookings: when the rental process is managed by a third-party internet booking entity that also collects payment on the property owner's behalf, that platform, not the host, bears the responsibility to collect the tax and remit it to the Village. Every collector must file a monthly hotel and motel occupancy tax return with the Village Manager or designee under § 98-144, reporting all receipts from renting, leasing, or letting rooms during the preceding month, on forms and by a due date the Manager prescribes.
The person filing the return may retain 2% of the tax due as compensation for collecting and paying it over to the Village. The Village Manager or designee may enter the premises of any hotel, motel, or short-term rental at any time under § 98-145 to inspect and examine its books and records, and it is unlawful to prevent, hinder, or interfere with that examination. Tax collected under the article, along with any interest and penalties, is deposited into the Village's general fund per § 98-149.
The article traces its current collection scheme to Ord. No. 08-1-C-3573 (2008), which first extended these duties to certificate-of-occupancy holders, and Ord. No. 19-2-C-4444 (2019), which folded private-residence short-term rentals fully into the same collection framework as hotels and motels.
Violations & Fines
A host or booking platform that fails to collect and pay the tax within 30 days of the due date owes interest at 1% per month on the unpaid amount, plus a 10% penalty on the tax and interest combined, under § 98-148. The Corporation Counsel can bring a civil action to collect unpaid tax under § 98-146, and willful evasion can cost a hotel or motel its certificate of occupancy under § 98-147 after a notice-and-hearing process.
Frequently Asked Questions
Does Airbnb collect Skokie's short-term rental tax for hosts?
Can a host keep any of the short-term rental tax collected?
What happens if the tax on a Skokie short-term rental is paid late?
Can the Village inspect an STR host's financial records?
Sources & Official References
Other rules in Skokie
How Skokie compares: Cities with the Highest Short-Term Rental Taxes·Compare Skokie to another location·View the Illinois short-term rentals overview
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