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

Section 14-4(e)(7) of the Waukegan City Code states that all transactions for short-term rentals are subject to the tax imposed in Article IV of Chapter 20 of the code, and that owners must comply with all requirements of that article. The tax is charged in addition to, not in place of, any other taxes and charges owed on the transaction. The section places the collection duty squarely on the short-term rental owner: it is the owner's duty to secure the tax from the renter and pay it over to the city under procedures the licensing official prescribes.

The code does allow a practical shortcut, however, by expressly permitting that collection and remittance of the tax be facilitated through the scheduling and booking platform the owner uses to take reservations, which covers the common case where a listing site such as a vacation-rental platform collects payment directly from the guest. Because the tax obligation is tied to the same licensing division that issues the short-term rental license itself, failing to secure and remit the tax is treated as a compliance failure under the short-term rental license rather than a separate free-standing offense, and it exposes the license to the same enforcement path as other violations of Section 14-4(e).