Illinois ~ Sales and Use Tax: Chicago to Tax Rentals of Shared Housing Units

first_imgCCH Tax Day ReportThe city of Chicago will impose a 4% surcharge on sales of hotel accommodations at “vacation rentals” and “shared housing units” and also impose the current 4.5% gross rental or leasing charge on “shared housing units,” effective July 1, 2016. This surcharge will be imposed in addition to the current 4.5% gross rental or leasing charge. The new surcharge will not apply to:— an accommodation a lessee or tenant occupies a his or her domicile or permanent residence;— temporary accommodations in nonprofit medical institutions, hospitals, or accredited medical education institutions; or— rooms rented by a bed-and-breakfast.“Shared housing” will mean a dwelling unit containing 6 or fewer sleeping rooms any portion of which is rented, for transient occupancy by guests, but will not include:— single-room occupancy buildings;— hotels;— corporate housing;— bed-and-breakfast establishments,— guest suites; or— vacation rentals.“Vacation rental” will mean a dwelling unit that contains 6 or fewer sleeping rooms that are available for rent or for hire for transient occupancy by guests.The Chicago Department of Finance issued a news release about the new surcharge which was previously reported. (TAXDAY, 06/28/2016, S.3)Subscribers can view amendments made to the tax ordinance.Chicago_O2016-5111Chicago Ordinance O2016-5111, Chicago City Council, June 24, 2016last_img

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