Hotel Accommodations Tax (7520) AND Vacation Rental and Shared Housing Surcharge (7520S)

On 1/10/19, any business that has previously reported gross charges from vacation rentals and/or shared housing on its Hotel Accommodations Tax return (Form 7520) will be registered for the Vacation Rental and Shared Housing Surcharge (Form 7520S). The new form mirrors the 7520 tax return, but the Tax and the Surcharge should be paid and reported separately beginning with the December 2018 payment due 1/15/19. As a reminder, the Surcharge rate is 6% as of 12/1/18. The Hotel Accommodations Tax remains 4.5%. Please email revenuedatabase@cityofchicago.org or call our Business Contact Center at 312-747-4747 if you have any questions.

  

Municipal Code Reference: 3-24
Tax Return Form Code: Form 7520
Procedure: The Hotel Accommodations Tax is imposed upon the rental or leasing of any hotel accommodations.  Operators must collect the tax.
Tax Rate:

Effective 12/1/18: Base rate of 4.5% of the gross rental or leasing charge. For vacation rentals and shared housing units, a 6% surcharge in addition to the 4.5% base rate for a total City tax rate of 10.5% of the gross rental or leasing charge.

Through 11/30/18: Base rate of 4.5% of the gross rental or leasing charge. For vacation rentals and shared housing units, a 4% surcharge in addition to the 4.5% base rate for a total City tax rate of 8.5% of the gross rental or leasing charge. 

Exemptions, Deductions and Credits: The Hotel Tax does not apply to:
  • Any temporary accommodation provided by a hospital.
  • A rental of an accommodation which is considered a permanent residence of the person who occupies it.
Rulings and Procedures:

Hotel Tax Ruling 1: Domicile and permanent residence
Hotel Tax Ruling 2: Supplement

Uniform Revenue Procedures Ordinance Ruling 6: Collection Obligations - Facilitators

April 2008 Information Bulletin - Hotel Tax Matrix
Hotel Tax Matrix - Revenue
Hotel Tax Matrix - Exemptions

Hotel Tax - Shared Housing Substitute Ordinance

New Vacation Rental and Shared Housing Surcharge 2018

 

 Supporting Information Facts

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