CCH Tax Day Report
The 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;
— 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 Ordinance O2016-5111, Chicago City Council, June 24, 2016