Hotels & Short Term Rentals
The City of La Salle has modified its existing hotel tax ordinance to make it clear that all short-term rentals, including those in private residences, are subject to the tax. This applies to accommodations of up to 30 days. Effective with bookings made on or after April 1, 2019, all such rentals are subject to a tax of 5% of the gross rent paid by the guest, which includes all charges paid by the guest including, but not limited to, amounts paid for the making, servicing, or the facilitating of a reservation, exclusive only of other taxes or fees imposed by a government entity. This tax is required to be collected by those who lease such accommodations at the time the rent is collected and the tax must be separately itemized on the invoice.
The ordinance for short-term leases, hotel/motel tax can be found here.
Taxes must be file monthly using the city’s tax form, which can be found here.
The ordinance for Residential Rental Property can be found here. Properties listed for rent over 30 days must also have a valid Residential Rental Property permit. The cost of this permit is $30 per unit, per year.
Importantly, under the ordinance, both the owner or operator of the hotel and the “facilitator” of the booking, are jointly and severally responsible for collecting and remitting the tax. This means that if a resident or business is using a facilitator to book stays, the facilitator is also responsible to collect and remit the tax. It also means that, if the facilitator charges the guest a fee, that such a fee is also subject to the tax.
We are pleased to report that the City has entered into an agreement with AirBnb, under which AirBnb has accepted full responsibility for collecting and remitting the tax. As a result, for bookings made through AirBnb, the owner or operator of the hotel does not need to collect or remit the tax. However, operators that exclusively use AirBnb as a facilitator still must file a tax return with the City.
At this time, no other facilitator has entered into such an agreement with the City, so if the owner or operator of the hotel uses a facilitator other than AirBnb, or collects rent directly, he or she must verify that the facilitator has collected the tax as it is paid and then remit it monthly to the City. Importantly, if an owner or operator uses a facilitator that is not collecting and remitting taxes, the owner must pay the tax on the full amount charged to the guest (excluding government taxes), not on the net amount that the owner receives from the facilitator.
You should fill out a hard copy of the City’s tax form and either mail it to the following address or drop it off at City Hall: Finance Director, 745 Second Street, La Salle, IL 61301
Please contact Finance Director John Duncan with any questions at email@example.com or at 815-223-3755 ext. 5029.