SHORT-TERM RENTAL TAX ACT

Illinois General Assembly - Full Text of HB5776

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5776

Introduced , by Rep. Will Guzzardi

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.1038 new
30 ILCS 105/6z-149 new
310 ILCS 130/15

Creates the Short-Term Rental Excise Tax Act. Imposes a tax upon
renters of short-term rentals at the rate of 4% of the rental price of
those short-term rentals. Provides that the proceeds from the tax shall be
deposited into the Community Land Trust Fund. Amends the State Finance Act
to create the Community Land Trust Fund. Provides that moneys in the
Community Land Trust Fund shall be used by the Illinois Housing
Development Authority for development, staffing, and capacity building and
technical assistance related to community land trusts in the State. Amends
the Community Land Trust Home Ownership Act. Makes changes to the
definition of community land trust. Effective immediately.
LRB104 21738 HLH 37582 b

A BILL FOR

HB5776
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1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
5
Short-Term Rental Excise Tax Act.

6

Section 5.
Definitions.
As used in this Act:
7

"Department" means the Department of Revenue.
8

"Hosting platform" means a person who provides an online
9
application, software, website, or system through which a
10
short-term rental located in this State is advertised or held
11
out to the public as available to rent for occupancy.
12

"Net revenue realized" means the revenue collected by the
13
State under this Act, less the amount paid out as discounts
14
under Section 40 and refunds to short-term rental operators
15
for overpayment of liability under this Act.
16

"Occupancy" means the use or possession, or the right to
17
the use or possession, of any short-term rental for any
18
purpose or the right to the use or possession of the
19
furnishings or to the services and accommodations accompanying
20
the use and possession of the short-term rental.
21

"Person" means any natural individual, firm, partnership,
22
association, joint stock company, joint venture, public or
23
private corporation, or limited liability company or any

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receiver, executor, trustee, guardian, or other representative
2
appointed by order of any court.
3

"Renter" means the lessee or tenant of a short-term
4
rental.
5

"Rental price" means the gross amount of consideration for
6
the occupancy of a short-term rental, valued in money, whether
7
received in money or otherwise, including all receipts, cash,
8
credits, and property or services of any kind or nature.
9
"Rental price" includes any fee, charge, or commission
10
received from a guest by a re-renter of short-term rentals
11
specifically in connection with the re-rental of short-term
12
rentals.
13

"Re-renter of short-term rentals" means a person who is
14
not employed by the short-term rental operator but who, either
15
directly or indirectly, through agreements or arrangements
16
with third-parties, collects or processes the payment of rent
17
for a short-term rental located in this State and (i) obtains
18
the right or authority to grant control of, access to, or
19
occupancy of a short-term rental in this State to a renter of
20
the short-term rental or (ii) facilitates the booking of a
21
short-term rental in this State.
22

"Short-term rental" means an owner-occupied,
23
tenant-occupied, or non-owner-occupied dwelling, including,
24
but not limited to, an apartment, house, cottage, or
25
condominium, located in this State, where: (i) at least one
26
room in the dwelling is rented to an occupant for a period of

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less than 30 consecutive days; and (ii) all accommodations are
2
reserved in advance; provided, however, that a dwelling shall
3
be considered a single room if rented as such.
4

"Short-term rental marketplace" means a physical or
5
electronic place, forum, platform, application, or other
6
method by which short-term rental operators rent, lease, or
7
let, or offer to rent, lease, or let, short-term rentals.
8

"Short-term rental marketplace facilitator" means a person
9
who, pursuant to agreements with unrelated third-party
10
short-term rental operators, directly or indirectly through
11
one or more affiliates, facilitates the renting, leasing, or
12
letting of short-term rentals by unrelated third-party
13
short-term rental operators by:
14

(1) listing or advertising short-term rentals for
15

rent, lease, or letting by short-term rental operators in
16

a short-term rental marketplace, the renting, leasing, or
17

letting of which is subject to tax under this Act; and
18

(2) collecting, either directly or indirectly, through
19

agreements or arrangements with third parties, payment
20

from renters and transmitting those payments to the
21

short-term rental operator, regardless of whether the
22

short-term rental marketplace facilitator receives
23

compensation or other consideration in exchange for its
24

services.
25

"Short-term rental marketplace facilitator" includes
26
re-renters of short-term rentals and hosting platforms that

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otherwise meet the definition of "short-term rental
2
marketplace facilitator" set forth in this Section.
3

"Short-term rental operator" means any person engaged in
4
the business of renting, leasing, or letting a short-term
5
rental, including any person who rents, leases, or lets
6
short-term rentals through a short-term rental marketplace
7
operated by an unrelated third-party short-term rental
8
marketplace facilitator.

9

Section 10.
Rate; exemptions.
10

(a) On and after January 1, 2027, a tax is imposed upon
11
each renter for the privilege of renting, leasing, or letting
12
a short-term rental in this State at the rate of 4% of the
13
rental price of that short-term rental. The rental price shall
14
not include taxes or charges that are added on account of the
15
liability arising from this tax or any tax imposed by the State
16
or any governmental agency on the occupation of renting,
17
leasing, or letting or on the privilege of using short-term
18
rentals or hotels, as defined in Section 2 of the Hotel
19
Operators' Occupation Tax Act. The tax imposed under this Act
20
shall be in addition to all other occupation or privilege
21
taxes imposed by the State of Illinois or by any municipal
22
corporation or political subdivision thereof.
23

(b) The tax imposed by this Act shall be collected from the
24
renter by the short-term rental operator and shall be remitted
25
to the Department as provided in Section 40. Short-term rental

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operators shall collect the tax from the renter by adding the
2
tax to the charge for the act or privilege of renting, leasing,
3
or letting a short-term rental in this State. The tax imposed
4
by this Act shall, when collected, be stated as a distinct item
5
separate and apart from the gross charge for renting, leasing,
6
or letting a short-term rental. The tax imposed by this Act
7
shall constitute a debt of the renter to the short-term rental
8
operator who provides such taxable services until paid and, if
9
unpaid, is recoverable at law in the same manner as the
10
original charge for such taxable services. If the renting,
11
leasing, or letting of a short-term rental is done through a
12
short-term rental marketplace facilitator that has met the tax
13
remittance threshold set forth in Section 15 of this Act, then
14
the short-term rental marketplace facilitator is the
15
short-term rental operator for the purposes of the taxes under
16
this Act.
17

(c) The tax under this Act is not imposed upon the
18
privilege of engaging in any business in interstate commerce
19
or otherwise, which business may not, under the Constitution
20
and statutes of the United States or under any federal treaty,
21
be made the subject of taxation by this State.
22

(d) The tax imposed by this Act does not apply to the
23
renting, leasing, or letting of short-term rentals by an
24
entity that is organized and operated exclusively for
25
religious purposes and that possesses an active Exemption
26
Identification Number issued by the Department pursuant to the

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Retailers' Occupation Tax Act if the renting, leasing, or
2
letting is in furtherance of the purposes for which the exempt
3
organization is organized. This subsection (d) is exempt from
4
Section 20 of this Act.
5

(e) The tax imposed by this Act does not apply to the
6
renting, leasing, or letting of short-term rentals by an
7
entity that is organized and operated exclusively by an
8
organization chartered by the United States Congress for the
9
purpose of providing disaster relief and that possesses an
10
active Exemption Identification Number issued by the
11
Department pursuant to the Retailers' Occupation Tax Act if
12
the renting, leasing, or letting is in furtherance of the
13
purposes for which the exempt organization is organized. This
14
subsection (e) is exempt from Section 20 of this Act.
15

(f) If any short-term rental operator collects an amount,
16
however designated, that purports to be for the renter's tax
17
liability measured by rental charges that are not subject to
18
the short-term rental excise tax under this Act, or if any
19
short-term rental operator, in collecting an amount, however
20
designated, that purports to be for the renter's tax liability
21
measured by rental charges which are subject to the short-term
22
rental excise tax under this Act, collects more from the
23
renter than the renter's short-term rental excise tax
24
liability for the transaction is, the renter shall have a
25
legal right to claim a refund of that amount from the
26
short-term rental operator. If that amount is not refunded to

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the renter, for any reason, the short-term rental operator is
2
liable to pay that amount to the Department.

3

Section 15.
Short-term rental marketplace facilitators.
4

(a) A short-term rental marketplace facilitator meets the
5
tax remittance threshold for purposes of this Act if, during
6
the previous 12-month period, the cumulative gross rental
7
receipts received by the short-term rental marketplace
8
facilitator from the renting, leasing, or letting of
9
short-term rentals on the facilitator's own behalf or on
10
behalf of short-term rental operators, not including rental
11
receipts exempt from the tax under subsections (d) and (e) of
12
Section 10 of this Act, are greater than or equal to $100,000.
13
A short-term rental marketplace facilitator who meets the tax
14
remittance threshold and rents, leases, or lets Illinois
15
short-term rentals to renters is subject to all applicable
16
procedures and requirements of this Act.
17

A short-term rental marketplace facilitator shall
18
determine on a quarterly basis, ending on the last day of
19
March, June, September, and December, whether it meets the tax
20
remittance threshold in this Section for the preceding
21
12-month period. If the short-term rental marketplace
22
facilitator meets the tax remittance threshold for a 12-month
23
period, it is required to collect and remit the tax imposed
24
under this Act and to file all applicable returns for one year.
25
At the end of that one-year period, the short-term rental

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marketplace facilitator shall determine whether it met the tax
2
remittance threshold for the preceding 12-month period. If the
3
short-term rental marketplace facilitator met the tax
4
remittance threshold for the preceding 12-month period, it is
5
required to continue to collect and remit the tax imposed
6
under this Act and file returns for the subsequent year. If, at
7
the end of a one-year period, a short-term rental marketplace
8
facilitator that was required to collect and remit the tax
9
imposed under this Act determines that it did not meet the tax
10
remittance threshold during the preceding 12-month period, the
11
short-term rental marketplace facilitator shall subsequently
12
determine on a quarterly basis, ending on the last day of
13
March, June, September, and December, whether it meets the tax
14
remittance threshold for the preceding 12-month period.
15

A short-term rental marketplace facilitator that meets the
16
tax remittance threshold shall be entitled to any credits,
17
deductions, or adjustments to rental receipts otherwise
18
provided to the short-term rental operator, in addition to any
19
adjustments provided directly to the short-term rental
20
marketplace facilitator, including, but not limited to,
21
adjustments such as discounts, coupons, and rebates. In
22
addition, a short-term rental marketplace facilitator is
23
entitled to the discount provided in Section 40 of this Act on
24
all short-term rental marketplace rentals, leases, or
25
lettings, and the short-term rental operator shall not include
26
rentals, leases, or lettings made through such a short-term

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rental marketplace facilitator when computing any discount on
2
remaining rentals, leases, or lettings. Short-term rental
3
marketplace facilitators shall report and remit the applicable
4
taxes under this Act on leases, rentals, or lettings
5
facilitated for short-term rental operators separately from
6
any taxes under this Act on taxable rentals, leases, or
7
lettings made directly by the short-term rental marketplace
8
facilitator or its affiliates.
9

The short-term rental marketplace facilitator that meets
10
the tax remittance threshold is liable for the remittance of
11
all applicable taxes under this Act on rentals, leases, or
12
lettings made through the short-term rental marketplace and is
13
subject to audit on all of those rentals, leases, or lettings.
14
The Department shall not audit short-term rental operators for
15
their short-term rental marketplace rentals, leases, or
16
lettings if the short-term rental marketplace facilitator
17
remitted the applicable taxes under this Act unless the
18
short-term rental marketplace facilitator seeks relief as a
19
result of incorrect information provided to the short-term
20
rental marketplace facilitator by a short-term rental operator
21
as set forth in this Section. The short-term rental
22
marketplace facilitator shall not be held liable for tax on
23
any rentals, leases, or lettings made by a short-term rental
24
operator that take place outside of the short-term rental
25
marketplace and that are not a part of any agreement between a
26
short-term rental marketplace facilitator and a short-term

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rental operator. In addition, short-term rental marketplace
2
facilitators shall not be held liable to the State of Illinois
3
for having charged and remitted an incorrect amount of tax
4
under this Act if, at the time of the rentals, leases, or
5
lettings, the tax is computed based on erroneous data provided
6
by the State on tax rates, boundaries, or taxing jurisdictions
7
or incorrect information provided to the short-term rental
8
marketplace facilitator by the short-term rental operator.
9

(b) A short-term rental marketplace facilitator that meets
10
the tax remittance threshold shall:
11

(1) provide notice to each short-term rental operator
12

at the time of the agreement between the short-term rental
13

marketplace facilitator and short-term rental operator
14

that the short-term rental marketplace facilitator assumes
15

the rights and duties of a short-term rental operator
16

under this Act with respect to rentals, leases, or
17

lettings made by the short-term rental operator through
18

the short-term rental marketplace;
19

(2) certify, upon request, to the short-term rental
20

operator that the short-term rental marketplace
21

facilitator assumes the rights and duties of a short-term
22

rental operator under this Act with respect to rentals,
23

leases, or lettings made by the short-term rental operator
24

through the short-term rental marketplace; and
25

(3) collect and remit taxes imposed by this Act as
26

required by this Act for all rentals, leases, and lettings

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made through the short-term rental marketplace.
2

(c) For any rentals, leases, and lettings made through a
3
short-term rental marketplace involving 2 or more parties that
4
meet the definition of short-term rental marketplace
5
facilitator, nothing in this Act shall prohibit those parties
6
from making an agreement regarding which party shall be
7
responsible for collecting and remitting taxes imposed by this
8
Act, so long as the party so responsible is registered with the
9
State for the purposes of remitting the taxes imposed by this
10
Act. If the parties enter into an agreement described in this
11
subsection, the party that agrees to collect and remit the
12
taxes imposed by this Act shall be the sole party liable for
13
the taxes imposed by this Act, and the other parties to the
14
agreement are not liable for the tax. Any party subject to such
15
an agreement must keep a copy of the agreement in its books and
16
records and provide a copy to the Department upon request.
17

(d) A short-term rental marketplace facilitator is subject
18
to audit on all short-term rental marketplace rentals, leases,
19
and lettings for which it is the short-term rental operator
20
but shall not be liable for tax or subject to audit on rentals,
21
leases, or lettings made by short-term rental marketplace
22
operators outside of the short-term rental marketplace.
23

(e) Nothing in this Act shall allow the Department to
24
collect short-term rental excise taxes from both the
25
short-term rental marketplace facilitator and the short-term
26
rental operator on the same transaction.

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Section 20.
Sunset of exemptions, credits, and deductions.
2
The application of every exemption, credit, and deduction
3
against the tax imposed by this Act shall be limited by a
4
reasonable and appropriate sunset date. A taxpayer is not
5
entitled to take the exemption, credit, or deduction beginning
6
on the sunset date and thereafter. If a reasonable and
7
appropriate sunset date is not specified in the Public Act
8
that creates the exemption, credit, or deduction, a taxpayer
9
shall not be entitled to take the exemption, credit, or
10
deduction beginning 5 years after the effective date of the
11
Public Act creating the exemption, credit, or deduction and
12
thereafter.

13

Section 25.
Books and records.
Every short-term rental
14
operator, every short-term rental marketplace facilitator that
15
is required to collect and remit the tax under this Act, and
16
every renter making direct tax payments to the Department
17
under this Act, shall keep separate books or records of his
18
business as a short-term rental operator or short-term rental
19
marketplace facilitator so as to show the rents and
20
occupancies taxable under this Act separately from his
21
transactions that are not taxable under this Act. A short-term
22
rental operator's books and records shall also include
23
certificates provided by the short-term rental marketplace
24
facilitator under paragraph (2) of subsection (b) of Section

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15 of this Act for all rentals, leases, and lettings made
2
through a short-term rental marketplace in accordance with the
3
requirements of this Act. If any short-term rental operator or
4
short-term rental marketplace facilitator fails to keep such
5
separate books or records, that short-term rental operator or
6
short-term rental marketplace facilitator shall be liable for
7
the tax at the rate designated in Section 10 of this Act upon
8
the entire proceeds from the short-term rental operator's or
9
short-term rental marketplace facilitator's business. The
10
Department may adopt rules that establish requirements,
11
including record forms and formats, for records required to be
12
kept and maintained by short-term rental operators and
13
short-term rental marketplace facilitators. For purposes of
14
this Section, "records" means all data maintained by the
15
short-term rental operator or short-term rental marketplace
16
facilitator, including data on paper, microfilm, microfiche or
17
any type of machine-sensible data compilation.

18

Section 30.
Certificate of registration.
It shall be
19
unlawful for any person to engage in business as a short-term
20
rental operator in this State without a certificate of
21
registration from the Department. A certificate of
22
registration issued to the short-term rental operator under
23
the Hotel Operators' Occupation Tax Act shall enable the
24
person to engage in business as a short-term rental operator
25
under this Act without the necessity of registering

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separately.
2

All of the provisions of Sections 2a and 2b of the
3
Retailers' Occupation Tax Act, in effect on the effective date
4
of this Act, as subsequently amended, shall apply to
5
short-term rental operators to the same extent as if those
6
provisions were included in this Act.

7

Section 35.
Tax collected as debt owed to State.
Any
8
short-term rental operator required to collect the tax imposed
9
by this Act shall be liable to the Department for the tax,
10
whether or not the tax has been collected by the short-term
11
rental operator, and any such tax shall constitute a debt owed
12
by the short-term rental operator to this State. To the extent
13
that a short-term rental operator required to collect the tax
14
imposed by this Act has actually collected that tax, the tax is
15
held in trust for the benefit of the Department.

16

Section 40.
Returns.
Except as otherwise provided in this
17
Section, on or before the last day of each calendar month,
18
every person engaged in business as a short-term rental
19
operator in this State during the preceding calendar month
20
shall file a return with the Department, stating:
21

(1) the name of the short-term rental operator;
22

(2) the short-term rental operator's residence
23

address, the address of the short-term rental operator's
24

principal place of business, and the address of the

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principal place of business (if that is a different
2

address) from which the short-term rental operator engages
3

in business as a short-term rental operator in this State
4

(including, if required by the Department, the address of
5

each short-term rental from which rental receipts were
6

received);
7

(3) the total amount of short-term rental receipts
8

received by the short-term rental operator during the
9

preceding calendar month;
10

(4) the total amount of exclusions from the short-term
11

rental excise tax allowed by this Act;
12

(5) the total amount of short-term rental excise tax
13

collected during the preceding calendar month from
14

renting, leasing, or letting short-term rentals during
15

such preceding calendar month;
16

(6) the amount of tax due; and
17

(7) such other reasonable information as the
18

Department may require.
19

If the short-term rental operator's average monthly tax
20
collected and due to the Department does not exceed $200, the
21
Department may authorize the short-term rental operator's
22
returns to be filed on a quarter annual basis, with the return
23
for January, February and March of a given year being due by
24
April 30 of such year; with the return for April, May and June
25
of a given year being due by July 31 of such year; with the
26
return for July, August and September of a given year being due

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by October 31 of such year, and with the return for October,
2
November and December of a given year being due by January 31
3
of the following year.
4

If the short-term rental operator's average monthly tax
5
collected and due to the Department does not exceed $50, the
6
Department may authorize the short-term rental operator's
7
returns to be filed on an annual basis, with the return for a
8
given year being due by January 31 of the following year.
9

Such quarter annual and annual returns, as to form and
10
substance, shall be subject to the same requirements as
11
monthly returns.
12

Notwithstanding any other provision in this Act concerning
13
the time within which a short-term rental operator may file
14
the short-term rental operator's return, in the case of any
15
short-term rental operator who ceases to engage in a kind of
16
business that makes the short-term rental operator responsible
17
for filing returns under this Act, such short-term rental
18
operator shall file a final return under this Act with the
19
Department not more than one month after discontinuing such
20
business.
21

Where the same person has more than one business
22
registered with the Department under separate registrations
23
under this Act, such person shall not file each return that is
24
due as a single return covering all such registered
25
businesses, but shall file separate returns for each such
26
registered business.

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In the return, the short-term rental operator shall
2
determine the value of any consideration other than money
3
received by him in connection with engaging in business as a
4
short-term rental operator and the short-term rental operator
5
shall include such value in the short-term rental operator's
6
return. Such determination shall be subject to review and
7
revision by the Department in the manner provided for the
8
correction of returns.
9

Where the short-term rental operator is a corporation, the
10
return filed on behalf of such corporation shall be signed by
11
the president, vice-president, secretary or treasurer or by
12
the properly accredited agent of such corporation.
13

The person filing the return shall, at the time of filing
14
the return, pay to the Department the amount of tax imposed and
15
collected under this Act. The short-term rental operator
16
filing the return shall, at the time of filing, pay to the
17
Department the amount of tax collected under this Act less a
18
discount of 2.1% or $25 per calendar year, whichever is
19
greater, which is allowed to reimburse the short-term rental
20
operator for the expenses incurred in keeping records,
21
preparing and filing returns, remitting the tax and supplying
22
data to the Department on request.
23

If any payment provided for in this Section exceeds the
24
short-term rental operator's liabilities under this Act, as
25
shown on an original return, the Department may authorize the
26
short-term rental operator to credit such excess payment

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1
against liability subsequently to be remitted to the
2
Department under this Act, in accordance with reasonable rules
3
adopted by the Department. If the Department subsequently
4
determines that all or any part of the credit taken was not
5
actually due to the short-term rental operator, the short-term
6
rental operator's discount shall be reduced by an amount equal
7
to the difference between the discount as applied to the
8
credit taken and that actually due, and that short-term rental
9
operator shall be liable for penalties and interest on such
10
difference.
11

If a short-term rental marketplace facilitator is required
12
to collect and remit the tax under this Act, the provisions of
13
this Section apply to the short-term rental marketplace
14
facilitator as if the short-term rental marketplace
15
facilitator had been the short-term rental operator.

16

Section 45.
Incorporation of Retailers' Occupation Tax Act
17
and Uniform Penalty and Interest Act.
All of the provisions of
18
Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
19
6c, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act
20
and Section 3-7 of the Uniform Penalty and Interest Act that
21
are not inconsistent with this Act shall apply to the renting,
22
leasing, or letting of short-term rentals in this State to the
23
same extent as if such provisions were included in this Act.
24
References in those incorporated Sections of the Retailers'
25
Occupation Tax Act to retailers, sellers, or persons engaged

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1
in the business of selling tangible personal property mean
2
short-term rental operators. References in those incorporated
3
Sections of the Retailers' Occupation Tax Act to purchasers of
4
tangible personal property mean renters of short-term rentals.
5
References in those incorporated Sections of the Retailers'
6
Occupation Tax Act to sales of tangible personal property mean
7
the act or privilege of renting, leasing, or letting
8
short-term rentals as defined in this Act.

9

Section 50.
Allocation of proceeds.
All of the net revenue
10
realized from the tax imposed under this Act for the preceding
11
month shall be deposited each month into the Community Land
12
Trust Fund.

13

Section 55.
Tax paid by renter.
If a renter does not pay
14
the tax imposed by this Act to a short-term rental operator or
15
short-term rental marketplace facilitator, that renter shall
16
file a return with the Department and pay the tax upon that
17
portion of gross charges so paid to the short-term rental
18
operator during the preceding calendar month no later than the
19
last day of the month following that month. Those returns
20
shall be filed on a form prescribed by the Department and shall
21
contain such information as the Department may reasonably
22
require.
23

If a renter pays a tax imposed by this Act directly to the
24
Department, the Department (upon request from the renter)

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1
shall issue an appropriate receipt to the renter showing that
2
the renter has paid the tax to the Department. That receipt
3
shall be sufficient to relieve the renter from further
4
liability for the amount of tax to which such receipt may
5
refer.
6

If it appears that an amount of tax or penalty or interest
7
under this Act has been paid in error to the Department by a
8
renter, as distinguished from the short-term rental operator
9
or short-term rental marketplace facilitator, whether such
10
amount be paid through a mistake of fact or an error of law,
11
that renter may file a claim for credit or refund with the
12
Department.

13

Section 60.
Penalties.
Any short-term rental operator,
14
short-term rental marketplace facilitator, or renter who fails
15
to make a return, or who makes a fraudulent return, or who
16
wilfully violates any other provision of this Act or any rule
17
or regulation of the Department for the administration and
18
enforcement of this Act, is guilty of a Class 4 felony.

19

Section 65.
Rulemaking.
The Department shall adopt rules
20
to implement and administer this Act. The Department may adopt
21
rules in accordance with the Illinois Administrative Procedure
22
Act and prescribe forms relating to the administration and
23
enforcement of this Act as it deems appropriate.

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1

Section 70.
Illinois Administrative Procedure Act adopted.
2
The Illinois Administrative Procedure Act is hereby expressly
3
adopted and shall apply to all administrative rules and
4
procedures of the Department of Revenue under this Act, except
5
that: (1) paragraph (b) of Section 501 of the Illinois
6
Administrative Procedure Act does not apply to final orders,
7
decisions and opinions of the Department; (2) subparagraph
8
(a)2 of Section 5-10 of the Illinois Administrative Procedure
9
Act does not apply to forms established by the Department for
10
use under this Act; and (3) the provisions of Section 10-45 of
11
the Illinois Administrative Procedure Act regarding proposals
12
for decisions are excluded and not applicable to the
13
Department under this Act to the extent Section 10-45 applies
14
to hearings not otherwise subject to the Illinois Independent
15
Tax Tribunal Act of 2012.

16

Section 900.
The State Finance Act is amended by adding
17
Sections 5.1038 and 6z-149 as follows:

18

(30 ILCS 105/5.1038 new)
19

Sec. 5.1038.
The Community Land Trust Fund.

20

(30 ILCS 105/6z-149 new)
21

Sec. 6z-149.
The Community Land Trust Fund; creation.
The
22
Community Land Trust Fund is created as a special fund in the
23
State treasury. The Fund may accept moneys from any lawful

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1
source. Any interest earned on moneys in the Fund shall be
2
deposited into the Fund. Moneys in the Fund shall be used by
3
the Illinois Housing Development Authority for development,
4
staffing, and capacity building and technical assistance
5
related to community land trusts in the State. As used in this
6
Section, "community land trust" has the meaning given to that
7
term in the Community Land Trust Home Ownership Act.

8

Section 905.
The Community Land Trust Home Ownership Act
9
is amended by changing Section 15 as follows:

10

(310 ILCS 130/15)
11

Sec. 15.
Definitions.
As used in this Act:
12

"501(c)(3) organization" means a nonprofit organization
13
that is exempt or qualified for exemption from taxation under
14
Section 501(c)(3) of the Internal Revenue Code of 1986.
15

"Community land trust" means a 501(c)(3) organization
that
16
has as its primary purposes the creation and maintenance of
17
permanently affordable single-family or multifamily residences
18
subject to all of the following criteria:
19

(1) All single-family residences or multifamily
20

residences located on the land owned by the 501(c)(3)
21

organization or its wholly owned subsidiary must be
22

either:
23

(A) sold to a buyer who is qualified under the
24

community land trust's program rules and occupied as

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1

the qualified buyer's primary residence; or
2

(B) rented to a person or persons whose household
3

income does not exceed the maximum allowable gross
4

household income, as determined by the community land
5

trust, for that dwelling or unit.
6

(2) Land that is owned by the 501(c)(3) organization
7

and that contains a single-family residence or multifamily
8

residence that is sold to a qualified buyer described in
9

subparagraph (A) of paragraph (1) shall be leased to the
10

qualified buyer for the buyer's convenient occupation and
11

use, subject to a ground lease with affordability
12

restrictions, for a renewable term of 99 years for the
13

purpose of maintaining dwellings or units that are
14

permanently affordable.
15

(3) In the case of dwellings or units that are part of
16

a condominium, cooperative, or other common interest
17

development and that are located on land that is owned by a
18

homeowners' association or a person other than the
19

community land trust, the condominium unit or interest
20

owned by the community land trust shall be sold to a
21

qualified buyer for the buyer's convenient occupation and
22

use, subject to a deed restriction or affordability
23

covenant that incorporates affordability restrictions for
24

a renewable term of at least 99 years and that is recorded
25

against the unit or interest for the purpose of
26

maintaining dwellings or units that are permanently

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1

affordable.

governed by a board of community land trusts
2

residents, community residents, and public representatives
3

that provide permanent or long-term affordability and
4

shared equity homeownership opportunities.
5
(Source: P.A. 104-370, eff. 8-15-25.)

6

Section 999.
Effective date.
This Act takes effect upon
7
becoming law.

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