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Finance Committee moves forward with short-term rental tax

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After representatives from Visit Kankakee County gave a presentation on short-term rentals in unincorporated Kankakee County, the Finance Committee on Wednesday unanimously moved forward a measure to amend the county code on the hotel tax.

The Kankakee County Board will vote at its next meeting Dec. 9 on whether to include short-term rentals in the county code that assesses a 5% hotel tax. There are only two hotels in unincorporated Kankakee County.

Nicole Gavin, executive director of Visit Kankakee County, and Angelina Gear, the organization’s sales and marketing manager, gave a slideshow presentation to the committee that showed there are 25 properties in the county, outside other municipalities, that operate as an Airbnb or Vrbo. Those properties would generate about $2,790 in taxes per month, or $33,480 per year.

“That tax is paid for by the visitor,” Gavin said. “It’s not paid by the residents here. It’s not paid for by the short-term rental owner. It is like 5% added on, and it’s paid for, again, by the visitor. This has been happening all across the state [and] throughout the country. I’m sure if you stayed in Airbnbs or hotels, you’re paying those taxes as well.”

Those taxes would go directly to the county, as Kankakee County is part of an intergovernmental agreement where it pays $70,000 to help fund Visit Kankakee County. The formula is $60,000 plus $5,000 for each hotel.

Currently, the short-term rentals are not paying the 5% tax. Gavin said the county collected about $65,000 in hotel tax in 2024.

She added that in 2024, those 25 short-term rental units generated $2 million in total stays and are projected to surpass $3 million this year.

“People are choosing short-term rentals over hotels,” Gavin said.

Board member Steve Hunter asked what the properties get from Visit Kankakee County in terms of marketing.

Gear said Visit Kankakee County has talked recently with one of the Airbnb operators who has a property along the Kankakee River.

“We’ve been able to create itineraries, connect her with other small-business owners in the community to create experiences for these guests,” she said. “If the county decides to collect the short-term rental tax, that’s another thing through your membership with Visit Kankakee County that you would receive from us. We could partner stronger with these rental properties to attract more visitors here.

“We can create a landing page on our website. We can work with them directly to market those residences, create experiences for guests and boost our local visitor economy.”

Board member Rosemary Foster said it’s a “win-win” for the county and the short-term rental operator.

Zoning

The committee also amended the resolution to include that the short-term rental properties have the proper zoning requirement with a special-use permit. Delbert Skimmerhorn, director of planning for Kankakee County, said only two of the 25 properties mentioned are properly zoned.

“They pop up all the time,” Skimmerhorn said. “It doesn’t take much to get it listed on Vrbo or Airbnb. It’s a never-ending fight for us. So yes, they do need proper zoning.”

Christopher Breach

Christopher Breach - Shaw Local News Network correspondent

I'm the associate editor as well as the editor of the business and opinion sections. I'm a graduate of Indiana University and have more than 30 years of experience in newspapers.