Overview: Are STRs allowed in Carlyle, IL?

• Allowed. Clinton County’s codified ordinances (the county that governs Carlyle) do not include any ban on short-term rentals. The Code contains county-level business regulations and zoning administration but no STR‑specific prohibition. No city-level ordinance in the provided materials restricts STRs; therefore, STRs are permissible subject to general business licensing, zoning, health and safety, and tax compliance.

How to start a short-term rental business in this market

1. Confirm zoning and use compliance

• Verify the property’s zoning district allows lodging or “public accommodations.” The Zoning Administrator administers zoning, floodplain, and subdivision codes.
• If renting a room within an owner‑occupied dwelling, typical zoning interpretations allow the principal use to continue; renting entire dwellings or adding a separate STR unit may require a zoning review or special use.

2. Apply for any required business license/permit

• County-level: Chapter 7 (Business Regulations) exists in the Clinton County Code, and Section 1‑1‑5 confirms the Code applies within county jurisdiction. Contact the County Clerk or Zoning Administrator to confirm whether a business license, public accommodations registration, or similar local approval is required.
• City-level (Carlyle): No city‑specific STR license is identified in the provided content. If Carlyle has an municipal business license, obtain it.

3. Meet health and safety requirements

• Comply with the Health Regulations (Chapter 18) and public safety provisions (Chapter 30).
• Ensure smoke and carbon monoxide detectors, posted emergency egress, and basic habitability standards appropriate for transient guests.

4. Register for taxes

• State sales tax: Register with the Illinois Department of Revenue (IDOR). Short‑term lodging is taxable under the state’s Use Tax Act.
• County hotel/motel tax: Clinton County has a Motel Tax (see Chapter 36, “Taxation”). Register, file returns, and remit as required.
• Local municipal taxes (if any in Carlyle) should be confirmed before opening.

5. Establish internal policies

• Adopt guest rules covering occupancy, noise, parking, smoking, pets, and trash. Maintain a guest handbook and 24/7 contact for issues.
• Document cleaning, turnover, and maintenance standards; require vendor compliance with county health guidance where applicable.

6. Insurance and taxes

• Obtain adequate liability and property coverage; consider short‑term rental endorsements or specialty policies.
• Track income and expenses for federal and state reporting; comply with sales and hotel/motel tax filing deadlines.

Required documents, permits, licenses, and guidelines

• Zoning verification letter or approval (contact Zoning Administrator).
• Business license or public accommodations registration (if applicable under Chapter 7; confirm with County Clerk/Zoning Administrator).
• Health and safety compliance acknowledgment (Chapter 18 and Chapter 30 guidance).
• State sales tax registration (IDOR) and any required state filings.
• County hotel/motel tax registration/returns (Chapter 36).
• Insurance coverage (general liability, property, and STR rider/endorsement).
• Guest policies, house rules, and emergency contact procedures.

Specific regulations affecting STRs: city, county, and state

• City (Carlyle): No city‑specific STR ordinance is identified in the provided content. Proceed under county rules unless city requirements are enacted.
• County (Clinton County):
  • Business Regulations (Chapter 7) governs local business operations. If a business license or public accommodations registration is required, this chapter provides authority.
  • Zoning Code (Chapter 40) governs land use and districts. The Zoning Administrator administers zoning, floodplain, and subdivision compliance. STRs must conform to the district’s permitted or special uses.
  • Health Regulations (Chapter 18) set standards for sanitation and public health relevant to transient lodging.
  • Public Safety (Chapter 30) covers emergency management, public protection, and related safety requirements applicable to lodging operations.
  • Taxation (Chapter 36) includes the Motel Tax, which applies to short‑term lodging operators; you must register, collect, and remit.
  • General Penalty (Section 1‑1‑20) authorizes fines for violations of county ordinances.
• State (Illinois):
  • Sales/Use Tax: Short‑term lodging is taxable; register and collect state sales tax on room rentals via IDOR.
  • Hotel Operators’ Occupation Tax (35 ILCS 145/): Operators with gross receipts from lodging must register and pay this tax to the state; returns are generally filed through IDOR.
  • Hotel Tax (35 ILCS 145/3): Imposes an additional tax on lodging; state collection/remittance is required.
  • Local Hotel Tax: Clinton County has a countywide Motel Tax; operators must also comply with county filing/remittance.
  • Health/Safety: While not detailed in the provided code, Illinois law generally requires safe premises, posted egress plans, and compliance with fire and building safety standards for transient lodging.
  • Registration/Tax Remittance: Under state law, lodging providers generally must register with the Department of Revenue and file returns for state sales tax and the Hotel Operators’ Occupation Tax.

Contact information (local authority)

• Clinton County Zoning Administrator
  • Office: Zoning Department (administering zoning, floodplain, and subdivision)
  • Note: Appointed by County Board Chairman with County Board consent; primary point for zoning and use compliance
• Clinton County Clerk (licensing/business filings)
  • Mary Rakers, County Clerk
  • Location: Clinton County Courthouse, Carlyle, IL
  • The Clerk’s office issues various county licenses/permits; confirm whether a business license/registration is required for lodging
• State of Illinois – Department of Revenue (tax registration/filings)
  • Website: tax.illinois.gov

Links to source pages (as provided)

• Clinton County, Illinois – Complete Code of Ordinances (2019 edition): www.clintonco.illinois.gov/wp-content/uploads/COMPLETE-CODE.pdf
• Illinois Department of Revenue (sales tax, hotel taxes): tax.illinois.gov

Notes for investors

• The county code does not provide an explicit STR ordinance; compliance rests on general business, zoning, health/safety, and tax frameworks.
• If the property is within Carlyle’s municipal limits, confirm with the City Clerk whether city-level business licensing or taxes apply in addition to county requirements.
• Always verify current requirements with the Zoning Administrator and County Clerk before opening.