Executive overview

• Are STRs allowed in Monticello, IL? Short‑term rentals (STRs) are allowed as “Bed and Breakfast Establishments” provided the residence is operator‑occupied and has no more than five guest rooms; breakfast may be served only to guests. Motels, hotels, boarding houses, and food service establishments are separate categories and are not considered B&Bs for zoning purposes. Municipal zoning dictates where a B&B may operate; it must be a permitted or conditional use in the subject zoning district. See “Zoning allowances by district” and “Permitting pathway” below.

Scope and limitations

• City-specific STR licensing/registration is not identified in the provided materials. Monticello’s zoning ordinance (2008‑56) governs land use for B&Bs; other permits (e.g., building, health/sanitation) and taxes apply at the state and county levels as applicable. The state‑level 10% hotel tax and state sales tax apply to lodging in Illinois. Contact the City for current processes/requirements.

1) How to start an STR in this market

Permitting pathway (typical sequence)

1. Confirm zoning district and eligibility

   • Verify the property’s zoning (e.g., RS, RU, RC, RE‑1, RM) using Monticello’s official zoning map and the “Table I — Principal Uses by Zoning District” (see below).
   • Confirm a Bed and Breakfast is allowed as Permitted (X) or Conditional (C) in that district.
   • For conditional uses, apply for a conditional use permit through the Planning Commission process.

2. Secure zoning approvals

   • Prepare and file a conditional use application (if required), with site plan and supporting materials.
   • City Council issues the conditional use permit after Planning Commission recommendation and public hearing.

3. Apply for building/occupancy/zoning permits

   • Submit plans and applications to the Building and Zoning Administrator for deck/porch/patio, fence, and similar permits as applicable to your operation (these are required when substantial alterations occur).
   • Confirm any life‑safety requirements (e.g., smoke detectors, egress, egress lighting) that may arise during plan review.

4. Register for state and county taxes

   • Register for and collect:
     • Illinois Sales Tax (current statewide rate 6.25%, with local add‑ons).
     • Illinois Hotel Operators’ Occupation Tax (HOOT) at 10% on room charges ( remit monthly).
   • Confirm any Piatt County local hotel taxes (if applicable).

5. Launch and ongoing compliance

   • Limit guest rooms to five or fewer.
   • Maintain operator occupancy (you must live in the property).
   • Keep records for taxes, and for any city/conditional use conditions.
   • Maintain insurance adequate for short‑term guest operations.

Notes for investors

• Where a B&B is a Permitted use (X), proceed directly to building/occupancy and tax setup. Where Conditional (C), budget time and cost for hearings and conditions.
• If your concept resembles a motel, hotel, or boarding house, it does not qualify as a B&B under the zoning ordinance and would not be eligible under this pathway.

2) Required documents, permits, licenses, and guidelines

Documents commonly required

• Zoning/conditional use application (if required) with site plan and owner authorization.
• Building and zoning permits for structures/alterations (e.g., deck, porch, patio).
• Sales Tax registration (Illinois Department of Revenue).
• Hotel Operators’ Occupation Tax registration (Illinois Department of Revenue).
• Evidence of zoning district and B&B eligibility (plot plan, photos, floor plan, room count).
• Insurance certificates appropriate for lodging operations.

Permits and licenses

• Conditional Use Permit (City Council, after Planning Commission) — required if “C” in Table I.
• Building/zoning permits for decks, patios, porches, fences — per Monticello Code §153.038 (fences), §153.039 (decks/patios/porches).
• Health/sanitation and life‑safety approvals as determined by plan review.
• State/local tax registrations (see above).

Guidelines to follow

• B&B definition: operator‑occupied residence, no more than five guest rooms, breakfast served to guests only.
• Do not operate as a motel/hotel/boarding house; zoning treats those as distinct categories.
• Respect district setbacks, lot coverage, and parking requirements; parking is addressed district‑by‑district in the zoning code.
• Follow fence, deck, patio, and porch standards for safety, visibility, and drainage.

3) Zoning allowances by district (Table I — Principal Uses)

From the City of Monticello Ordinance 2008‑56 (Exhibit A):

• Bed and Breakfast: “X” = Permitted by right; “C” = Conditional use permit required.

Zoning districts and B&B status

• RU — RC — RE‑1 — RS — RM — B — I‑1 — IC — RE‑2 — RD — All other districts in Table I
• Status: X in RU, RC, RE‑1, RS, RM, B; “—” (not listed) in I‑1, IC, RE‑2, RD. If not shown as permitted or conditional, it is not an authorized principal use in that district.
• If a district is not listed in Table I for B&B, the use is not allowed as a principal use unless the ordinance is amended.

Implications for investors

• RS (Suburban Residential), RU (Rural Residential), RC (Conservation Residential), RE‑1 (Low‑Density Residential), RM (Multi‑Family Residential), and B (Business) allow B&B either by right or conditionally.
• I‑1 (Industrial) and IC (Industrial‑Commercial) do not show B&B as a principal use; operations resembling lodging are not permitted there under this ordinance.

Additional zoning references

• Lot area, yard, and bulk standards — see Table II of the zoning ordinance for each district.
• Accessory buildings and structures — see §153.035; accessory buildings may not be used for dwelling purposes.
• Parking — minimums vary by use (e.g., hotels/motels have specific parking requirements; see Table III).

4) Regulations specific to Monticello (city), Piatt County (county), and Illinois (state)

Monticello (city)

• Zoning ordinance (2008‑56) regulates land use; B&Bs are defined as operator‑occupied residences with five or fewer guest rooms; breakfast provided to guests only; separate from hotels/motels/boarding houses.
• Conditional uses require approval by City Council after Planning Commission hearing.
• Building/zoning permits are required for decks, patios, porches, and fences per §§153.038 and 153.039.
• Board of Zoning Appeals has variance authority; variances may be considered only if a genuine and unique hardship would result from strict application of the zoning regulations.

Piatt County (county)

• County‑specific STR regulations are not provided in the content. Any county zoning or health requirements may apply to unincorporated areas; the City of Monticello’s municipal code governs within city limits.

Illinois (state)

• Sales tax: 6.25% statewide base; localities may add additional rates. Register with the Illinois Department of Revenue.
• Hotel Operators’ Occupation Tax (HOOT): 10% on gross rental receipts for lodging; register and remit monthly to the Illinois Department of Revenue.
• Local hotel taxes may apply (confirm with county or local tax administrator).
• Building, fire, and life‑safety codes apply at the local level through plan review and inspections.

5) Contact information (local authority)

• City Administrator (primary municipal contact for permitting/land use questions)

  • Name: Terry Summers
  • Address: 210 N. Hamilton St., Monticello, IL 61856
  • Phone/email: Not provided in the content; contact City Hall for current information.

• Building and Zoning Administrator (plan review, permits)

  • Department: Building & Zoning Department
  • Location: City Hall (same address as above)
  • Phone/email: Not provided in the content.

• City Clerk (records, public notices)

  • Name: Jill Potts
  • Phone/email: Not provided in the content.

Recommended next step

• Call City Hall (210 N. Hamilton St., Monticello, IL 61856) to confirm current contacts, permit intake procedures, and any local registration requirements for Bed & Breakfast operations.

6) Source links and documents

• City of Monticello Zoning Ordinance (2008‑56) — amendments to Chapter 153 of the Municipal Code: www.cityofmonticello.net/Archive/ViewFile/Item/592

• City of Monticello Ordinance No. 2021‑50 (Lease — 315 East Center Street): www.cityofmonticello.net/AgendaCenter/ViewFile/Item/5709?fileID=3620

Compliance checklist for investors

• Confirm zoning district allows Bed and Breakfast (X or C).
• If “C,” file conditional use application and attend hearings.
• Secure any required building/zoning permits (decks, porches, patios, fences).
• Register for Illinois Sales Tax and Hotel Operators’ Occupation Tax.
• Limit to five guest rooms; maintain operator occupancy; serve breakfast to guests only.
• Maintain insurance and records; comply with city conditions if a conditional use permit is issued.