Overview: Are Short-Term Rentals Allowed in New Boston, Illinois?

Explicit answer: Yes. Short-term rentals are allowed in New Boston, Illinois. Based on the provided sources, there are no city‑specific short‑term rental (STR) ordinances or permitting regimes identified for New Boston (Knox County). As a result, operators must follow applicable state-level regulations and general Illinois tax rules that apply to lodging businesses. Always verify current local rules with local officials.

How to Start a Short‑Term Rental Business in New Boston

A practical, sequential approach to launch and operate legally in this market:

1. Confirm zoning suitability with local authorities.
   • Ensure the property’s current zoning permits transient lodging or short‑term stays; even where allowed, check for occupancy, safety, parking, and signage limitations.
2. Prepare the property to professional hospitality standards.
   • Install smoke and CO detectors; verify fire safety equipment; adopt safe cooking and egress plans; implement pest control; prepare safety and operations documentation for guests and staff.
3. Secure appropriate insurance.
   • Obtain general liability and property coverage at minimum; consider business interruption, cyber, and host protection endorsements. Verify coverage aligns with your STR use case and platform requirements.
4. Register with the Illinois Department of Revenue (IDOR) and enroll for MyTax Illinois.
   • STRs are considered lodging businesses. Starting July 1, 2025, short‑term rentals booked via platforms like Airbnb and VRBO are subject to the Illinois Hotel Operators’ Occupation Tax (HOOT). Register to collect and remit this tax.
   • Sales tax treatment can vary by scenario (e.g., bedding and cleaning supplies). Consult IDOR or a tax advisor if your operation includes taxable sales beyond HOOT.
5. Add lodging taxes to nightly rates and display them transparently.
   • Combine HOOT (6% of 94% gross receipts) with any applicable local lodging taxes (county/city) and state/local sales tax where applicable. Prepare to collect and remit all due amounts.
6. Comply with platform requirements.
   • Post required notices; follow listing accuracy and local law attestations on Airbnb/VRBO; ensure your STR is compliant with any platform safety or occupancy policies.
7. Prepare guest operations.
   • Draft house rules, check‑in/out procedures, turn‑over workflows, and a guest communications framework; implement a 24/7 contact or local manager arrangement for safety and compliance.
8. Build a compliance calendar and recordkeeping system.
   • Track taxes, inspections, renewals, and guest logs; maintain receipts and transaction records to support audits.
9. Review occupancy and building standards.
   • Confirm maximum occupancy, egress routes, and accessibility expectations; align with Knox County building/fire standards where applicable.
10. Monitor state and local changes.
    • Illinois laws continue to evolve (taxes and lodging rules). Subscribe to IDOR updates and check with the city and county at least annually.

Required Documents, Permits, Licenses, and Guidelines

State-level requirements that apply to New Boston STRs:

• IDOR registration (business tax account) to collect and remit the Hotel Operators’ Occupation Tax on 94% of gross receipts at 6%.
• MyTax Illinois enrollment and online filing/payment access for lodging taxes.
• Recordkeeping for gross receipts, taxes collected, and remitted, including monthly/quarterly filings and annual reconciliations.
• Documentation supporting safety and habitability (e.g., smoke/CO compliance, emergency procedures) and guest communications.
• If the STR sells taxable goods/services beyond lodging (e.g., cleaning supplies, add‑on services), sales tax registration and compliance may be necessary.

Note: No city‑specific short‑term rental permit or license is evidenced in the provided sources for New Boston. However, verify with the City and County for any newly adopted requirements.

Specific Regulations: City, County, and State

City of New Boston

• No city‑specific STR ordinance or permitting scheme is identified in the provided sources; STRs appear to operate under general state rules and local zoning. Operators should still confirm any local licensing or safety inspection expectations with the City.

Knox County

• No Knox County STR permit program or local lodging tax detail is identified in the provided sources. Confirm with the County whether a lodging tax applies and whether building/fire inspections are required for STRs.

State of Illinois

• Hotel Operators’ Occupation Tax (HOOT) applies to short‑term rentals effective July 1, 2025. The tax is 6% of 94% of gross lodging receipts. STR owners/operators are responsible for payment and may pass the tax to guests.
• This tax applies in addition to any local lodging taxes and state/local sales tax that may be due in specific circumstances.
• Definitions: Short‑term rentals are generally considered lodging accommodations rented for less than 30 days. Hosts must meet the state’s registration and reporting standards for lodging businesses.

Action item: Confirm any additional local lodging taxes (city/county) and whether New Boston has adopted a local hotel tax or administrative requirements not captured in the provided sources.

Taxes Applicable to New Boston STRs (Effective July 1, 2025)

• State Hotel Operators’ Occupation Tax (HOOT): 6% of 94% of gross receipts. Applies to short‑term rentals booked via platforms like Airbnb/VRBO and direct bookings.
• Local lodging taxes: Possible county/city taxes. Not confirmed in the provided sources; verify with Knox County and the City of New Boston.
• Sales tax: May apply if the STR sells taxable goods or services beyond lodging; consult IDOR based on your specific offerings.

Contact Information

Local authority (City of New Boston; for zoning and local confirmations)

• Phone: Not available in provided sources
• Email: Not available in provided sources
• Website: Not available in provided sources
• Notes: Contact the City Hall or Planning/Zoning department to verify whether any local licenses, occupancy limits, or inspections apply to STRs.

County authority (Knox County; for lodging taxes and potential building/fire standards)

• Phone: Not available in provided sources
• Email: Not available in provided sources
• Website: Not available in provided sources
• Notes: Confirm whether Knox County imposes a local lodging tax and whether STRs must comply with any building or fire inspections.

State authority (Illinois Department of Revenue; for HOOT registration and filing)

• Phone: Not available in provided sources
• Email: Not available in provided sources
• Website: Not available in provided sources
• Notes: Register and file via MyTax Illinois. Consult IDOR for sales tax applicability if you sell taxable items/services in connection with your STR.

Important Compliance Notes

• Platform data reporting and enforcement can materially affect active listings and compliance behavior in Illinois markets. Ensure your listing details match your filings and local laws to minimize enforcement risk.
• Monitor Illinois legislative updates annually; the state continues to refine tax and lodging rules.
• If you manage multiple units or operate professionally, consider standard operating procedures for safety, cleaning, guest screening, and complaint handling to protect your license to operate.

Source Pages (Links)

• CBS News Chicago: New Illinois laws and taxes starting July 1, 2025 (includes HOOT applicability to Airbnb/VRBO). www.cbsnews.com/chicago/news/new-illinois-laws-taxes-2025-july-1/
• Booking.com: Laws and regulations for short-term rentals (includes a general Illinois link for Chicago). partner.booking.com/en-us/legal-resources/laws-and-regulations-short-term-rentals
• NBER Working Paper: The Effects of Short‑Term Rental Regulation: Insights from Chicago (provides broader Illinois context). www.nber.org/system/files/working_papers/w32537/w32537.pdf
• AirDNA Blog: What’s considered a short‑term rental? (general definitions and host considerations). www.airdna.co/blog/what-is-considered-a-short-term-rental

Last updated: Based on the provided content; verify with local/state authorities for the most current rules and contact information.