Oregon, Illinois Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Oregon, IL?

Short-term rentals are explicitly allowed in Oregon, IL under specific conditions. The City permits short-term rentals (rentals of fewer than 30 days, including Airbnb, Vrbo, vacation rentals, tourist homes, etc.) in R-1 zoning districts as a special use, subject to obtaining a Short-Term Rental permit and meeting all regulatory requirements.

How to Start a Short-Term Rental Business in Oregon, IL

Step-by-Step Process

Verify Zoning Compliance
- Confirm your property is located in R-1 zoning district
- Properties zoned other than R-1 are not permitted for short-term rentals
Prepare Required Documentation
- Complete the Short-Term Rental Application Form
- Gather all required supporting documents (see below)
Submit Application to City Clerk
- Submit completed application with required fees
- New application: $100 for owner-occupied, $250 for non-owner-occupied
Planning Commission Review
- Application undergoes review by the Planning Commission
- Special use permit approval required
City Council Approval
- Final approval required from the City Council after Planning Commission recommendation
License Issuance
- Upon approval, receive your Short-Term Rental license
- Display license within the rental property
Tax Registration
- Obtain IDOR Hotel Operators Tax License Number
- Register with Ogle County for 3% tourism fund tax collection
Annual Renewal
- License renewals due June 1st each year
- Renewal fees: $25 for owner-occupied, $50 for non-owner-occupied

Required Documents, Permits, and Licenses

Essential Documents

Short-Term Rental Application Form (one per property)
Proof of Liability Insurance (minimum $500,000 per occurrence)
IDOR Hotel Operators Tax License Number
Certificate of Insurance evidencing required liability coverage
Property ownership documentation (if different from applicant)

Safety and Compliance Requirements

Carbon Monoxide Detectors installed per city code requirements
Smoke Detectors installed in:
- Each guest room used for sleeping purposes
- Each hallway or corridor on each floor
- Each living room or lounge area
- Each dining room
Bathroom Facilities: At least one bathroom for every four adult guests
Primary Residence Verification (if claiming owner-occupied status)

Business Requirements

Business Registration with appropriate tax authorities
Compliance with all State of Illinois tax laws
Display of license within the short-term rental property
Responsible Party Contact Information for emergency situations

Specific Regulations for Short-Term Rentals

City-Level Regulations (Oregon, IL)

Zoning Requirements:

Short-term rentals only permitted in R-1 zoning districts
Must obtain special use permit from Planning Commission
Properties in historic districts require additional review

Occupancy Limits:

Maximum of four adult guests per bathroom (ratio requirement)
No specific guest limit per property stated, but bathroom ratio governs occupancy

Safety Standards:

Mandatory installation of carbon monoxide and smoke detectors
Compliance with city building and fire codes
Emergency contact requirements

Insurance Requirements:

Minimum liability insurance coverage of $500,000 per occurrence
Certificate must be provided during application process

License Display:

License must be displayed within the short-term rental property at all times

Renewal Requirements:

Annual license renewal due June 1st each year
Failure to renew may result in license suspension

County-Level Regulations (Ogle County)

Tax Collection:

3% tax paid to Ogle County supporting regional tourism fund
Tax collection administered by Ogle County
Additional county-level compliance may apply

State-Level Regulations (Illinois)

Hotel Operators' Occupation Tax:

6% state tax on short-term rentals under 30 days
Total combined tax rate: 9% (6% state + 3% county)
IDOR Hotel Operators Tax License required
Quarterly tax filing may be required

Property Standards:

Compliance with Illinois Property Code standards
Building and safety code compliance
Local health department requirements may apply

Contact Information

City of Oregon - Primary Authority

Oregon City Hall

Address: 115 North 3rd Street, Oregon, IL 61061
Phone: 815-732-6321
Website: cityoforegon.org/short-term-rentals/
Contact Page: cityoforegon.org/contact
Office Hours: Not specified (call for current hours)

Key Contacts:

City Clerk: Primary contact for permit applications
Planning Commission: Reviews special use permit applications
City Council: Final approval authority for permits

Ogle County - Tax Administration

Ogle County Government

Address: Contact via county website for tax registration
Website: www.oglecountyil.gov/
Function: Collects 3% tourism fund tax for short-term rentals

Illinois Department of Revenue

State Tax Authority

Website: www2.illinois.gov/
Function: Issues Hotel Operators Tax License
Requirements: State tax compliance for all short-term rentals

Important Links and Resources

State Resources

Illinois Department of Revenue: www2.illinois.gov/
Ogle County Government: www.oglecountyil.gov/

Compliance Timeline and Important Dates

Annual Requirements

License Renewal Due: June 1st each year
Tax Filing: Quarterly (Illinois Hotel Operators Tax)
Insurance Renewal: As per policy terms

Application Timeline

Processing Time: Not specified, requires Planning Commission and City Council review cycles
Planning Commission Meetings: Contact city for schedule
City Council Meetings: Contact city for schedule

Investment Considerations for STR Operators

Market Characteristics

Allowed Property Types: Single-family and multi-family in R-1 zones
Owner vs. Non-Owner Occupied: Both permitted with different fee structures
Tourism Impact: City actively supports tourism through tax collection fund

Financial Requirements

Initial Investment: $100-$250 application fee plus insurance costs
Annual Operating Costs: $25-$50 renewal fees plus taxes and insurance
Tax Burden: 9% total (6% state + 3% county)

Compliance Risk Factors

Zoning Restrictions: Limited to R-1 districts only
Regulatory Approval: Requires both Planning Commission and City Council approval
Safety Compliance: Stringent detector and facility requirements

This guide provides comprehensive information for investors considering short-term rental operations in Oregon, Illinois. Always verify current requirements with the city before making investment decisions, as regulations may change.

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