Note: This guide is a concise, practical roadmap based on the provided documents and the explicit absence of short‑term rental (STR)–specific regulations in the City of Petersburg Code of Ordinances. It flags what you must do under state law and general municipal frameworks. It is not legal advice. Always verify with the City Clerk, City Hall, and the City Attorney before commencing operations.

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

• Explicit answer: The City of Petersburg Code of Ordinances provided contains no short‑term rental–specific regulations (no licensing, registration, occupancy limits, safety standards, or tax rules specific to STRs).
• What this means for investors: At the city level, there are no explicit prohibitions or requirements in the provided materials. However, general zoning, building, fire, health, and business licensing provisions still apply. STR operations must comply with any applicable zoning use permissions for the subject parcel and state-level occupancy and tax obligations.
• Practical implication: You must conduct zoning due diligence to confirm STR use is permitted at your specific property (single-family vs multi‑unit; principal residence vs non‑principal; all matters of density and parking). You must also comply with state-level lodging taxes and potentially register with the Illinois Department of Revenue if your gross receipts are at or above the statutory threshold.

How to Start a Short-Term Rental Business in This Market

1. Site and zoning verification

   • Confirm STR or “lodging” use is permitted in the zoning district of your property. The City’s zoning map is incorporated into city planning documents; if STR use is not explicitly listed as a permitted principal or accessory use, request a determination from the City (City Clerk coordinates formal applications and the City Attorney advises).
   • Review deed restrictions and HOA covenants if applicable. Private covenants can be more restrictive than municipal rules.
   • Verify whether the property is in a floodplain (Chapter 9.5 addresses Floods in the Code). If it is, additional disclosures and insurance may be required. Consult your lender and insurance agent.

2. Business licensing and registration (general framework)

   • Obtain any required local business license(s) for operating a lodging business. Chapter 13 (Licenses, Business Regulations and Taxation) covers licenses, and the City Clerk issues licenses, bonds, permits, and certificates (§ 2‑82). You will likely need to apply through the City Clerk.
   • If you employ staff, review Chapter 8 Personnel Policies for compliance with city employment rules (hiring, benefits, etc.), though these are city employment obligations, not STR-specific rules.
   • If serving alcohol on the premises, obtain the appropriate liquor license under Chapter 4 and comply with hours and conduct rules (e.g., §§ 4‑3, 4‑9–4‑11; sidewalk café permits may apply).

3. Safety and habitability (standard building/fire/health compliance)

   • STRs must meet applicable building, fire, and health standards. The Code sets a baseline: property safety (including egress and fire safety) and public health provisions (Chapter 20) will likely apply even if not STR‑specific. Comply with smoke detector, carbon monoxide detector, and posted egress rules consistent with Illinois law and local inspection requirements.

4. State-level registration and taxes

   • Hotel Operators’ Occupation Tax (HOOT): Illinois imposes HOOT on gross receipts from lodging. If your gross receipts reach the state threshold (set by IDOR, see below), register as a hotel operator, collect, and remit HOOT.
   • Local taxes: Comply with any applicable local lodging taxes imposed by Menard County or other local authorities. These are separate from city-level taxes unless the City imposes its own lodging tax ordinance (none found in the provided Code).
   • Collection and recordkeeping: Implement secure collection mechanisms and robust records. Prepare for audits.

5. Taxes and reporting

   • City-level taxes: The Code does not show a local lodging tax or separate municipal tax regime for STRs in the provided document. Confirm with the City Treasurer (Chapter 6) and City Clerk whether any municipal taxes apply or will be added in the future.
   • State reporting: File HOOT returns with IDOR per their filing frequency (monthly/quarterly/annual depending on volume). Keep guest logs, invoices, and proof of remittance.

6. Operations and guest policies

   • Draft house rules governing quiet hours, maximum occupancy, parking, and use of the property. In an STR, enforceable rules and visible disclosures help mitigate nuisance complaints and code violations.
   • Post emergency contact information and safety instructions. Maintain local presence or reliable property management to respond to calls and inspections.

7. Insurance and risk management

   • Secure appropriate liability coverage that recognizes STR exposure (premises liability; short-term guest risk). If offering alcohol, confirm dram shop coverage and liquor license status.

Required Documents, Permits, Licenses, and Guidelines

Local (City of Petersburg)

• Application for any business license applicable to lodging operations (Chapter 13; processed by City Clerk per § 2‑82).
• If the City implements STR-specific permitting in the future, obtain that license, and any associated fees, when enacted.
• If offering alcohol, obtain the relevant liquor license under Chapter 4; comply with hours of sale (§ 4‑3) and conduct rules (e.g., no loitering by intoxicated persons under 21, § 4‑9; no possession/consumption on public rights-of-way unless authorized, § 4‑10; sidewalk café rules, § 4‑11).
• Building/fire compliance letters and any inspection documentation as required by local standards (general compliance with building and fire codes referenced in the Code).
• Floodplain compliance documentation if applicable (Chapter 9.5).

State (Illinois)

• Hotel Operators’ Occupation Tax registration with the Illinois Department of Revenue (IDOR). File and remit per IDOR guidance and thresholds.
• Compliance with relevant Illinois statutes governing lodging facilities (e.g., posting requirements, occupancy, and health standards at the state level).

Recommended internal documentation

• House rules, occupancy limits, parking rules, and posted guest information.
• Guest logs and ledger of collections (for HOOT and local lodging tax compliance).
• Insurance policies evidencing liability and property coverage appropriate for STR operations.

Specific Regulations: City, County, and State

City of Petersburg (explicit findings from provided Code)

• No STR‑specific ordinances. The Code lacks provisions for STR licensing, registration, occupancy caps, safety certification, or local lodging tax. STR operators must rely on general business, zoning, building, fire, health, and traffic regulations.
• General penalty: $500 per violation; each day a violation continues constitutes a separate offense (§ 1‑8).
• Licensing: Chapter 13 governs business licenses; the City Clerk issues licenses/permits (§ 2‑82). If you conduct business as an STR, expect to obtain any applicable business license(s).
• Zoning: Appendix A incorporates zoning. Because the provided materials do not show the zoning text, verify that lodging/STR is a permitted use in your district and that any accessory‑use limitations do not apply.
• Alcohol: If you serve alcohol, comply with Chapter 4 licensing and conduct rules.
• Floodplain: Chapter 9.5 includes floodplain management provisions. If within a floodplain, additional disclosures and insurance considerations apply.

Menard County

• No county-level STR regulations are provided. County lodging taxes may apply. Confirm directly with the Menard County Treasurer or County Clerk whether lodging taxes apply and how to remit.

State of Illinois

• Hotel Operators’ Occupation Tax (HOOT) applies to gross receipts from lodging. Register with IDOR when gross receipts meet or exceed the threshold. File returns and remit tax according to IDOR cadence.

Important practical note

• Since the City has no STR ordinance in the provided materials, check with the City Clerk and City Attorney to confirm there are no pending or unpublished amendments that could impose STR registration, permit, or reporting requirements. It is common for municipalities to evolve toward more STR oversight; plan for change.

Contact Information (Local Authority in Charge of STRs)

Given the absence of a designated STR department in the provided Code, start with the City Clerk (issues licenses/permits) and the Mayor (chief executive). Council oversight is via the City Council; Committee on Buildings and Grounds may become relevant if inspections or infrastructure matters arise. Use City Hall contact channels for routing.

• City Hall (City Clerk’s Office)
  • Address: City Hall (location per City records)
  • City Clerk (licenses, permits, and certificates): Dorothy Morgan (as listed in Code; consult City Clerk for application intake)
  • City Treasurer: David Frick (per Code; may handle tax-related inquiries)
  • Mayor: John Stiltz (chief executive; policy and oversight)
  • City Council: Aldermen Stacy Frick, Bruce Gorman, Ray Jordan, Kevin Molohon, Ken Ortman, Keith Wilson (per Code)
  • Standing committee relevant to STRs: Committee on Buildings and Grounds (per § 2‑66)
• Phone and email: Not provided in the supplied Code. Contact City Hall to obtain current phone/email for the City Clerk’s office and Mayor’s office.
• Website: www.petersburgil.org
• Illinois Department of Revenue (state lodging tax registration): Register and file online via the IDOR portal. Direct contact information is available on the IDOR website; the hotline and portal links are updated regularly.

Links to Source Pages (if available)

• City of Petersburg Code of Ordinances (2017): www.petersburgil.org/documents/328/ORDINANCE_BOOK_2017.pdf?1596214166
• City website: www.petersburgil.org

Practical checklist for investors:

1. Verify zoning uses and floodplain status.
2. Obtain any required local business license(s) through the City Clerk.
3. Register with IDOR and set up HOOT collection/remittance (if threshold met).
4. Confirm whether county or other local lodging taxes apply and enroll accordingly.
5. Establish house rules, safety measures, and guest communications.
6. Purchase appropriate insurance for STR exposure.
7. Maintain records for taxes and inspections; prepare for policy changes.

This guide reflects what is expressly in the provided materials. If the City later adopts STR-specific rules (permitting, registration, occupancy caps, safety standards, local lodging tax), those will supersede general provisions and must be observed.