Evanston Airbnb Taxes To Be Automatically Collected

EVANSTON, IL — Short-term rental company Airbnb will start collecting Evanston taxes automatically next month. Starting Feb. 1, Airbnb will automatically collect and remit Evanston's Hotel/Motel and 7.5 percent Vacation Rental Tax.

The City Council updated its tax rules to include short-term vacation rentals at its Nov. 27 meeting. Mayor Steve Hagerty broke a 4-4 tie among aldermen to support the change. Further changes were made to the ordinance and adopted unanimously at the Council's Jan. 8 meeting. Evanston's law department has not responded to requests for an explanation of the changes.

The process will be "seamless and easy," according to a joint news release from the company and city.

“Our hosts want to pay their fair share, and we want to help,” said Airbnb's Illinois policy director, Will Burns.

“Our Evanston host community provides a tremendous service to the City by allowing more visitors to stay in Evanston and spend money with local businesses," he said. "This tax agreement will only enhance the economic impact by delivering a brand new revenue stream for the City.”

According to the release, Airbnb has remittance agreements with more than 350 local governments in the U.S., including Chicago and three other local suburbs.

The company projected that it will remit $83,000 in additional revenue to the city as a result of the amended ordinance and tax agreement. It said it supported Evanston's move to cover short-term rentals under the same tax rules of hotels.

Short-term rentals "delivered significant value" to Evanston last year, according to the release. It notes that vacation rental units expand the cities capacity to house visitors when major events fill Evanston's four hotel.

The city's largest surge of users on the platform coincided with Northwestern's commencement ceremony last June, according to Airbnb.

In 2017, about 180 Evanston residents earned $1.26 million in total from about 7,000 guests, according to the company.

It argued data backs up its claims that short-term rentals are opening up Illinois to new groups of potential visitors – including those for whom hotels are less affordable, those who want to stay in neighborhoods without hotels and family who would rather stay in the same location.

“Home sharing allows even more visitors to stay in our community, patronize local businesses, and experience all that Evanston has to offer," said Mayor Steve Hagerty in the release. "I'm pleased that Airbnb has made it easy for hosts to share their homes while also contributing to the tax base and the vitality of Evanston.”

_{Top photo via Getty Images News | Carl Court | Getty Images}