Council Approves Software Purchase to Assist with Collection of Short-Term Rental Taxes

To improve compliance with short-term rental regulations and ensure the collection of required hotel/motel taxes, the City Council approved a professional services agreement with Granicus to purchase Short-Term Rental Compliance software. The annual subscription cost is $6,146.

According to City of North Chicago staff in the Economic and Community Development Department, which oversees landlord licensing, there are an estimated 25 to 35 short-term rental properties operating within the city. Currently, only about 10% of these properties comply with the city's landlord licensing requirements, and none are remitting the hotel/motel taxes required under City Code.

Identifying and documenting noncompliant properties has been a significant administrative challenge. Granicus, a leading provider of technology solutions for local governments, uses software that scans online short-term rental listings to identify properties, document booking activity, and track advertised rental rates.

This information provides city staff with the evidence needed to enforce the City's short-term rental ordinance more effectively. The additional compliance and tax revenue generated through improved enforcement is expected to offset the annual cost of the software subscription.