Airbnb operators will soon be taxed the same as hotels and traditional bed-and-breakfast operators, following approval of a new 4-percent tax by the Oak Park Board of Trustees.
The tax was originally requested by Oak Park’s B&B operators, and village trustees agreed that taxing the businesses equally would create a level playing field for the businesses.
It is uncertain how much the tax will generate, because it is unknown exactly how many Airbnbs are operating in the village, according to Tammie Grossman, director of development customer services for the village.
The tax revenue is earmarked for the village’s tourism and marketing efforts, but Trustee Adam Salzman questioned whether the new money should be directed to Visit Oak Park, the village’s lead partner agency that promotes tourism. The village’s budget line item for Visit Oak Park is currently $212,000, Grossman said.Â
Visit Oak Park not only promotes Oak Park but several other municipalities in the western suburbs. The village’s funding of the partner agency makes Visit Oak Park eligible for tourism matching funds from the state of Illinois.
“This was a close call for me,” Salzman said. “I don’t have a problem with the tax. It establishes parity between Airbnb [operators] and other bed and breakfasts in town. My issue is with imposing a tax to meet a contractual obligation to a partner agency.”
Salzman suggested the board, at some point, consider the option of directing the new funds elsewhere.
“I don’t think we’re strategic enough in how we promote the village,” Salzman said.
CONTACT: tim@oakpark.com