Owners of short-term rentals in Manteno are keeping an eye on a potential new tax that could be assessed if the village board brings it up for a vote and approves it. Currently, it is not on the board’s agenda, though it could be added to it in the future.
To implement the tax, the Village of Manteno would need to establish an ordinance through a vote by the board. The village would collect the tax and use the funds within the village.
The idea of the tax was first raised by concerned business owner Tiffany Parpart, at the October 20 board meeting and then addressed at the following meeting on November 3 by Visit Kankakee County Executive Director Nicole Gavin.
The tax has been a topic at the Visit Kankakee County Board of Directors’ meeting, and Gavin has reached out to board members, she explained in a follow-up email.
It’s important to note the tax would be a separate, additional tax on top of the state’s 6 percent Hotel Operators’ Occupation Tax (HOOT), which was recently expanded this past July to include other short-term rentals, like Airbnb. The HOOT tax had previously only been levied on hotels, of which there are two in Manteno.
The new local short-term rental tax, which could be a boon for the village but a bane for renters and rental owners worried the tax could deter business, has not yet been discussed by the village board.
“I want to be really clear on this. It’s not a tax on Manteno residents or the business owners. It’s not paid by the host, the property owner, or the village. It’s paid entirely by the visitor,” Gavin explained to the board during the meeting, citing several Illinois communities that had instituted such a tax.
The short-term rental tax, if assessed, could be up to 5 percent, which is the maximum tax a non-home-rule community could assess.
Gavin provided AirDNA estimates of an additional $20,000 in revenue, which she said she felt were conservative.
“I shared that this revenue stream is an incredible opportunity, because it’s paid by the visitor – not the property owner, the village, or the residents,” Gavin said by email.
Still, some Manteno rental owners, like Parpart, are concerned.
“Most of our local businesses and short-term rentals didn’t ask for this tax or this partnership. Decisions that affect local owners and guests should include their voices,” Parpart said to The Vedette.
“I am not in support of this tax, even if the burden technically falls on customers,” Parpart said in a statement provided to The Vedette and later shared on Facebook.
Parpart added she felt the village should focus on making Main Street more consumer-friendly and, despite having a “great respect for Nicole Gavin and her work in Kankakee County,” Parpart didn’t see the value of the village’s partnership with Visit Kankakee County.
At the board meeting where Parpart spoke, she cited low turnout from the organization’s last event.
“Results show Manteno struggles to keep consumable businesses as a Main Street focus. Why don’t we direct some energy there?” Parpart questioned.
The Vedette inquired with the board members to learn their preliminary thoughts. Trustees C.J. Boudreau and Joel Gesky responded before press deadline. Trustee Peggy Vaughn’s email came back undeliverable.
“Do I think it’s a bad thing? No, the hotels are being charged that and hotel patrons are being charged that. If we’re trying to make sure business is fair among all, why tax hotel patrons and not those at a VRBO?” Gesky questioned.
Still, Gesky said he’s open to hearing everyone else’s ideas and is looking forward to feedback.
Gesky added he spoke with some short-term rental business owners, who said they are opposed to it.
“We have to be looking for ways to promote our town without putting a burden on our businesses or residents. It appears it might be a viable tool,” Gesky said.
He added he is not in favor of taxing residents, and he really doesn’t know how he will vote, should it even come up for a vote.
Boudreau said he didn’t plan on bringing it up for a vote to the village board.
“I don’t really see the need for this tax. These people in Manteno who have short-term rentals cannot qualify for our property tax rebate. Therefore, I see paying for their property taxes currently as that tax to our village,” Boudreau explained.
“I think this could possibly dissuade people from staying in these places. We want to encourage people to visit, stay, and spend money in our town for our local businesses, as much as possible. Taxing them even a few dollars more does not seem needed at this time,” Boudreau added.
Though Boudreau wasn’t in favor of the short-term rental tax, he did mention the village may begin regulating how many short-term rentals are allowed in the village in the future.
“We are looking to regulate those that own short term rentals with a permit. This way the village will have some control over the amount in our town, if we ever feel, in the future, there are too many. It will be a minimal fee that will allow the village to deal with any concerns that may occur in these locations,” Trustee C.J. Boudreau said in an email to The Vedette.
Both Boudreau and Gesky affirmed it had not yet been discussed or considered by the board.
Visit Kankakee contends marketing to the county as a whole is more beneficial than towns marketing themselves independently because “visitors don’t know boundaries,” Gavin said.
She cited data during the November 3 board meeting that she later clarified was from the Illinois Office of Tourism, which found visitors spent $167 million in Kankakee County, generating more than $6.8 million in local taxes.
Visit Kankakee County, which has an annual operating budget of just under $450,000 per year, collects a $60,000 fee per participating municipality, plus $5,000 per hotel in their jurisdiction; with two hotels in Manteno, the village invests $70,000 in the organization for tourism.
The new tax revenue could be used for visitor-centric events, such as Oktoberfest, community benefit projects like the pavilion, streetscape enhancement, new visitor events, and more, Gavin suggested, reiterating Visit Kankakee County wouldn’t get the tax revenue, the village would.
The short-term rental tax will be discussed at the Planning and Zoning Committee meeting on November 12, at 7 a.m.
Stephanie Irvine is a freelance reporter.