Major city hikes hotel tax to nearly 20% as tourism bosses eye major events

The Chicago City Council has agreed to rise its tourer taxation successful an effort to turn traveler selling programs.

The ballot connected Ordinance 2026-0022544 volition rise the taxation connected edifice rooms wrong that territory to 19% from the complaint of 17.5% — which includes a combined city, region and authorities tax, according to the Chicago Sun Times.

The summation volition beryllium applied to edifice stays astatine properties successful the downtown and surrounding areas that incorporate implicit 100 rooms.

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The summation volition use to country rates astatine hotels with 100 oregon much rooms that hold to opt in.

The metropolis assembly besides passed the enactment of the Tourism Improvement District (TID) — which volition money Choose Chicago, the city’s authoritative destination selling organization.

Chicago is raising tourer taxes connected downtown edifice bookings to 19% to boost tourism selling efforts. (iStock)

Revenue volition beryllium utilized for metropolis selling campaigns and to screen bid fees for conventions and large events.

Chicago is already targeting the Democratic National Convention, which requires a $1 cardinal bid. 

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The Windy City antecedently hosted the DNC successful August 2024.

Earlier this month, the Democratic National Committee (DNC) precocious bids from Atlanta, Boston, Chicago, Denver and Philadelphia.

The City Council besides passed the enactment of the Tourism Improvement District. (Robert Knopes/UCG/Universal Images Group via Getty Images)

Its advisory committee is considering respective factors, the DNC said — including a "commitment to selecting a metropolis that shares Democratic values."

Mayor Brandon Johnson issued a property merchandise aft the City Council’s vote, praising the decision.

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"Chicago is simply a premier metropolis for tourism, concern travelers, conventions and large-scale events," said Johnson.

"My medication volition proceed our collaboration with Choose Chicago, arsenic we proceed to physique up Chicago’s tourism and hospitality manufacture portion leveraging economical maturation and improvement to proceed gathering harmless and affordable communities crossed our city," helium added.

Chicago is already targeting the Democratic National Convention, which requires a $1 cardinal bid. (David Paul Morris/Bloomberg via Getty Images)

Choose Chicago president and CEO Kristen Reynolds said successful a property merchandise that this marks a "transformative moment" for the city.

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"With the TID successful place, we present person the enhanced resources to lucifer the ambition and vibrancy of our city," said Reynolds.

She added, "This concern volition let america to amplify our selling efforts, pull much conventions and events and yet present important benefits to Chicago’s system and communities."

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Guy Chipparoni, seat of the Choose Chicago committee of directors, said successful a statement, "It sends a connection to our competing cities that erstwhile it comes to attracting visitors, Chicago means business."

Reacting connected societal media to the quality astir the taxation hike, 1 idiosyncratic wrote, "19% taxation connected a edifice room, making it the highest successful the nation. Vacations tin get pricey, particularly for a family. How would this assistance tourism?"

Another X idiosyncratic wrote, "Democrats successful Chicago volition adjacent imagination up a enactment tax. It's not acold away."