🎯 STRisker: Bulletin - Shiloh, Illinois
Special Use Permit and annual license both required under unanimously passed ordinances approved June 1
Shiloh Rewrites STR Rules From Scratch
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The Village of Shiloh overhauled its short-term rental framework on June 1 when the Board of Trustees unanimously passed two ordinances that together replace the existing STR rules with a more demanding permitting and tax regime. Both measures passed without dissent, following a May 26 Committee at Large session and a concurrent Planning Commission public hearing that previewed the changes.
Context: Why Shiloh Has an STR Market
Shiloh sits in St. Clair County in southwestern Illinois that is less than a mile from the main gate of Scott Air Force Base, one of the largest military installations in the region. The base generates a steady flow of personnel on permanent change-of-station orders, contractors, and family visitors which creates sustained demand for short-term furnished accommodation that has made the village an active STR market relative to its size of approximately 14,000 to 15,000 residents.
The New Permitting Framework
The first ordinance repeals and replaces Shiloh's prior STR regulations in full, introducing a Special Use Permit requirement, mandatory occupancy inspections, and an annual renewal license that operators must obtain before listing a property. The ordinance also sets operational standards covering occupancy limits and parking which are areas that have generated enforcement difficulty in comparable Illinois municipalities.
The New Local Tax
The second ordinance establishes a new local tax on STR transactions and gives Shiloh its own direct collection mechanism. Under Illinois state law, non-home-rule municipalities with populations under 25,000 in which Shiloh is included are capped at a 5% hotel-motel tax on overnight stays. Most Illinois villages that have recently extended this tax to STRs including neighboring Caseyville in St. Clair County levy at that 5% ceiling. Whatever rate Shiloh adopts, it will stack on top of the state Hotel Operators' Occupation Tax which is set at approximately 5.64% of gross rental receipts on stays under 30 nights and was extended to STR operators from July 1, 2025 under Public Act 104-0006. Before June 1, Shiloh did not appear among the Illinois municipalities where platforms automatically collect and remit a local lodging tax on behalf of hosts.
What This Means for Operators
For hosts already operating in the village, the new framework requires engagement with the permitting process before the next active booking period. Platform operators will also face the obligation of collecting and remitting the new local tax once Shiloh establishes its collection mechanism.
Watch for publication of the full ordinance text through the Village of Shiloh's code library which will confirm fee amounts, penalty provisions, occupancy thresholds, parking requirements, and the local tax rate and structure.
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