City Council reviews short-term rental tax agreements with Airbnb and other platforms

During the recent City Council meeting on May 27, 2025, the La Salle City Council discussed the growing impact of short-term rental services, particularly Airbnb, on local tax revenues. The council highlighted the importance of these rentals, which have become increasingly popular in the community.

City officials noted that since the implementation of a general rental ordinance in February 2019, La Salle has seen a significant increase in revenue from Airbnb rentals. Over the past five years, the city has collected approximately $70,000 in taxes from Airbnb, with recent figures indicating that the revenue has been growing steadily. In 2024 alone, the city received nearly $20,000, reflecting a rebound from the downturn experienced during the COVID-19 pandemic.

The council emphasized that Airbnb collects taxes on behalf of the city and remits them in a lump sum, which simplifies the process for local authorities. However, it was pointed out that other short-term rental platforms, such as Vrbo and Kayak, do not have similar agreements with the city. Property owners using these platforms are responsible for remitting taxes directly to the city, which complicates revenue tracking.

As the popularity of short-term rentals continues to rise, the council is considering ways to enhance their rental ordinance and ensure that all rental platforms contribute fairly to the city's tax base. The discussions reflect a proactive approach to managing the evolving landscape of rental services and their implications for local governance and revenue generation.