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Wauconda board approves short-term rental business license with 30-mile residency rule after public pushback
Summary
The Wauconda Village Board approved a business-license program for short-term rentals that includes a $200 annual fee, $135 application fee (waived for already registered rentals), and a requirement that an owner or manager be located within 30 miles during rentals. A resident at public comment called the residency rule arbitrary and alleged retaliatory enforcement.
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The Wauconda Village Board on June 3 approved an ordinance establishing a business-license program for short-term rentals and other rental regulations after hearing public concerns about the rules and enforcement.
Administrator Mary Matson presented the ordinance, saying the program would require a business license, a $200 annual fee and a $135 application fee (the application fee would be waived for properties already registered as rental properties). Matson said the ordinance would require the applicant to be the property owner, require HOA approval where applicable, require liability insurance, allow for annual inspections under exigent circumstances, and require that an owner or manager be located within 30 miles of the rental property during the rental period.
John Floyd, a long-time property owner and local resident, used the public-comment period to oppose the 30-mile residency requirement and a proposed gross tax on short-term rentals. "The proposed regulation requiring owners or managers of short-term rentals to live within 30 miles of the property is arbitrary, unnecessary, and frankly, overreaching," Floyd said, adding that a gross (not net) tax could amount to an effective rate of 15 to 30% of net income. Floyd also alleged selective enforcement, saying he received a citation for a minor downspout issue following a complaint he raised about the regulations; he characterized that citation as retaliation and said the Economic Development Commission did not respond when he raised the issue.
Board members moved and seconded consideration of the ordinance and approved it by roll call. The roll call in the record shows trustees answering in the affirmative for the item as presented.
Why it matters: The new licensing scheme sets specific financial and proximity requirements that will affect owners who rent homes or rooms on short-term platforms. The 30-mile residency requirement and fee structure were focal points of concern among property owners who spoke during public comment; the ordinance gives village staff authority to inspect and enforce compliance.
Next steps: The ordinance took effect following board approval as presented. The village indicated that applicants already registered will have their application fee waived; details about enforcement timing and administrative rules or implementation steps were not specified in the meeting record.

