At a special meeting on 11/28/23, the Village Board approved an ordinance to establish a tax on long-term stays at hotels for the purpose of protecting the economic viability of the hospitality industry and ensuring local revenue generation for the village. The ordinance includes a $1,000/month tax for stays of 30 days or more.

The Village Code includes exceptions to allow a hotel to provide housing/shelter beyond the 29-day requirement. These exceptions are as follows:

1. Where there is a written contract or documented agreement between a hotel, motel, or extended-stay hotel and a business, corporation, firm or governmental agency to house employees or individuals on valid work orders;
2. Where there is documentation that a hotel guest is considered family or is providing care for a patient who is admitted at local hospital;
3. When an insurance company or federal, state or local agency has provided documentation that a hotel guest has been displaced from their home by a natural disaster or fire;
4. Where there is a written contract or documented agreement between a hotel, motel, or extended-stay hotel and an organization to provide emergency or transitional housing/shelter.

The ordinance has an allowance for up to 10% of the total occupancy of the hotel for these exceptions.

In talking with hotel owners and operators, village staff has learned that the occupancy of some hotels could be as much as 90% contract business (under #1 above). In order to address this, and not impose the new tax on these corporate travelers, an amended ordinance has been drafted that will exempt all contractual arrangements for employees that are being housed in Schaumburg hotels for valid work/employment purposes.

This will allow hotels to continue to enter into contracts with businesses and not put Schaumburg hotels at a competitive disadvantage with neighboring communities.