Galena Short-Term Rental Regulations

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Permit & Licensing

Guest Accommodations License

This permit type does not require primary residence.

Application Process

In-person process: owner must first obtain a special use permit from the city, then apply for a Guest Accommodations License. Requires fire, health department, and Building Department inspections (owner present), plus proof of liability insurance, before the license is issued. Citywide license counts are capped and currently full, with a waitlist for new applicants.

Tax Obligations

Combined rate: 11% of gross rental income.

Rental Limits

Galena does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Vacation rentals (guest accommodations) require a special use permit plus a capped operating license: limited to 20 licenses in residential zoning districts (with a density cap of 5 licenses per 25.83-acre circular area) and 75 licenses in commercial zoning districts. All available licenses are currently issued and new applicants are placed on a waitlist.

Insurance & Safety

Insurance

Operators must maintain at least $500,000 per occurrence in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Fire inspection report from the Fire Chief confirming compliance with fire and life safety regulations, including the NFPA Life Safety Code
• Health inspection report from the Jo Daviess County Health Department
• Building Department report confirming compliance with Building, Electrical, and Plumbing Codes
• Owner must be present during the initial and annual license inspection

Penalties for Non-Compliance

• $750 maximum fine per violation (general municipal penalty; Chapter 112 does not set a chapter-specific amount)
• Each day a violation continues constitutes a separate offense

Platform Requirements

Illinois requires short-term rental hosting platforms (e.g., Airbnb, Vrbo) that qualify as "re-renters of hotel rooms" to collect and remit Illinois Hotel Operators' Occupation Tax on bookings, effective July 1, 2025.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Galena:

1. Meet safety requirements. Fire inspection report from the Fire Chief confirming compliance with fire and life safety regulations, including the NFPA Life Safety Code. Health inspection report from the Jo Daviess County Health Department. Building Department report confirming compliance with Building, Electrical, and Plumbing Codes. Owner must be present during the initial and annual license inspection.
2. Obtain liability insurance. $500,000 per occurrence minimum.
3. Apply for Guest Accommodations License. Submit application + $150 fee.
4. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
5. Collect and remit taxes. 11% on all bookings.
6. Renew annually. $130 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Galena?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Galena requires a Guest Accommodations License.

How much does a short-term rental permit cost in Galena?

A Guest Accommodations License in Galena costs $150 per year. Renewal is $130 per year.

Does Galena require a short-term rental to be your primary residence?

No. Galena allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Galena?

Galena does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Galena?

Short-term rental stays in Galena are subject to a combined 11% in lodging taxes. This combines 6% Illinois Hotel Operators' Occupation Tax + 5% Galena Hotel Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Galena?

Operating without a permit can cost up to $750 per day (general municipal penalty).