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Airbnb hosts and other people renting homes on platforms like HomeAway and VRBO will have to pay a 4 percent tax in the future.

Chicago officials are set to start enforcing a new ordinance that imposes tougher regulations on short-term rental companies like Airbnb after a federal judge’s ruling in the city’s favor.

On Tuesday, the judge denied a motion seeking to temporary block the regulations the Chicago City Council voted to approve last June.

With that, Bill McCaffrey of the city’s law department tells the Chicago Tribune┬áthe city will begin “taking steps to enforce all aspects of its home-sharing ordinance.”

The ordinance was sparked by concerns that short-term rental companies were turning residential buildings into virtual hotels and party hotspots. It puts a limit on the number of units in a building that can be rented out on the home-sharing sites and calls for an extra tax on home-sharing hosts.

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Tags: airbnb, chicago, regulations, short-term rentals

Photo credit: Airbnb host Laura Schofield rents a room in her home in Chicago's Humboldt Park neighborhood. New city laws regulating short-term rentals will require her and other Airbnb hosts to pay a higher tax. Charles Rex Arbogast / Associated Press

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