Full Text of SB0587 100th General Assembly
SB0587enr 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Hotel Operators' Occupation Tax Act is | 5 | | amended by changing Sections 2, 3, and 9 as follows:
| 6 | | (35 ILCS 145/2) (from Ch. 120, par. 481b.32)
| 7 | | Sec. 2. Definitions. As used in this Act, unless the | 8 | | context otherwise requires:
| 9 | | (1) "Hotel" means any building or buildings in which | 10 | | the public may,
for a consideration, obtain living | 11 | | quarters, sleeping or housekeeping
accommodations. The | 12 | | term includes , but is not limited to, inns, motels, tourist | 13 | | homes or courts,
lodging houses, rooming houses and | 14 | | apartment houses , retreat centers, conference centers, and | 15 | | hunting lodges .
| 16 | | (2) "Operator" means any person operating a hotel.
| 17 | | (3) "Occupancy" means the use or possession, or the | 18 | | right to the use
or possession, of any room or rooms in a | 19 | | hotel for any purpose, or the
right to the use or | 20 | | possession of the furnishings or to the services and
| 21 | | accommodations accompanying the use and possession of the | 22 | | room or rooms.
| 23 | | (4) "Room" or "rooms" means any living quarters, |
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| 1 | | sleeping or
housekeeping accommodations.
| 2 | | (5) "Permanent resident" means any person who occupied | 3 | | or has the
right to occupy any room or rooms, regardless of | 4 | | whether or not it is the
same room or rooms, in a hotel for | 5 | | at least 30 consecutive days.
| 6 | | (6) "Rent" or "rental" means the consideration | 7 | | received for
occupancy, valued in money, whether received | 8 | | in money or otherwise,
including all receipts, cash, | 9 | | credits and property or services of any
kind or nature.
| 10 | | (7) "Department" means the Department of Revenue.
| 11 | | (8) "Person" means any natural individual, firm, | 12 | | partnership,
association, joint stock company, joint | 13 | | adventure, public or private
corporation, limited | 14 | | liability company, or a receiver, executor, trustee,
| 15 | | guardian or other representative appointed by order of any | 16 | | court.
| 17 | | (Source: P.A. 87-951; 88-480.)
| 18 | | (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
| 19 | | Sec. 3. Rate; Exemptions Exemption .
| 20 | | (a) A tax is imposed upon persons engaged in the business | 21 | | of renting,
leasing or letting rooms in a hotel at the rate of | 22 | | 5% of 94% of the gross
rental receipts from such renting, | 23 | | leasing or letting, excluding, however,
from gross rental | 24 | | receipts, the proceeds of such renting, leasing or
letting to | 25 | | permanent residents of that hotel and proceeds from the tax
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| 1 | | imposed under subsection (c) of Section 13 of the Metropolitan | 2 | | Pier and
Exposition Authority Act.
| 3 | | (b) There Commencing on the first day of the first month | 4 | | after the month
this amendatory Act of 1984 becomes law, there | 5 | | shall be imposed an
additional tax upon persons engaged in the | 6 | | business of renting, leasing or
letting rooms in a hotel at the | 7 | | rate of 1% of 94% of the gross rental
receipts from such | 8 | | renting, leasing or letting, excluding, however, from
gross | 9 | | rental receipts, the proceeds of such renting, leasing or | 10 | | letting to
permanent residents of that hotel and proceeds from | 11 | | the tax imposed under
subsection (c) of Section 13 of the | 12 | | Metropolitan Pier and Exposition
Authority Act.
| 13 | | (c) No funds received pursuant to this Act shall be used to
| 14 | | advertise for or otherwise promote new competition in the hotel | 15 | | business.
| 16 | | (d) However, such tax is not imposed upon the privilege of
| 17 | | engaging in any business in Interstate Commerce or otherwise,
| 18 | | which business may not, under the Constitution and Statutes of
| 19 | | the United States, be made the subject of taxation by this | 20 | | State.
In addition, the tax is not imposed upon gross rental | 21 | | receipts for which
the hotel operator is prohibited from | 22 | | obtaining reimbursement for the tax
from the customer by reason | 23 | | of a federal treaty.
| 24 | | (d-5) On and after July 1, 2017, the tax imposed by this | 25 | | Act shall not apply to gross rental receipts received by an | 26 | | entity that is organized and operated exclusively for religious |
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| 1 | | purposes and possesses an active Exemption Identification | 2 | | Number issued by the Department pursuant to the Retailers' | 3 | | Occupation Tax Act when acting as a hotel operator renting, | 4 | | leasing, or letting rooms: | 5 | | (1) in furtherance of the purposes for which it is | 6 | | organized; or | 7 | | (2) to entities that (i) are organized and operated | 8 | | exclusively for religious purposes, (ii) possess an active | 9 | | Exemption Identification Number issued by the Department | 10 | | pursuant to the Retailers' Occupation Tax Act, and (iii) | 11 | | rent the rooms in furtherance of the purposes for which | 12 | | they are organized. | 13 | | No gross rental receipts are exempt under paragraph (2) of | 14 | | this subsection (d-5) unless the hotel operator obtains the | 15 | | active Exemption Identification Number from the exclusively | 16 | | religious entity to whom it is renting and maintains that | 17 | | number in its books and records. Gross rental receipts from all | 18 | | rentals other than those described in items (1) or (2) of this | 19 | | subsection (d-5) are subject to the tax imposed by this Act | 20 | | unless otherwise exempt under this Act. | 21 | | This subsection (d-5) is exempt from the sunset provisions | 22 | | of Section 3-5 of this Act. | 23 | | (e) Persons subject to the tax imposed by this Act may
| 24 | | reimburse themselves for their tax liability under this Act by
| 25 | | separately stating such tax as an additional charge, which
| 26 | | charge may be stated in combination, in a single amount, with
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| 1 | | any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
| 2 | | Illinois Municipal Code, and Section 25.05-10 of "An Act to | 3 | | revise
the law in relation to counties".
| 4 | | (f) If any hotel operator collects an amount (however
| 5 | | designated) which purports to reimburse such operator for hotel
| 6 | | operators' occupation tax liability measured by receipts which
| 7 | | are not subject to hotel operators' occupation tax, or if any
| 8 | | hotel operator, in collecting an amount (however designated)
| 9 | | which purports to reimburse such operator for hotel operators'
| 10 | | occupation tax liability measured by receipts which are subject
| 11 | | to tax under this Act, collects more from the customer than the
| 12 | | operators' hotel operators' occupation tax liability in the
| 13 | | transaction is, the customer shall have a legal right to claim
| 14 | | a refund of such amount from such operator. However, if such
| 15 | | amount is not refunded to the customer for any reason, the | 16 | | hotel
operator is liable to pay such amount to the Department.
| 17 | | (Source: P.A. 87-733.)
| 18 | | (35 ILCS 145/9) (from Ch. 120, par. 481b.39)
| 19 | | Sec. 9. Applicability. Persons engaged in the business of | 20 | | renting, leasing or
letting rooms in a hotel only to permanent | 21 | | residents are exempt from the
provisions of this Act. In | 22 | | addition, persons engaged in the business of renting, leasing, | 23 | | or letting rooms in a hotel whose only rentals are as described | 24 | | in items (1) and (2) of subsection (d-5) of Section 3 of this | 25 | | Act are exempt from the provisions of this Act.
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| 1 | | (Source: Laws 1961, p. 1728.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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