Public Act 103-0642
 
SB3475 EnrolledLRB103 35867 HLH 65952 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Hotel Operators' Occupation Tax Act is 
amended by changing Section 6 as follows:
 
    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
    Sec. 6. Filing of returns and distribution of revenue.  
    (a) Except as provided hereinafter in this Section, on or 
before the last day of each calendar month, every person 
engaged in the business of renting, leasing or letting rooms 
in a hotel in this State during the preceding calendar month 
shall file a return with the Department, stating:
        1. The name of the operator;
        2. His residence address and the address of his 
    principal place of business and the address of the 
    principal place of business (if that is a different 
    address) from which he engages in the business of renting, 
    leasing or letting rooms in a hotel in this State;
        3. Total amount of rental receipts received by him 
    during the preceding calendar month from renting, leasing 
    or letting rooms during such preceding calendar month;
        4. Total amount of rental receipts received by him 
    during the preceding calendar month from renting, leasing 
    or letting rooms to permanent residents during such 
    preceding calendar month;
        5. Total amount of other exclusions from gross rental 
    receipts allowed by this Act;
        6. Gross rental receipts which were received by him 
    during the preceding calendar month and upon the basis of 
    which the tax is imposed;
        7. The amount of tax due;
        8. Such other reasonable information as the Department 
    may require.
    If the operator's average monthly tax liability to the 
Department does not exceed $200, the Department may authorize 
his returns to be filed on a quarter annual basis, with the 
return for January, February and March of a given year being 
due by April 30 of such year; with the return for April, May 
and June of a given year being due by July 31 of such year; 
with the return for July, August and September of a given year 
being due by October 31 of such year, and with the return for 
October, November and December of a given year being due by 
January 31 of the following year.
    If the operator's average monthly tax liability to the 
Department does not exceed $50, the Department may authorize 
his returns to be filed on an annual basis, with the return for 
a given year being due by January 31 of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which an operator may file his return, in the 
case of any operator who ceases to engage in a kind of business 
which makes him responsible for filing returns under this Act, 
such operator shall file a final return under this Act with the 
Department not more than 1 month after discontinuing such 
business.
    Where the same person has more than 1 business registered 
with the Department under separate registrations under this 
Act, such person shall not file each return that is due as a 
single return covering all such registered businesses, but 
shall file separate returns for each such registered business.
    In his return, the operator shall determine the value of 
any consideration other than money received by him in 
connection with the renting, leasing or letting of rooms in 
the course of his business and he shall include such value in 
his return. Such determination shall be subject to review and 
revision by the Department in the manner hereinafter provided 
for the correction of returns.
    Where the operator is a corporation, the return filed on 
behalf of such corporation shall be signed by the president, 
vice-president, secretary or treasurer or by the properly 
accredited agent of such corporation.
    The person filing the return herein provided for shall, at 
the time of filing such return, pay to the Department the 
amount of tax herein imposed. The operator filing the return 
under this Section shall, at the time of filing such return, 
pay to the Department the amount of tax imposed by this Act 
less a discount of 2.1% or $25 per calendar year, whichever is 
greater, which is allowed to reimburse the operator for the 
expenses incurred in keeping records, preparing and filing 
returns, remitting the tax and supplying data to the 
Department on request.
    If any payment provided for in this Section exceeds the 
operator's liabilities under this Act, as shown on an original 
return, the Department may authorize the operator to credit 
such excess payment against liability subsequently to be 
remitted to the Department under this Act, in accordance with 
reasonable rules adopted by the Department. If the Department 
subsequently determines that all or any part of the credit 
taken was not actually due to the operator, the operator's 
discount shall be reduced by an amount equal to the difference 
between the discount as applied to the credit taken and that 
actually due, and that operator shall be liable for penalties 
and interest on such difference. 
    (b) Until July 1, 2024, the Department shall deposit the 
total net revenue realized from the tax imposed under this Act 
as provided in this subsection (b). Beginning on July 1, 2024, 
the Department shall deposit the total net revenue realized 
from the tax imposed under this Act as provided in subsection 
(c). 
    There shall be deposited into the Build Illinois Fund in 
the State Treasury for each State fiscal year 40% of the amount 
of total net revenue from the tax imposed by subsection (a) of 
Section 3. Of the remaining 60%: (i) $5,000,000 shall be 
deposited into the Illinois Sports Facilities Fund and 
credited to the Subsidy Account each fiscal year by making 
monthly deposits in the amount of 1/8 of $5,000,000 plus 
cumulative deficiencies in such deposits for prior months, and 
(ii) an amount equal to the then applicable Advance Amount, as 
defined in subsection (d), shall be deposited into the 
Illinois Sports Facilities Fund and credited to the Advance 
Account each fiscal year by making monthly deposits in the 
amount of 1/8 of the then applicable Advance Amount plus any 
cumulative deficiencies in such deposits for prior months. 
(The deposits of the then applicable Advance Amount during 
each fiscal year shall be treated as advances of funds to the 
Illinois Sports Facilities Authority for its corporate 
purposes to the extent paid to the Authority or its trustee and 
shall be repaid into the General Revenue Fund in the State 
Treasury by the State Treasurer on behalf of the Authority 
pursuant to Section 19 of the Illinois Sports Facilities 
Authority Act, as amended. If in any fiscal year the full 
amount of the then applicable Advance Amount is not repaid 
into the General Revenue Fund, then the deficiency shall be 
paid from the amount in the Local Government Distributive Fund 
that would otherwise be allocated to the City of Chicago under 
the State Revenue Sharing Act.)
    For purposes of the foregoing paragraph, the term "Advance 
Amount" means, for fiscal year 2002, $22,179,000, and for 
subsequent fiscal years through fiscal year 2033, 105.615% of 
the Advance Amount for the immediately preceding fiscal year, 
rounded up to the nearest $1,000.
    Of the remaining 60% of the amount of total net revenue 
beginning on August 1, 2011 through June 30, 2023, from the tax 
imposed by subsection (a) of Section 3 after all required 
deposits into the Illinois Sports Facilities Fund, an amount 
equal to 8% of the net revenue realized from this Act during 
the preceding month shall be deposited as follows: 18% of such 
amount shall be deposited into the Chicago Travel Industry 
Promotion Fund for the purposes described in subsection (n) of 
Section 5 of the Metropolitan Pier and Exposition Authority 
Act and the remaining 82% of such amount shall be deposited 
into the Local Tourism Fund each month for purposes authorized 
by Section 605-705 of the Department of Commerce and Economic 
Opportunity Law. Beginning on August 1, 2011 and through June 
30, 2023, an amount equal to 4.5% of the net revenue realized 
from this Act during the preceding month shall be deposited as 
follows: 55% of such amount shall be deposited into the 
Chicago Travel Industry Promotion Fund for the purposes 
described in subsection (n) of Section 5 of the Metropolitan 
Pier and Exposition Authority Act and the remaining 45% of 
such amount deposited into the International Tourism Fund for 
the purposes authorized in Section 605-707 of the Department 
of Commerce and Economic Opportunity Law. "Net revenue 
realized" means the revenue collected by the State under this 
Act less the amount paid out as refunds to taxpayers for 
overpayment of liability under this Act.
    Beginning on July 1, 2023 and until July 1, 2024, of the 
remaining 60% of the amount of total net revenue realized from 
the tax imposed under subsection (a) of Section 3, after all 
required deposits into the Illinois Sports Facilities Fund: 
        (1) an amount equal to 8% of the net revenue realized 
    under this Act for the preceding month shall be deposited 
    as follows: 82% to the Local Tourism Fund and 18% to the 
    Chicago Travel Industry Promotion Fund; and
        (2) an amount equal to 4.5% of the net revenue 
    realized under this Act for the preceding month shall be 
    deposited as follows: 55% to the Chicago Travel Industry 
    Promotion Fund and 45% to the International Tourism Fund. 
    After making all these deposits, any remaining net revenue 
realized from the tax imposed under subsection (a) of Section 
3 shall be deposited into the Tourism Promotion Fund in the 
State Treasury. All moneys received by the Department from the 
additional tax imposed under subsection (b) of Section 3 shall 
be deposited into the Build Illinois Fund in the State 
Treasury.
    (c) Beginning on July 1, 2024, the total net revenue 
realized from the tax imposed under this Act for the preceding 
month shall be deposited each month as follows: 
        (1) 50% shall be deposited into the Build Illinois 
    Fund; and 
        (2) the remaining 50% shall be deposited in the 
    following order of priority: 
            (A) First: 
                (i) $5,000,000 shall be deposited into the 
            Illinois Sports Facilities Fund and credited to 
            the Subsidy Account each fiscal year by making 
            monthly deposits in the amount of one-eighth of 
            $5,000,000 plus cumulative deficiencies in those 
            deposits for prior months; and 
                (ii) an amount equal to the then applicable 
            Advance Amount, as defined in subsection (d), 
            shall be deposited into the Illinois Sports 
            Facilities Fund and credited to the Advance 
            Account each fiscal year by making monthly 
            deposits in the amount of one-eighth of the then 
            applicable Advance Amount plus any cumulative 
            deficiencies in such deposits for prior months; 
            the deposits of the then applicable Advance Amount 
            during each fiscal year shall be treated as 
            advances of funds to the Illinois Sports 
            Facilities Authority for its corporate purposes to 
            the extent paid to the Illinois Sports Facilities 
            Authority or its trustee and shall be repaid into 
            the General Revenue Fund in the State Treasury by 
            the State Treasurer on behalf of the Authority 
            pursuant to Section 19 of the Illinois Sports 
            Facilities Authority Act; if, in any fiscal year, 
            the full amount of the Advance Amount is not 
            repaid into the General Revenue Fund, then the 
            deficiency shall be paid from the amount in the 
            Local Government Distributive Fund that would 
            otherwise be allocated to the City of Chicago 
            under the State Revenue Sharing Act; and 
            (B) after all required deposits into the Illinois 
        Sports Facilities Fund under paragraph (A) have been 
        made each month, the remainder shall be deposited as 
        follows: 
                (i) 56% into the Tourism Promotion Fund; 
                (ii) 23% into the Local Tourism Fund; 
                (iii) 14% into the Chicago Travel Industry 
            Promotion Fund; and 
                (iv) 7% into the International Tourism Fund. 
    (d) As used in subsections (b) and (c): 
    "Advance Amount" means, for fiscal year 2002, $22,179,000, 
and for subsequent fiscal years through fiscal year 2033, 
105.615% of the Advance Amount for the immediately preceding 
fiscal year, rounded up to the nearest $1,000. 
    "Net revenue realized" means the revenue collected by the 
State under this Act less the amount paid out as refunds to 
taxpayers for overpayment of liability under this Act. 
    (e) The Department may, upon separate written notice to a 
taxpayer, require the taxpayer to prepare and file with the 
Department on a form prescribed by the Department within not 
less than 60 days after receipt of the notice an annual 
information return for the tax year specified in the notice. 
Such annual return to the Department shall include a statement 
of gross receipts as shown by the operator's last State income 
tax return. If the total receipts of the business as reported 
in the State income tax return do not agree with the gross 
receipts reported to the Department for the same period, the 
operator shall attach to his annual information return a 
schedule showing a reconciliation of the 2 amounts and the 
reasons for the difference. The operator's annual information 
return to the Department shall also disclose payroll 
information of the operator's business during the year covered 
by such return and any additional reasonable information which 
the Department deems would be helpful in determining the 
accuracy of the monthly, quarterly or annual tax returns by 
such operator as hereinbefore provided for in this Section.
    If the annual information return required by this Section 
is not filed when and as required the taxpayer shall be liable 
for a penalty in an amount determined in accordance with 
Section 3-4 of the Uniform Penalty and Interest Act until such 
return is filed as required, the penalty to be assessed and 
collected in the same manner as any other penalty provided for 
in this Act.
    The chief executive officer, proprietor, owner or highest 
ranking manager shall sign the annual return to certify the 
accuracy of the information contained therein. Any person who 
willfully signs the annual return containing false or 
inaccurate information shall be guilty of perjury and punished 
accordingly. The annual return form prescribed by the 
Department shall include a warning that the person signing the 
return may be liable for perjury.
    The foregoing portion of this Section concerning the 
filing of an annual information return shall not apply to an 
operator who is not required to file an income tax return with 
the United States Government.
(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.