101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3858

 

Introduced 2/14/2020, by Sen. John F. Curran

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-3-14  from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a

    Amends the Illinois Municipal Code. Provides that a municipality may expend no more than 75% of the amounts collected from the municipal hotel operators' occupation tax and municipal hotel use tax for the municipality's pension and infrastructure costs.


LRB101 20730 AWJ 70407 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3858LRB101 20730 AWJ 70407 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 8-3-14 and 8-3-14a as follows:
 
6    (65 ILCS 5/8-3-14)  (from Ch. 24, par. 8-3-14)
7    Sec. 8-3-14. Municipal hotel operators' occupation tax.
8The corporate authorities of any municipality may impose a tax
9upon all persons engaged in such municipality in the business
10of renting, leasing or letting rooms in a hotel, as defined in
11"The Hotel Operators' Occupation Tax Act," at a rate not to
12exceed 6% in the City of East Peoria and in the Village of
13Morton and 5% in all other municipalities of the gross rental
14receipts from such renting, leasing or letting, excluding,
15however, from gross rental receipts, the proceeds of such
16renting, leasing or letting to permanent residents of that
17hotel and proceeds from the tax imposed under subsection (c) of
18Section 13 of the Metropolitan Pier and Exposition Authority
19Act, and may provide for the administration and enforcement of
20the tax, and for the collection thereof from the persons
21subject to the tax, as the corporate authorities determine to
22be necessary or practicable for the effective administration of
23the tax. The municipality may not impose a tax under this

 

 

SB3858- 2 -LRB101 20730 AWJ 70407 b

1Section if it imposes a tax under Section 8-3-14a.
2    Persons subject to any tax imposed pursuant to authority
3granted by this Section may reimburse themselves for their tax
4liability for such tax by separately stating such tax as an
5additional charge, which charge may be stated in combination,
6in a single amount, with State tax imposed under "The Hotel
7Operators' Occupation Tax Act".
8    Nothing in this Section shall be construed to authorize a
9municipality to impose a tax upon the privilege of engaging in
10any business which under the constitution of the United States
11may not be made the subject of taxation by this State.
12    Except as otherwise provided in this Division, the amounts
13collected by any municipality pursuant to this Section shall be
14expended by the municipality solely to promote tourism and
15conventions within that municipality or otherwise to attract
16nonresident overnight visitors to the municipality, except
17that no more than 75% of the amounts collected may be expended
18for the municipality's pension and infrastructure costs.
19    No funds received pursuant to this Section shall be used to
20advertise for or otherwise promote new competition in the hotel
21business.
22(Source: P.A. 101-204, eff. 8-2-19.)
 
23    (65 ILCS 5/8-3-14a)
24    Sec. 8-3-14a. Municipal hotel use tax.
25    (a) The corporate authorities of any municipality may

 

 

SB3858- 3 -LRB101 20730 AWJ 70407 b

1impose a tax upon the privilege of renting or leasing rooms in
2a hotel within the municipality at a rate not to exceed 5% of
3the rental or lease payment. The corporate authorities may
4provide for the administration and enforcement of the tax and
5for the collection thereof from the persons subject to the tax,
6as the corporate authorities determine to be necessary or
7practical for the effective administration of the tax.
8    (b) Each hotel in the municipality shall collect the tax
9from the person making the rental or lease payment at the time
10that the payment is tendered to the hotel. The hotel shall, as
11trustee, remit the tax to the municipality.
12    (c) The tax authorized under this Section does not apply to
13any rental or lease payment by a permanent resident of that
14hotel or to any payment made to any hotel that is subject to
15the tax imposed under subsection (c) of Section 13 of the
16Metropolitan Pier and Exposition Authority Act. A municipality
17may not impose a tax under this Section if it imposes a tax
18under Section 8-3-14. Nothing in this Section may be construed
19to authorize a municipality to impose a tax upon the privilege
20of engaging in any business that under the Constitution of the
21United States may not be made the subject of taxation by this
22State.
23    (d) Except as otherwise provided in this Division, the
24moneys collected by a municipality under this Section may be
25expended solely to promote tourism and conventions within that
26municipality or otherwise to attract nonresident overnight

 

 

SB3858- 4 -LRB101 20730 AWJ 70407 b

1visitors to the municipality, except that no more than 75% of
2the amounts collected may be expended for the municipality's
3pension and infrastructure costs. No moneys received under this
4Section may be used to advertise for or otherwise promote new
5competition in the hotel business.
6    (e) As used in this Section, "hotel" has the meaning set
7forth in Section 2 of the Hotel Operators' Occupation Tax Act.
8(Source: P.A. 101-204, eff. 8-2-19.)