Full Text of HB4192 103rd General Assembly
HB4192 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4192 Introduced 10/25/2023, by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED: | | 65 ILCS 5/8-3-13 | from Ch. 24, par. 8-3-13 | 65 ILCS 5/8-3-14 | from Ch. 24, par. 8-3-14 | 65 ILCS 5/8-3-14a | | 65 ILCS 5/8-3-14b | | 65 ILCS 5/8-3-14c | |
| Amends the Illinois Municipal Code. Provides that amounts disbursed to a municipality from its municipal hotel operators' occupation or use tax may also be used by the municipality to fund pensions for police officers and firefighters. |
| |
| | A BILL FOR |
| | | | HB4192 | | LRB103 34570 HLH 64407 b |
|
| 1 | | AN ACT concerning local government. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing Sections 8-3-13, 8-3-14, 8-3-14a, 8-3-14b, and | 6 | | 8-3-14c as follows: | 7 | | (65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13) | 8 | | Sec. 8-3-13. The corporate authorities of any municipality | 9 | | containing 500,000 or more inhabitants may impose a tax prior | 10 | | to July 1, 1969, upon all persons engaged in the municipality | 11 | | in the business of renting, leasing or letting rooms in a | 12 | | hotel, as defined in the Hotel Operators' Occupation Tax Act, | 13 | | at a rate not to exceed 1% of the gross rental receipts from | 14 | | the renting, leasing or letting, excluding, however, from | 15 | | gross rental receipts, the proceeds of the renting, leasing or | 16 | | letting to permanent residents of that hotel and proceeds from | 17 | | the tax imposed under subsection (c) of Section 13 of the | 18 | | Metropolitan Pier and Exposition Authority Act. | 19 | | The tax imposed by a municipality under this Section and | 20 | | all civil penalties that may be assessed as an incident | 21 | | thereof shall be collected and enforced by the State | 22 | | Department of Revenue. The certificate of registration that is | 23 | | issued by the Department to a lessor under the Hotel |
| | | HB4192 | - 2 - | LRB103 34570 HLH 64407 b |
|
| 1 | | Operators' Occupation Tax Act shall permit the registrant to | 2 | | engage in a business that is taxable under any ordinance or | 3 | | resolution enacted under this Section without registering | 4 | | separately with the Department under the ordinance or | 5 | | resolution or under this Section. The Department shall have | 6 | | full power to administer and enforce this Section; to collect | 7 | | all taxes and penalties due hereunder; to dispose of taxes and | 8 | | penalties so collected in the manner provided in this Section; | 9 | | and to determine all rights to credit memoranda arising on | 10 | | account of the erroneous payment of tax or penalty hereunder. | 11 | | In the administration of and compliance with this Section, the | 12 | | Department and persons who are subject to this Section shall | 13 | | have the same rights, remedies, privileges, immunities, powers | 14 | | and duties, and be subject to the same conditions, | 15 | | restrictions, limitations, penalties and definitions of terms, | 16 | | and employ the same modes of procedure, as are prescribed in | 17 | | the Hotel Operators' Occupation Tax Act and the Uniform | 18 | | Penalty and Interest Act, as fully as if the provisions | 19 | | contained in those Acts were set forth herein. | 20 | | Whenever the Department determines that a refund should be | 21 | | made under this Section to a claimant instead of issuing a | 22 | | credit memorandum, the Department shall notify the State | 23 | | Comptroller, who shall cause the warrant to be drawn for the | 24 | | amount specified, and to the person named, in the notification | 25 | | from the Department. The refund shall be paid by the State | 26 | | Treasurer out of the Illinois tourism tax fund. |
| | | HB4192 | - 3 - | LRB103 34570 HLH 64407 b |
|
| 1 | | Persons subject to any tax imposed under authority granted | 2 | | by this Section may reimburse themselves for their tax | 3 | | liability for that tax by separately stating the tax as an | 4 | | additional charge, which charge may be stated in combination, | 5 | | in a single amount, with State tax imposed under the Hotel | 6 | | Operators' Occupation Tax Act. | 7 | | The Department shall forthwith pay over to the State | 8 | | Treasurer, ex-officio, as trustee, all taxes and penalties | 9 | | collected hereunder. On or before the 25th day of each | 10 | | calendar month, the Department shall prepare and certify to | 11 | | the Comptroller the disbursement of stated sums of money to | 12 | | named municipalities from which lessors have paid taxes or | 13 | | penalties hereunder to the Department during the second | 14 | | preceding calendar month. The amount to be paid to each | 15 | | municipality shall be the amount (not including credit | 16 | | memoranda) collected hereunder during the second preceding | 17 | | calendar month by the Department, and not including an amount | 18 | | equal to the amount of refunds made during the second | 19 | | preceding calendar month by the Department on behalf of the | 20 | | municipality, less 4% of the balance, which sum shall be | 21 | | retained by the State Treasurer to cover the costs incurred by | 22 | | the Department in administering and enforcing the provisions | 23 | | of this Section, as provided herein. The Department, at the | 24 | | time of each monthly disbursement to the municipalities, shall | 25 | | prepare and certify to the Comptroller the amount so retained | 26 | | by the State Treasurer, which shall be paid into the General |
| | | HB4192 | - 4 - | LRB103 34570 HLH 64407 b |
|
| 1 | | Revenue Fund of the State Treasury. | 2 | | Within 10 days after receipt by the Comptroller of the | 3 | | disbursement certification to the municipalities and the | 4 | | General Revenue Fund provided for in this Section to be given | 5 | | to the Comptroller by the Department, the Comptroller shall | 6 | | cause the warrants to be drawn for the respective amounts in | 7 | | accordance with the directions contained in the certification. | 8 | | Nothing in this Section shall be construed to authorize a | 9 | | municipality to impose a tax upon the privilege of engaging in | 10 | | any business that, under the Constitution of the United | 11 | | States, may not be made the subject of taxation by this State. | 12 | | An ordinance or resolution imposing a tax hereunder or | 13 | | effecting a change in the rate thereof shall be effective on | 14 | | the first day of the calendar month next following the | 15 | | expiration of the publication period provided in Section 1-2-4 | 16 | | in respect to municipalities governed by that Section. | 17 | | The corporate authorities of any municipality that levies | 18 | | a tax authorized by this Section shall transmit to the | 19 | | Department of Revenue on or not later than 5 days after the | 20 | | effective date of the ordinance or resolution a certified copy | 21 | | of the ordinance or resolution imposing the tax; whereupon, | 22 | | the Department of Revenue shall proceed to administer and | 23 | | enforce this Section on behalf of the municipality as of the | 24 | | effective date of the ordinance or resolution. Upon a change | 25 | | in rate of a tax levied hereunder, or upon the discontinuance | 26 | | of the tax, the corporate authorities of the municipality |
| | | HB4192 | - 5 - | LRB103 34570 HLH 64407 b |
|
| 1 | | shall, on or not later than 5 days after the effective date of | 2 | | the ordinance or resolution discontinuing the tax or effecting | 3 | | a change in rate, transmit to the Department of Revenue a | 4 | | certified copy of the ordinance or resolution effecting the | 5 | | change or discontinuance. The amounts disbursed to any | 6 | | municipality under this Section shall be expended by the | 7 | | municipality only for one or more of the following purposes: | 8 | | (1) solely to promote tourism, conventions and other special | 9 | | events within that municipality or otherwise to attract | 10 | | nonresidents to visit the municipality ; or (2) to fund | 11 | | obligations of the municipality under Article 3, 4, 5, or 6 of | 12 | | the Illinois Pension Code . | 13 | | Any municipality receiving and disbursing money under this | 14 | | Section shall report on or before the first Monday in January | 15 | | of each year to the Advisory Committee of the Illinois Tourism | 16 | | Promotion Fund, created by Section 12 of the Illinois | 17 | | Promotion Act. The reports shall specify the purposes for | 18 | | which the disbursements were made and shall contain detailed | 19 | | amounts of all receipts and disbursements under this Section. | 20 | | This Section may be cited as the Tourism, Conventions and | 21 | | Other Special Events Promotion Act of 1967. | 22 | | (Source: P.A. 87-205; 87-733; 87-895 .) | 23 | | (65 ILCS 5/8-3-14) (from Ch. 24, par. 8-3-14) | 24 | | Sec. 8-3-14. Municipal hotel operators' occupation tax. | 25 | | The corporate authorities of any municipality may impose a tax |
| | | HB4192 | - 6 - | LRB103 34570 HLH 64407 b |
|
| 1 | | upon all persons engaged in such municipality in the business | 2 | | of renting, leasing or letting rooms in a hotel, as defined in | 3 | | "The Hotel Operators' Occupation Tax Act," at a rate not to | 4 | | exceed 6% in the City of East Peoria and in the Village of | 5 | | Morton and 5% in all other municipalities of the gross rental | 6 | | receipts from such renting, leasing or letting, excluding, | 7 | | however, from gross rental receipts, the proceeds of such | 8 | | renting, leasing or letting to permanent residents of that | 9 | | hotel and proceeds from the tax imposed under subsection (c) | 10 | | of Section 13 of the Metropolitan Pier and Exposition | 11 | | Authority Act, and may provide for the administration and | 12 | | enforcement of the tax, and for the collection thereof from | 13 | | the persons subject to the tax, as the corporate authorities | 14 | | determine to be necessary or practicable for the effective | 15 | | administration of the tax. The municipality may not impose a | 16 | | tax under this Section if it imposes a tax under Section | 17 | | 8-3-14a. | 18 | | Persons subject to any tax imposed pursuant to authority | 19 | | granted by this Section may reimburse themselves for their tax | 20 | | liability for such tax by separately stating such tax as an | 21 | | additional charge, which charge may be stated in combination, | 22 | | in a single amount, with State tax imposed under "The Hotel | 23 | | Operators' Occupation Tax Act". | 24 | | Nothing in this Section shall be construed to authorize a | 25 | | municipality to impose a tax upon the privilege of engaging in | 26 | | any business which under the constitution of the United States |
| | | HB4192 | - 7 - | LRB103 34570 HLH 64407 b |
|
| 1 | | may not be made the subject of taxation by this State. | 2 | | Except as otherwise provided in this Division, the amounts | 3 | | collected by any municipality pursuant to this Section shall | 4 | | be expended by the municipality only for one or more of the | 5 | | following purposes: (1) solely to promote tourism and | 6 | | conventions within that municipality or otherwise to attract | 7 | | nonresident overnight visitors to the municipality ; or (2) to | 8 | | fund obligations of the municipality under Article 3, 4, 5, or | 9 | | 6 of the Illinois Pension Code . | 10 | | No funds received pursuant to this Section shall be used | 11 | | to advertise for or otherwise promote new competition in the | 12 | | hotel business. | 13 | | (Source: P.A. 101-204, eff. 8-2-19.) | 14 | | (65 ILCS 5/8-3-14a) | 15 | | Sec. 8-3-14a. Municipal hotel use tax. | 16 | | (a) The corporate authorities of any municipality may | 17 | | impose a tax upon the privilege of renting or leasing rooms in | 18 | | a hotel within the municipality at a rate not to exceed 5% of | 19 | | the rental or lease payment. The corporate authorities may | 20 | | provide for the administration and enforcement of the tax and | 21 | | for the collection thereof from the persons subject to the | 22 | | tax, as the corporate authorities determine to be necessary or | 23 | | practical for the effective administration of the tax. | 24 | | (b) Each hotel in the municipality shall collect the tax | 25 | | from the person making the rental or lease payment at the time |
| | | HB4192 | - 8 - | LRB103 34570 HLH 64407 b |
|
| 1 | | that the payment is tendered to the hotel. The hotel shall, as | 2 | | trustee, remit the tax to the municipality. | 3 | | (c) The tax authorized under this Section does not apply | 4 | | to any rental or lease payment by a permanent resident of that | 5 | | hotel or to any payment made to any hotel that is subject to | 6 | | the tax imposed under subsection (c) of Section 13 of the | 7 | | Metropolitan Pier and Exposition Authority Act. A municipality | 8 | | may not impose a tax under this Section if it imposes a tax | 9 | | under Section 8-3-14. Nothing in this Section may be construed | 10 | | to authorize a municipality to impose a tax upon the privilege | 11 | | of engaging in any business that under the Constitution of the | 12 | | United States may not be made the subject of taxation by this | 13 | | State. | 14 | | (d) Except as otherwise provided in this Division, the | 15 | | moneys collected by a municipality under this Section may be | 16 | | expended only for one or more of the following purposes: (1) | 17 | | solely to promote tourism and conventions within that | 18 | | municipality or otherwise to attract nonresident overnight | 19 | | visitors to the municipality ; or (2) to fund obligations of | 20 | | the municipality under Article 3, 4, 5, or 6 of the Illinois | 21 | | Pension Code . No moneys received under this Section may be | 22 | | used to advertise for or otherwise promote new competition in | 23 | | the hotel business. | 24 | | (e) As used in this Section, "hotel" has the meaning set | 25 | | forth in Section 2 of the Hotel Operators' Occupation Tax Act. | 26 | | (Source: P.A. 101-204, eff. 8-2-19.) |
| | | HB4192 | - 9 - | LRB103 34570 HLH 64407 b |
|
| 1 | | (65 ILCS 5/8-3-14b) | 2 | | (Section scheduled to be repealed on January 1, 2025) | 3 | | Sec. 8-3-14b. Municipal hotel operators' tax in DuPage | 4 | | County. For any municipality located within DuPage County that | 5 | | belongs to a not-for-profit organization headquartered in | 6 | | DuPage County that is recognized by the Department of Commerce | 7 | | and Economic Opportunity as a certified local tourism and | 8 | | convention bureau entitled to receive State tourism grant | 9 | | funds, not less than 75% of the amounts collected pursuant to | 10 | | Section 8-3-14 shall be expended by the municipality for the | 11 | | purposes authorized under Section 8-3-14 to promote tourism | 12 | | and conventions within that municipality or otherwise to | 13 | | attract nonresident overnight visitors to the municipality , | 14 | | and the remainder of the amounts collected by a municipality | 15 | | within DuPage County pursuant to Section 8-3-14 may be | 16 | | expended by the municipality for economic development or | 17 | | capital infrastructure. | 18 | | This Section is repealed on January 1, 2025. | 19 | | (Source: P.A. 101-204, eff. 8-2-19; 102-699, eff. 4-19-22.) | 20 | | (65 ILCS 5/8-3-14c) | 21 | | (Section scheduled to be repealed on January 1, 2025) | 22 | | Sec. 8-3-14c. Municipal hotel use tax in DuPage County. | 23 | | For any municipality located within DuPage County that belongs | 24 | | to a not-for-profit organization headquartered in DuPage |
| | | HB4192 | - 10 - | LRB103 34570 HLH 64407 b |
|
| 1 | | County that is recognized by the Department of Commerce and | 2 | | Economic Opportunity as a certified local tourism and | 3 | | convention bureau entitled to receive State tourism grant | 4 | | funds, not less than 75% of the amounts collected pursuant to | 5 | | Section 8-3-14a shall be expended by the municipality for the | 6 | | purposes authorized under Section 8-3-14 to promote tourism | 7 | | and conventions within that municipality or otherwise to | 8 | | attract nonresident overnight visitors to the municipality , | 9 | | and the remainder of the amounts collected by a municipality | 10 | | within DuPage County pursuant to Section 8-3-14a may be | 11 | | expended by the municipality for economic development or | 12 | | capital infrastructure. | 13 | | This Section is repealed on January 1, 2025. | 14 | | (Source: P.A. 101-204, eff. 8-2-19; 102-699, eff. 4-19-22.) |
|