Bill Text: IL SB2564 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Short-Term Rental Occupation Tax Act. Imposes taxes upon short-term rental transactions facilitated by a hosting platform. Provides that one tax is imposed at the rate of 5% of 94% of the gross rental receipts from the transaction. Provides that an additional tax is imposed at the rate of 1% of 94% of the gross rental receipts from the transaction. Provides that operators of short-term rentals shall obtain a business license from the Department of Revenue. Amends the Hotel Operators' Occupation Tax Act. Provides that re-renters of hotel rooms who meet certain criteria related to gross receipts or number of transactions are required to collect and remit the tax under the Act. Amends the Counties Code and the Illinois Municipal Code to make conforming changes. Effective January 1, 2024.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB2564 Detail]

Download: Illinois-2023-SB2564-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2564 Introduced 4/19/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 145/2 from Ch. 120, par. 481b.32
35 ILCS 145/3 from Ch. 120, par. 481b.33
35 ILCS 145/3-2 new
35 ILCS 145/3-3 new
35 ILCS 145/4 from Ch. 120, par. 481b.34
35 ILCS 145/5 from Ch. 120, par. 481b.35
35 ILCS 145/6 from Ch. 120, par. 481b.36
55 ILCS 5/5-1030 from Ch. 34, par. 5-1030
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
Creates the Short-Term Rental Occupation Tax Act. Imposes taxes upon short-term rental transactions facilitated by a hosting platform. Provides that one tax is imposed at the rate of 5% of 94% of the gross rental receipts from the transaction. Provides that an additional tax is imposed at the rate of 1% of 94% of the gross rental receipts from the transaction. Provides that operators of short-term rentals shall obtain a business license from the Department of Revenue. Amends the Hotel Operators' Occupation Tax Act. Provides that re-renters of hotel rooms who meet certain criteria related to gross receipts or number of transactions are required to collect and remit the tax under the Act. Amends the Counties Code and the Illinois Municipal Code to make conforming changes. Effective January 1, 2024.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Short-Term Rental Occupation Tax Act.
Section 5. Definitions. As used in this Act:
"Booking transaction" means a transaction in which a
hosting platform collects or receives compensation for
facilitating a rental of a short-term rental located in this
State by directly or indirectly allowing a reservation to be
made for an occupant or collecting or processing payments
through the hosting platform's online application, software,
website, or system.
"Department" means the Department of Revenue.
"Hosting platform" or "platform" means a person who
provides an online application, software, website, or system
through which a short-term rental located in this State is
advertised or held out to the public as available to rent for
occupancy.
"Hotel" has the same meaning as defined in the Hotel
Operators' Occupation Tax Act.
"Occupancy" means the use or possession by an occupant, or
the right to the use or possession by an occupant, of any room

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or rooms in a short-term rental for any purpose, or the right
of an occupant to the use or possession of the furnishings or
to the services and accommodations accompanying the use and
possession of the room or rooms.
"Operator" means any person operating a short-term rental.
"Permanent resident" means any person who occupies or has
the right to occupy a room or rooms in a short-term rental for
at least 30 consecutive days, regardless of whether the person
occupies the same room or rooms in the short-term rental
during the entire 30-day period.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
"Rent" or "rental" means the consideration received for an
occupant's occupancy, valued in money, whether received in
money or otherwise, including all receipts, cash, credits, and
property or services of any kind or nature.
"Room" or "rooms" means any living quarters, sleeping
accommodations, or housekeeping accommodations.
"Short-term rental" means an owner-occupied,
tenant-occupied, or non-owner-occupied dwelling, including,
but not limited to, an apartment, house, cottage, condominium,
or furnished accommodation, located in this State, where: (i)
at least one room in the dwelling is rented to an occupant for

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a period of less than 30 consecutive days; and (ii) all
accommodations are reserved in advance; provided, however,
that a dwelling shall be considered a single room if rented as
such. "Short-term rental" does not include:
(1) any dormitory or other living or sleeping facility
maintained by a public or private school, college, or
university for the use of students, faculty, or visitors;
(2) any facility certified or licensed and regulated
by the Department of Human Services or Department of
Public Health;
(3) any room in a condominium, cooperative, or
timeshare plan and any individually or collectively owned
single-family or multi-family dwelling house or room in
such dwelling that is rented for a period of at least 30
consecutive days and that is not advertised or held out to
the public as a place regularly rented for periods of less
than 30 consecutive days;
(4) any migrant labor camp or residential migrant
housing permitted by the Department of Public Health;
(5) a facility that provides housing only to patients,
patients' families, and patients' caregivers and not to
the general public and is owned and operated by a
nonprofit organization;
(6) any apartment building inspected by the United
States Department of Housing and Urban Development or
other entity acting on behalf of the United States

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Department of Housing and Urban Development that is
designated primarily as housing for persons at least 62
years of age. The Department may require the operator of
the apartment building to attest in writing that the
building meets the criteria provided in this paragraph;
the Department may adopt rules to implement this
requirement; or
(7) the rental, leasing, or letting of rooms or
accommodations for occupancy in a hotel.
Section 10. Rate; exemptions.
(a) A tax is imposed upon each hosting platform that
facilitates a short-term rental transaction in the State. The
tax is imposed at the rate of 5% of 94% of the gross rental
receipts from the short-term rental transaction.
(b) An additional tax is imposed upon each hosting
platform that facilitates a short-term rental transaction in
the State. That tax is imposed at the rate of 1% of 94% of the
gross rental receipts from the short-term rental transaction.
(c) No funds received pursuant to this Act shall be used to
advertise for or otherwise promote new competition in the
hotel industry.
(d) The taxes are not imposed upon the privilege of
engaging in any business in interstate commerce or otherwise,
which business may not, under the Constitution and statutes of
the United States, be made the subject of taxation by this

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State. In addition, the tax is not imposed upon gross rental
receipts for which the hosting platform is prohibited from
obtaining reimbursement for the tax from the customer by
reason of a federal treaty.
(e) The taxes imposed by this Act shall not apply to a
short-term rental transaction if:
(1) any of the parties to the transaction is an entity
that is organized and operated exclusively for religious
or charitable purposes;
(2) that party possesses an active Exemption
Identification Number issued by the Department pursuant to
the Retailers' Occupation Tax Act; and
(3) the short-term rental is in furtherance of the
purposes for which the religious or charitable entity is
organized.
(f) Persons subject to the tax imposed by this Act may
reimburse themselves for their tax liability under this Act by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
any tax imposed by any unit of local government.
(g) If a hosting platform collects an amount (however
designated) that purports to reimburse the platform for its
short-term rental occupation tax liability measured by
receipts that are not subject to the short-term rental
occupation tax, or if a hosting platform, in collecting an
amount (however designated) that purports to reimburse the

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platform for its short-term rental occupation tax liability
measured by receipts which are subject to tax under this Act,
collects more from the customer than the short-term rental
occupation tax liability from the transaction, then the
customer shall have a legal right to claim a refund of that
amount from the platform. However, if the amount is not
refunded to the customer for any reason, the hosting platform
is liable to pay that amount to the Department.
(h) The tax imposed under this Act shall be in addition to
all other occupation or privilege taxes imposed by the State
of Illinois or by any municipal corporation or political
subdivision thereof.
Section 15. Hosting platform collection and remittance of
taxes. Any hosting platform that facilitates a booking
transaction shall be required to: (i) assess, collect, report,
and remit the tax to the Department; (ii) maintain records of
any taxes collected under this Act that have been remitted to
the appropriate taxing body and submit these records to the
Department in accordance with this Act; and (iii) notify the
short-term rental operator that the operator must comply with
all applicable local, State, and federal laws, regulations,
and ordinances, including this Act.
Section 20. Hosting platforms.
(a) It is unlawful for any hosting platform to facilitate

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a booking transaction for a short-term rental located in this
State unless the hosting platform:
(1) is first registered with the Department in
accordance with subsection (d); and
(2) as a condition of registration with the
Department:
(A) has obtained written consent for the
disclosure of the information required under Section
25 of this Act, and the furnishing of such information
in accordance with Section 25 of this Act, from all
operators with short-term rentals located in this
State who intend to short-term rent those dwellings or
rooms within those dwellings through the platform; and
(B) has granted its own consent in writing for the
disclosure and furnishing of that information.
(b) It is unlawful for any hosting platform to facilitate
a booking transaction for a short-term rental located in this
State if the dwelling or room within the dwelling is not
lawfully registered, licensed, permitted, or otherwise allowed
as a short-term rental pursuant to an applicable local, State,
or federal law, regulation, or ordinance, including this Act,
at the time it is rented.
(c) Each hosting platform shall designate and maintain on
file with the Department an agent for service of process in
this State. If the registered agent is unable, with reasonable
diligence, to be located, or if the hosting platform fails to

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reasonably designate or maintain a registered agent in this
State, the Director may deem himself or herself or another
appropriate person an agent of the hosting platform for
purposes of accepting service of any process, notice, or
demand.
(d) The Department may issue a certificate of registration
to each hosting platform that meets the requirements of this
Act and the rules for hosting platform registration adopted
under this Act by the Department.
Section 25. Records and reporting.
(a) Notwithstanding any other provision of law or
Department action to the contrary:
(1) Every hosting platform shall keep separate books
and records of the hosting platform's business so as to
show the rents and occupancies that are taxable under this
Act separately from the transactions of the hosting
platform that are not taxable under this Act. If any
hosting platform fails to keep such separate books or
records, the hosting platform shall be liable to remit the
tax at the rate designated in this Act upon the entire
proceeds from the short-term rental. The Department may
adopt rules that establish requirements, including record
forms and formats, for records required to be kept and
maintained by taxpayers. For purposes of this Section,
"records" means all data maintained by the taxpayer,

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including data on paper, microfilm, microfiche, or any
type of machine-sensible data compilation.
(2) In accordance with rules adopted by the Department
and subject to applicable laws, for all booking
transactions it facilitates for short-term rentals located
in this State a hosting platform shall develop and
maintain a report that must include all of the following
information about each short-term rental booking
transaction:
(A) the name of the operator;
(B) the operator's or short-term rental's license,
registration, permit, or other number as applicable;
(C) the physical address;
(D) any room or dwelling designation;
(E) the individual periods of rental by calendar
date;
(F) the itemized amounts collected or processed by
the hosting platform for the rental, taxes, and all
other charges; and
(G) any additional information that the Department
may require by rule.
(b) The hosting platform shall submit the report to the
Department monthly in the format requested by the Department
and shall make the report, as well as any underlying records
requested by the Department, available for audit by the
Department upon the Department's request. The Department may

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issue and serve subpoenas and compel the production of the
report and underlying records as necessary to enforce hosting
platform compliance with this Section. Such underlying records
may not include copies of specific message exchanges between
the hosting platform and an operator, short-term rental
renter, or occupant, or between the operator and short-term
rental renter or occupant.
(c) The hosting platform shall maintain the report and
underlying records for at least 3 years, in accordance with
any rules adopted by the Department.
(d) The Department shall share the report, sections of the
report, underlying records, or any combination of those items,
with an agency or local government of this State to ensure
compliance with this Act, the laws of this State, and any local
laws, regulations, or ordinances.
(e) The Department may use the report and underlying
records for tax auditing purposes, and local governments may
use the reports and underlying records to ensure compliance
with laws, ordinances, or regulations.
(f) A hosting platform may not facilitate a booking
transaction for a short-term rental located in this State
unless the operator consents to the hosting platform's
disclosure of the information required by this Section.
(g) A hosting platform that operates in violation of this
Section or the rules of the Department adopted under this Act
shall be subject to fines up to $1,000 per offense and to

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suspension, revocation, or refusal of a registration issued
pursuant to this Act. For purposes of this subsection, the
Department may regard as a separate offense each booking
transaction a hosting platform facilitates in violation of
this Act or the rules of the Department or each calendar day
that such violation persists.
Section 30. State business licensing.
(a) Before an operator engages in the business of a
short-term rental in this State, the operator shall obtain a
business license from the Department. In order to obtain a
business license from the Department, the operator must first
provide evidence to the Department that the short-term rental
is lawfully registered, licensed, permitted, or otherwise
allowed to operate as a short-term rental pursuant to the
applicable local law, regulation, or ordinance.
(b) An operator's business license number issued by the
Department must be displayed on any advertisement or listing
of a short-term rental and be physically displayed within the
short-term rental.
(c) If the Department notifies a hosting platform in
writing that an advertisement or listing for a short-term
rental in this State fails to display a valid business license
number issued by the Department, the hosting platform must
remove all advertisements or listings for that short-term
rental from its online application, software, website, or

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system within 3 business days unless the listing is otherwise
brought into compliance with the law.
(d) The Department shall revoke or refuse to issue or
renew a short-term rental operator's business license when:
(i) the Department determines that the operation of the
subject short-term rental violates the terms of an applicable
lease or property restriction; or (ii) the Department
determines that the operation of the short-term rental
violates a State, federal, or local law, ordinance, or
regulation, or the short-term rental operator is the subject
of a final order or judgment lawfully directing the
termination of the premises' use as a short-term rental.
Section 35. Filing of returns and distribution of
proceeds. Except as provided in this Section, on or before the
last day of each calendar month, each hosting platform that is
liable for the tax under this Act during the preceding
calendar month shall file a return for the preceding calendar
month with the Department, stating:
(1) the name of the hosting platform;
(2) the address of the principal place of business
from which the hosting platform engages in the business of
facilitating short-term rentals in this State;
(3) the total amount of rental receipts received by
the hosting platform during the preceding calendar month
from renting, leasing or letting rooms in this State

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during the preceding calendar month;
(4) the total amount of other exclusions from gross
rental receipts allowed by this Act;
(5) gross rental receipts that were received by the
hosting platform during the preceding calendar month and
upon the basis of which the tax is imposed;
(6) the amount of tax due; and
(7) such other reasonable information as the
Department may require.
If the hosting platform's average monthly tax liability to
the Department under this Act does not exceed $200, the
Department may authorize the platform's 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 hosting platform's average monthly tax liability to
the Department under this Act does not exceed $50, the
Department may authorize the platform's 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

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monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which the hosting platform may file his
return, in the case of any hosting platform that ceases to
engage in a kind of business which makes the hosting platform
responsible for filing returns under this Act, such platform
shall file a final return under this Act with the Department
not more than one month after discontinuing that business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, that 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 the return under this Act, the taxpayer shall determine
the value of any consideration other than money received by
him in connection with the renting, leasing, or letting of
rooms in this State in the course of his business, and the
taxpayer shall include such value in his return. Such
determination shall be subject to review and revision by the
Department in the manner provided in this Act for the
correction of returns.
Where the taxpayer 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.

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The person filing the return shall, at the time of filing
such return, pay to the Department the amount of the tax
imposed under this Act, less a discount of 2.1% or $25 per
calendar year, whichever is greater, which is allowed to
reimburse the hosting platform for the expenses incurred in
keeping records, preparing and filing returns, remitting the
tax and supplying information to the Department on request.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the Department may authorize the taxpayer to credit
the 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 taxpayer, the taxpayer'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 taxpayer shall be liable for penalties
and interest on such difference.
The proceeds collected from the tax under this Act shall
be deposited into the same funds and in the same manner as
proceeds are deposited under Section 6 of the Hotel Operators'
Occupation Tax Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department not less than 60 days after receipt of the notice,

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on a form prescribed by the Department, an annual information
return for the tax year specified in the notice. The annual
return to the Department shall include a statement of gross
receipts as shown by the taxpayer'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
taxpayer shall attach to his annual information return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual information
return to the Department shall also disclose payroll
information for the taxpayer's business during the year
covered by the return and any additional reasonable
information that the Department deems to be helpful in
determining the accuracy of the monthly, quarterly, or annual
tax returns 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 the
return is filed as required. That 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 in the return. Any

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person who willfully signs the annual return containing false
or inaccurate information is guilty of perjury. The annual
return form prescribed by the Department shall include a
warning that the person signing the return may be liable for
perjury.
The provisions of this Section concerning the filing of an
annual information return shall not apply to a taxpayer who is
not required to file an income tax return with the United
States Government.
Section 40. Incorporation of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act
shall apply to persons in the business of renting, leasing, or
letting short-term rental rooms in this State to the same
extent as if such provisions were included herein.
Section 45. Recordkeeping. When the amount due is under
$300, any hosting platform that (i) fails to make a return
under this Act, (ii) fails to keep books and records as
required by this Act, (iii) makes a fraudulent return under
this Act, or (iv) willfully violates any rule of the
Department for the administration and enforcement of this Act
is guilty of a Class 4 felony. When the amount due is under

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$300, any officer or agent of a hosting platform who signs a
fraudulent return made on behalf of the hosting platform is
guilty of a Class 4 felony.
Any person who violates any provision of Section 5 of this
Act is guilty of a Class 4 felony. Each and every day any such
person is engaged in business in violation of said Section 5
shall constitute a separate offense.
When the amount due is under $300, any person who accepts
money that is due to the Department under this Act from a
taxpayer for the purpose of acting as the taxpayer's agent to
make the payment to the Department, but who fails to remit such
payment to the Department when due is guilty of a Class 4
felony. Any such person who purports to make such payment by
issuing or delivering a check or other order upon a real or
fictitious depository for the payment of money, knowing that
it will not be paid by the depository, shall be guilty of a
deceptive practice in violation of Section 17-1 of the
Criminal Code of 2012.
Any hosting platform that collects or attempts to collect
an amount (however designated) that purports to reimburse the
hosting platform for a short-term rental operators' occupation
tax liability measured by receipts that the hosting platform
knows are not subject to short-term rental operators'
occupation tax, or any hosting platform that knowingly
over-collects or attempts to over-collect an amount purporting
to reimburse such operator for short-term operators'

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occupation tax liability in a transaction that is subject to
the tax that is imposed by this Act, is guilty of a Class 4
felony.
When the amount due is $300 or more, any hosting platform
that (i) fails to make a return under this Act, (ii) fails to
keep books and records as required by this Act, (iii) makes a
fraudulent return under this Act, or (iv) willfully violates
any rule of the Department for the administration and
enforcement of this Act is guilty of a Class 3 felony. When the
amount due is $300 or more, any officer or agent of a hosting
platform who signs a fraudulent return made on behalf of the
hosting platform is guilty of a Class 3 felony.
When the amount due is $300 or more, any person who accepts
money that is due to the Department under this Act from a
taxpayer for the purpose of acting as the taxpayer's agent to
make the payment to the Department, but who fails to remit such
payment to the Department is guilty of a Class 3 felony. Any
such person who purports to make such payment by issuing or
delivering a check or other order upon a real or fictitious
depository for the payment of money, knowing that it will not
be paid by the depository, shall be guilty of a deceptive
practice in violation of Section 17-1 of the Criminal Code of
2012.
A prosecution for any act in violation of this Section may
be commenced at any time within 3 years of the commission of
that act.

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Section 50. Intergovernmental sharing of information. Any
information collected by the Department pursuant to this Act
shall not be subject to the Freedom of Information Act.
Information collected pursuant to this Act by the Department
may be shared with local units of government upon request,
provided that the information is treated as confidential at
all times by the local unit of government.
Section 55. Local regulation. A unit of local government
may adopt an ordinance or resolution regulating short-term
rental activities within that unit of local government that
imposes requirements not inconsistent with nor less stringent
than those imposed by this Act.
Section 60. Severability. If any provision of this Act, in
part or in full, or its application to any person, entity, or
circumstance is held invalid, the invalidity does not affect
other provisions or applications of the Act which can be given
effect without the invalid provision or application, and to
this end the provisions of this Act are severable.
Section 900. The Hotel Operators' Occupation Tax Act is
amended by changing Sections 2, 3, 4, 5, and 6 and by adding
Sections 3-2 and 3-3 as follows:

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(35 ILCS 145/2) (from Ch. 120, par. 481b.32)
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
(1) "Hotel" means any building or buildings in which the
public may, for a consideration, obtain living quarters,
sleeping or housekeeping accommodations. The term includes,
but is not limited to, inns, motels, tourist homes or courts,
lodging houses, rooming houses and apartment houses, retreat
centers, conference centers, and hunting lodges.
(2) "Operator" means any person engaged in the business of
renting, leasing, or letting rooms in operating a hotel.
(3) "Occupancy" means the use or possession, or the right
to the use or possession, of any room or rooms in a hotel for
any purpose, or the right to the use or possession of the
furnishings or to the services and accommodations accompanying
the use and possession of the room or rooms.
(4) "Room" or "rooms" means any living quarters, sleeping
or housekeeping accommodations.
(5) "Permanent resident" means any person who occupied or
has the right to occupy any room or rooms, regardless of
whether or not it is the same room or rooms, in a hotel for at
least 30 consecutive days.
(6) "Rent" or "rental" means the consideration received
for occupancy, valued in money, whether received in money or
otherwise, including all receipts, cash, credits and property
or services of any kind or nature."Rent" or "rental" includes

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any fee, charge, or commission received by a re-renter of
hotel rooms specifically in connection with the re-rental of
hotel rooms.
(7) "Department" means the Department of Revenue.
(8) "Person" means any natural individual, firm,
partnership, association, joint stock company, joint
adventure, public or private corporation, limited liability
company, or a receiver, executor, trustee, guardian or other
representative appointed by order of any court.
(9) "Re-renter of hotel rooms" means a person who is not
employed by the hotel operator but who (i) obtains from the
hotel operator the right or authority to grant control of,
access to, or occupancy of a hotel room in this State to a
guest of the hotel or (ii) facilitates the booking of a hotel
room located in this State. A person who obtains those rights
or authorities from the hotel operator is not considered a
re-renter of a hotel room if the person operates under a shared
hotel brand with the operator.
(Source: P.A. 100-213, eff. 8-18-17.)
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
Sec. 3. Rate; exemptions.
(a) A tax is imposed upon hotel operators persons engaged
in the business of renting, leasing or letting rooms in a hotel
at the rate of 5% of 94% of the gross rental receipts from
engaging in business as a hotel operator such renting, leasing

SB2564 - 23 - LRB103 31564 HLH 59703 b
or letting, excluding, however, from gross rental receipts,
the proceeds of such renting, leasing or letting hotel rooms
to permanent residents of a that hotel and proceeds from the
tax imposed under subsection (c) of Section 13 of the
Metropolitan Pier and Exposition Authority Act.
(b) There shall be imposed an additional tax upon hotel
operators persons engaged in the business of renting, leasing
or letting rooms in a hotel at the rate of 1% of 94% of the
gross rental receipts it receives from engaging in the
business as a hotel operator such renting, leasing or letting,
excluding, however, from gross rental receipts, the proceeds
of such renting, leasing or letting to permanent residents of
that hotel and proceeds from the tax imposed under subsection
(c) of Section 13 of the Metropolitan Pier and Exposition
Authority Act.
(b-5) Beginning on January 1, 2024, if the renting,
leasing, or letting of a hotel room is done through a re-renter
of hotel rooms who meets either of the following thresholds,
then, subject to the provisions of Section 3-2 and 3-3, the
re-renter is considered the hotel operator for the purposes of
the taxes under subsections (a) and (b):
(1) the cumulative gross receipts from rentals in
Illinois by the re-renter of hotel rooms are $100,000 or
more; or
(2) the re-renter of hotel rooms cumulatively enters
into 200 or more separate transactions for rentals in

SB2564 - 24 - LRB103 31564 HLH 59703 b
Illinois.
A re-renter of hotel rooms shall determine on a quarterly
basis, ending on the last day of March, June, September, and
December, whether he or she meets the threshold of either
paragraph (1) or (2) of this subsection (a-5) for the
preceding 12-month period. If the re-renter of hotel rooms
meets the threshold of either paragraph (1) or (2) for a
12-month period, he or she is subject to tax under this Act and
is required to remit the tax imposed under this Act and file
returns for the 12-month period beginning on the first day of
the next month after he or she determines that he or she meets
the threshold of paragraph (1) or (2). At the end of that
12-month period, the re-renter of hotel rooms shall determine
whether he or she continued to meet the threshold of either
paragraph (1) or (2) during the preceding 12-month period. If
he or she met the threshold in either paragraph (1) or (2) for
the preceding 12-month period, he or she is considered a hotel
operator in this State and is required to remit the tax imposed
under this Act and file returns for the subsequent 12-month
period. If, at the end of a 12-month period during which a
re-renter is required to remit the tax imposed under this Act,
the re-renter determines that he or she did not meet the
threshold in either paragraph (1) or (2) during the preceding
12-month period, he or she shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the threshold

SB2564 - 25 - LRB103 31564 HLH 59703 b
of either paragraph (1) or (2) for the preceding 12-month
period.
(c) No funds received pursuant to this Act shall be used to
advertise for or otherwise promote new competition in the
hotel business.
(d) However, such tax is not imposed upon the privilege of
engaging in any business in Interstate Commerce or otherwise,
which business may not, under the Constitution and Statutes of
the United States, be made the subject of taxation by this
State. In addition, the tax is not imposed upon gross rental
receipts for which the hotel operator is prohibited from
obtaining reimbursement for the tax from the customer by
reason of a federal treaty.
(d-5) On and after July 1, 2017, the tax imposed by this
Act shall not apply to gross rental receipts received by an
entity that is organized and operated exclusively for
religious purposes and possesses an active Exemption
Identification Number issued by the Department pursuant to the
Retailers' Occupation Tax Act when acting as a hotel operator
renting, leasing, or letting rooms:
(1) in furtherance of the purposes for which it is
organized; or
(2) to entities that (i) are organized and operated
exclusively for religious purposes, (ii) possess an active
Exemption Identification Number issued by the Department
pursuant to the Retailers' Occupation Tax Act, and (iii)

SB2564 - 26 - LRB103 31564 HLH 59703 b
rent the rooms in furtherance of the purposes for which
they are organized.
No gross rental receipts are exempt under paragraph (2) of
this subsection (d-5) unless the hotel operator obtains the
active Exemption Identification Number from the exclusively
religious entity to whom it is renting and maintains that
number in its books and records. Gross rental receipts from
all rentals other than those described in items (1) or (2) of
this subsection (d-5) are subject to the tax imposed by this
Act unless otherwise exempt under this Act.
This subsection (d-5) is exempt from the sunset provisions
of Section 3-5 of this Act.
(e) Persons subject to the tax imposed by this Act may
reimburse themselves for their tax liability under this Act by
separately stating such tax as an additional charge, which
charge may be stated in combination, in a single amount, with
any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
Illinois Municipal Code, and Section 25.05-10 of "An Act to
revise the law in relation to counties".
(f) If any hotel operator collects an amount (however
designated) which purports to reimburse such operator for
hotel operators' occupation tax liability measured by receipts
which are not subject to hotel operators' occupation tax, or
if any hotel operator, in collecting an amount (however
designated) which purports to reimburse such operator for
hotel operators' occupation tax liability measured by receipts

SB2564 - 27 - LRB103 31564 HLH 59703 b
which are subject to tax under this Act, collects more from the
guest customer than the operators' hotel operators' occupation
tax liability in the transaction is, the guest customer shall
have a legal right to claim a refund of such amount from such
operator. However, if such amount is not refunded to the guest
customer for any reason, the hotel operator is liable to pay
such amount to the Department.
(Source: P.A. 100-213, eff. 8-18-17.)
(35 ILCS 145/3-2 new)
Sec. 3-2. No resale exemption; tax incurred by re-renters
of hotel rooms. A hotel operator who rents, leases, or lets
rooms subject to tax under this Act to a re-renter of hotel
rooms incurs the tax under this Act on the gross rental
receipts it receives from that re-renter of hotel rooms and
cannot claim any resale exemption. In such situations, the
re-renter of hotel rooms incurs tax under this Act on its gross
rental receipts as provided in Section 3 of this Act.
(35 ILCS 145/3-3 new)
Sec. 3-3. Re-renter of hotel rooms; credit for tax
reimbursement. A re-renter of hotel rooms may take a credit
against the tax it incurs on the rental of a hotel room under
this Act for the amount it paid under subsection (f) of Section
3 of this Act to a hotel operator as reimbursement for the tax
incurred under this Act for the rental of that room for the

SB2564 - 28 - LRB103 31564 HLH 59703 b
purposes of re-rental.
(35 ILCS 145/4) (from Ch. 120, par. 481b.34)
Sec. 4. Books and records. Every operator shall keep
separate books or records of his business as an operator so as
to show the rents and occupancies taxable under this Act
separately from his transactions not taxable under this Act.
If any operator fails to keep such separate books or records,
he shall be liable to tax at the rate designated in Section 3
hereof upon the entire proceeds from his business hotel. The
Department may adopt rules that establish requirements,
including record forms and formats, for records required to be
kept and maintained by taxpayers. For purposes of this
Section, "records" means all data maintained by the taxpayer,
including data on paper, microfilm, microfiche or any type of
machine-sensible data compilation.
(Source: P.A. 88-480.)
(35 ILCS 145/5) (from Ch. 120, par. 481b.35)
Sec. 5. Certificate of registration; retailers' occupation
tax registration provisions apply. It shall be unlawful for
any person to engage in the business as a hotel operator of
renting, leasing or letting rooms in a hotel in this State
without a certificate of registration from the Department.
All of the provisions of Sections 2a and 2b of the
Retailers' Occupation Tax Act, in effect on the effective date

SB2564 - 29 - LRB103 31564 HLH 59703 b
of this Act, as subsequently amended, shall apply to persons
in the business as hotel operators of renting, leasing or
letting rooms in a hotel in this State, to the same extent as
if such provisions were included herein.
(Source: Laws 1961, p. 1728.)
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Returns; allocation of proceeds Filing of returns
and distribution of proceeds. Except as provided hereinafter
in this Section, on or before the last day of each calendar
month, every person engaged as a hotel operator 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 as a hotel
operator of renting, leasing or letting rooms in a hotel
in this State (including, if required by the Department,
the address of each hotel from which rental receipts were
received);
3. Total amount of rental receipts received by him
during the preceding calendar month from engaging in
business as a hotel operator renting, leasing or letting

SB2564 - 30 - LRB103 31564 HLH 59703 b
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. Credit for any reimbursement of tax paid by a
re-renter of hotel rooms to hotel operators for rentals
purchased for re-rental, as provided in Section 3-3 of
this Act;
9. 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

SB2564 - 31 - LRB103 31564 HLH 59703 b
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 engaging in business as a hotel operator 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

SB2564 - 32 - LRB103 31564 HLH 59703 b
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

SB2564 - 33 - LRB103 31564 HLH 59703 b
actually due, and that operator shall be liable for penalties
and interest on such difference.
There shall be deposited in the Build Illinois Fund in the
State Treasury for each State fiscal year 40% of the amount of
total net proceeds from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%, $5,000,000 shall be deposited
in 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 an additional
$8,000,000 shall be deposited in 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
$8,000,000 plus any cumulative deficiencies in such deposits
for prior months; provided, that for fiscal years ending after
June 30, 2001, the amount to be so deposited into the Illinois
Sports Facilities Fund and credited to the Advance Account
each fiscal year shall be increased from $8,000,000 to the
then applicable Advance Amount and the required monthly
deposits beginning with July 2001 shall be in the amount of 1/8
of the then applicable Advance Amount plus any cumulative
deficiencies in those deposits for prior months. (The deposits
of the additional $8,000,000 or the then applicable Advance
Amount, as applicable, 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

SB2564 - 34 - LRB103 31564 HLH 59703 b
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 proceeds
prior to August 1, 2011 from the tax imposed by subsection (a)
of Section 3 after all required deposits in the Illinois
Sports Facilities Fund, the amount equal to 8% of the net
revenue realized from this Act plus an amount equal to 8% of
the net revenue realized from any tax imposed under Section
4.05 of the Chicago World's Fair-1992 Authority Act during the
preceding month shall be deposited in the Local Tourism Fund
each month for purposes authorized by Section 605-705 of the
Department of Commerce and Economic Opportunity Law (20 ILCS
605/605-705). Of the remaining 60% of the amount of total net
proceeds beginning on August 1, 2011 from the tax imposed by

SB2564 - 35 - LRB103 31564 HLH 59703 b
subsection (a) of Section 3 after all required deposits in the
Illinois Sports Facilities Fund, an amount equal to 8% of the
net revenue realized from this Act plus an amount equal to 8%
of the net revenue realized from any tax imposed under Section
4.05 of the Chicago World's Fair-1992 Authority 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, 1999 and ending on
July 31, 2011, an amount equal to 4.5% of the net revenue
realized from the Hotel Operators' Occupation Tax Act during
the preceding month shall be deposited into the International
Tourism Fund for the purposes authorized in Section 605-707 of
the Department of Commerce and Economic Opportunity Law.
Beginning on August 1, 2011, 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

SB2564 - 36 - LRB103 31564 HLH 59703 b
the Department of Commerce and Economic Opportunity Law. "Net
revenue realized for a month" means the revenue collected by
the State under that Act during the previous month less the
amount paid out during that same month as refunds to taxpayers
for overpayment of liability under that Act.
After making all these deposits, all other proceeds of the
tax imposed under subsection (a) of Section 3 shall be
deposited in 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.
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 pay roll
information of the operator's business during the year covered

SB2564 - 37 - LRB103 31564 HLH 59703 b
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.)
Section 905. The Counties Code is amended by changing

SB2564 - 38 - LRB103 31564 HLH 59703 b
Section 5-1030 as follows:
(55 ILCS 5/5-1030) (from Ch. 34, par. 5-1030)
Sec. 5-1030. Hotel rooms, short-term rentals, tax on gross
rental receipts.
(a) The corporate authorities of any county may by
ordinance impose a tax upon all persons engaged in such county
in the business of renting, leasing or letting rooms in a hotel
or short-term rental which is not located within a city,
village, or incorporated town that imposes a tax under Section
8-3-14 of the Illinois Municipal Code, as defined in the "The
Hotel Operators' Occupation Tax Act or the Short-Term Rental
Occupation Tax Act ", at a rate not to exceed 5% of the gross
rental receipts from such renting, leasing or letting,
excluding, however, from gross rental receipts, the proceeds
of such renting, leasing or letting to permanent residents of
that hotel or short-term rental, and may provide for the
administration and enforcement of the tax, and for the
collection thereof from the persons subject to the tax, as the
corporate authorities determine to be necessary or practicable
for the effective administration of the tax.
(b) With the consent of municipalities representing at
least 67% of the population of Winnebago County, as determined
by the 2010 federal decennial census and as expressed by
resolution of the corporate authorities of those
municipalities, the county board of Winnebago County may, by

SB2564 - 39 - LRB103 31564 HLH 59703 b
ordinance, impose a tax upon all persons engaged in the county
in the business of renting, leasing, or letting rooms in a
hotel or short-term rental that imposes a tax under Section
8-3-14 of the Illinois Municipal Code, as defined in the "The
Hotel Operators' Occupation Tax Act" or the Short-Term Rental
Occupation Tax Act, at a rate not to exceed 2% of the gross
rental receipts from renting, leasing, or letting, excluding,
however, from gross rental receipts, the proceeds of the
renting, leasing, or letting to permanent residents of that
hotel or short-term rental, and may provide for the
administration and enforcement of the tax, and for the
collection thereof from the persons subject to the tax, as the
county board determines to be necessary or practicable for the
effective administration of the tax. The tax shall be
instituted on a county-wide basis and shall be in addition to
any tax imposed by this or any other provision of law. The
revenue generated under this subsection shall be accounted for
and segregated from all other funds of the county and shall be
utilized solely for either: (1) encouraging, supporting,
marketing, constructing, or operating, either directly by the
county or through other taxing bodies within the county,
sports, arts, or other entertainment or tourism facilities or
programs for the purpose of promoting tourism,
competitiveness, job growth, and for the general health and
well-being of the citizens of the county; or (2) payment
towards debt services on bonds issued for the purposes set

SB2564 - 40 - LRB103 31564 HLH 59703 b
forth in this subsection.
(c) A Tourism Facility Board shall be established,
comprised of a representative from the county and from each
municipality that has approved the imposition of the tax under
subsection (b) of this Section.
(1) A Board member's vote is weighted based on the
municipality's population relative to the population of
the county, with the county representing the population
within unincorporated areas of the county. Representatives
from the Rockford Park District and Rockford Area
Convention and Visitors Bureau shall serve as ex-officio
members with no voting rights.
(2) The Board must meet not less frequently than once
per year to direct the use of revenues collected from the
tax imposed under subsection (b) of this Section that are
not already directed for use pursuant to an
intergovernmental agreement between the county and another
entity represented on the Board, including the ex-officio
members, and for any other reason the Board deems
necessary. Affirmative actions of the Board shall require
a weighted vote of Board members representing not less
than 67% of the population of the county.
(3) The Board shall not be a separate unit of local
government, shall have no paid staff, and members of the
Board shall receive no compensation or reimbursement of
expenses from proceeds of the tax imposed under subsection

SB2564 - 41 - LRB103 31564 HLH 59703 b
(b) of this Section.
(d) Persons subject to any tax imposed pursuant to
authority granted by this Section may reimburse themselves for
their tax liability for such tax by separately stating such
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax imposed under
the "The Hotel Operators' Occupation Tax Act" or the
Short-Term Rental Occupation Tax Act.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing a tax hereunder or
effecting a change in the rate thereof shall be effective on
the first day of the calendar month next following its passage
and required publication.
The amounts collected by any county pursuant to this
Section shall be expended to promote tourism; conventions;
expositions; theatrical, sports and cultural activities within
that county or otherwise to attract nonresident overnight
visitors to the county.
Any county may agree with any unit of local government,
including any authority defined as a metropolitan exposition,
auditorium and office building authority, fair and exposition
authority, exposition and auditorium authority, or civic
center authority created pursuant to provisions of Illinois

SB2564 - 42 - LRB103 31564 HLH 59703 b
law and the territory of which unit of local government or
authority is co-extensive with or wholly within such county,
to impose and collect for a period not to exceed 40 years, any
portion or all of the tax authorized pursuant to this Section
and to transmit such tax so collected to such unit of local
government or authority. The amount so paid shall be expended
by any such unit of local government or authority for the
purposes for which such tax is authorized. Any such agreement
must be authorized by resolution or ordinance, as the case may
be, of such county and unit of local government or authority,
and such agreement may provide for the irrevocable imposition
and collection of said tax at such rate, or amount as limited
by a given rate, as may be agreed upon for the full period of
time set forth in such agreement; and such agreement may
further provide for any other terms as deemed necessary or
advisable by such county and such unit of local government or
authority. Any such agreement shall be binding and enforceable
by either party to such agreement. Such agreement entered into
pursuant to this Section shall not in any event constitute an
indebtedness of such county subject to any limitation imposed
by statute or otherwise.
(Source: P.A. 98-313, eff. 8-12-13.)
Section 910. The Illinois Municipal Code is amended by
changing Sections 8-3-13, 8-3-14, and 8-3-14a as follows:

SB2564 - 43 - LRB103 31564 HLH 59703 b
(65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13)
Sec. 8-3-13. The corporate authorities of any municipality
containing 500,000 or more inhabitants may impose a tax prior
to July 1, 1969, upon all persons engaged in the municipality
in the business of renting, leasing or letting rooms in a
hotel, as defined in the Hotel Operators' Occupation Tax Act,
or a short-term rental, as defined in the Short-Term Rental
Occupation Tax Act, at a rate not to exceed 1% of the gross
rental receipts from the renting, leasing or letting,
excluding, however, from gross rental receipts, the proceeds
of the renting, leasing or letting to permanent residents of
that hotel or short-term rental and proceeds from the tax
imposed under subsection (c) of Section 13 of the Metropolitan
Pier and Exposition Authority Act.
The tax imposed by a municipality under this Section and
all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration that is
issued by the Department to a lessor under the Hotel
Operators' Occupation Tax Act, or a business license issued by
the Department under the Short-Term Rental Occupation Tax Act,
shall permit the registrant to engage in a business that is
taxable under any ordinance or resolution enacted under this
Section without registering separately with the Department
under the ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce

SB2564 - 44 - LRB103 31564 HLH 59703 b
this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner provided in this Section; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in the Hotel Operators'
Occupation Tax Act, the Short-Term Rental Occupation Tax Act,
and the Uniform Penalty and Interest Act, as fully as if the
provisions contained in those Acts were set forth herein.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Illinois tourism tax fund.
Persons subject to any tax imposed under authority granted
by this Section may reimburse themselves for their tax
liability for that tax by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax imposed under the Hotel

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Operators' Occupation Tax Act or the Short-Term Rental
Occupation Tax Act.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder. On or before the 25th day of each
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named municipalities from which lessors have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department, and not including an amount
equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
municipality, less 4% of the balance, which sum shall be
retained by the State Treasurer to cover the costs incurred by
the Department in administering and enforcing the provisions
of this Section, as provided herein. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the Comptroller the amount so retained
by the State Treasurer, which shall be paid into the General
Revenue Fund of the State Treasury.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the municipalities and the
General Revenue Fund provided for in this Section to be given

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to the Comptroller by the Department, the Comptroller shall
cause the warrants to be drawn for the respective amounts in
accordance with the directions contained in the certification.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business that, under the Constitution of the United
States, may not be made the subject of taxation by this State.
An ordinance or resolution imposing a tax hereunder or
effecting a change in the rate thereof shall be effective on
the first day of the calendar month next following the
expiration of the publication period provided in Section 1-2-4
in respect to municipalities governed by that Section.
The corporate authorities of any municipality that levies
a tax authorized by this Section shall transmit to the
Department of Revenue on or not later than 5 days after the
effective date of the ordinance or resolution a certified copy
of the ordinance or resolution imposing the tax; whereupon,
the Department of Revenue shall proceed to administer and
enforce this Section on behalf of the municipality as of the
effective date of the ordinance or resolution. Upon a change
in rate of a tax levied hereunder, or upon the discontinuance
of the tax, the corporate authorities of the municipality
shall, on or not later than 5 days after the effective date of
the ordinance or resolution discontinuing the tax or effecting
a change in rate, transmit to the Department of Revenue a
certified copy of the ordinance or resolution effecting the

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change or discontinuance. The amounts disbursed to any
municipality under this Section shall be expended by the
municipality solely to promote tourism, conventions and other
special events within that municipality or otherwise to
attract nonresidents to visit the municipality.
Any municipality receiving and disbursing money under this
Section shall report on or before the first Monday in January
of each year to the Advisory Committee of the Illinois Tourism
Promotion Fund, created by Section 12 of the Illinois
Promotion Act. The reports shall specify the purposes for
which the disbursements were made and shall contain detailed
amounts of all receipts and disbursements under this Section.
This Section may be cited as the Tourism, Conventions and
Other Special Events Promotion Act of 1967.
(Source: P.A. 87-205; 87-733; 87-895.)
(65 ILCS 5/8-3-14) (from Ch. 24, par. 8-3-14)
Sec. 8-3-14. Municipal hotel and short-term rental
operators' occupation tax. The corporate authorities of any
municipality may impose a tax upon all persons engaged in such
municipality in the business of renting, leasing or letting
rooms in a hotel, as defined in the "The Hotel Operators'
Occupation Tax Act," or a short-term rental, as defined in the
Short-Term Rental Occupation Tax Act, at a rate not to exceed
6% in the City of East Peoria and in the Village of Morton and
5% in all other municipalities of the gross rental receipts

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from such renting, leasing or letting, excluding, however,
from gross rental receipts, the proceeds of such renting,
leasing or letting to permanent residents of that hotel or
short-term rental and proceeds from the tax imposed under
subsection (c) of Section 13 of the Metropolitan Pier and
Exposition Authority Act, and may provide for the
administration and enforcement of the tax, and for the
collection thereof from the persons subject to the tax, as the
corporate authorities determine to be necessary or practicable
for the effective administration of the tax. The municipality
may not impose a tax under this Section if it imposes a tax
under Section 8-3-14a.
Persons subject to any tax imposed pursuant to authority
granted by this Section may reimburse themselves for their tax
liability for such tax by separately stating such tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax imposed under the "The Hotel
Operators' Occupation Tax Act" or the Short-Term Rental
Occupation Tax Act.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
Except as otherwise provided in this Division, the amounts
collected by any municipality pursuant to this Section shall
be expended by the municipality solely to promote tourism and

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conventions within that municipality or otherwise to attract
nonresident overnight visitors to the municipality.
No funds received pursuant to this Section shall be used
to advertise for or otherwise promote new competition in the
hotel business.
(Source: P.A. 101-204, eff. 8-2-19.)
(65 ILCS 5/8-3-14a)
Sec. 8-3-14a. Municipal hotel or short-term rental use
tax.
(a) The corporate authorities of any municipality may
impose a tax upon the privilege of renting or leasing rooms in
a hotel or short-term rental within the municipality at a rate
not to exceed 5% of the rental or lease payment. The corporate
authorities may provide for the administration and enforcement
of the tax and for the collection thereof from the persons
subject to the tax, as the corporate authorities determine to
be necessary or practical for the effective administration of
the tax.
(b) Each hotel, short-term rental operator, or hosting
platform acting as an agent for the short-term rental operator
in the municipality shall collect the tax from the person
making the rental or lease payment at the time that the payment
is tendered to the hotel. The hotel shall, as trustee, remit
the tax to the municipality.
(c) The tax authorized under this Section does not apply

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to any rental or lease payment by a permanent resident of that
hotel or short-term rental or to any payment made to any hotel
that is subject to the tax imposed under subsection (c) of
Section 13 of the Metropolitan Pier and Exposition Authority
Act. A municipality may not impose a tax under this Section if
it imposes a tax under Section 8-3-14. Nothing in this Section
may be construed to authorize a municipality to impose a tax
upon the privilege of engaging in any business that under the
Constitution of the United States may not be made the subject
of taxation by this State.
(d) Except as otherwise provided in this Division, the
moneys collected by a municipality under this Section may be
expended solely to promote tourism and conventions within that
municipality or otherwise to attract nonresident overnight
visitors to the municipality. No moneys received under this
Section may be used to advertise for or otherwise promote new
competition in the hotel business.
(e) As used in this Section, "hotel" has the meaning set
forth in Section 2 of the Hotel Operators' Occupation Tax Act.
(f) As used in this Section, "short-term rental" and
"hosting platform" have the meanings set forth in Section 5 of
the Short-Term Rental Occupation Tax Act.
(Source: P.A. 101-204, eff. 8-2-19.)
Section 999. Effective date. This Act takes effect January
1, 2024.