Bill Text: IL HB4192 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4192 Detail]

Download: Illinois-2023-HB4192-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4192 Introduced , 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.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Sections 8-3-13, 8-3-14, 8-3-14a, 8-3-14b, and
8-3-14c as follows:
(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,
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 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

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Operators' 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 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 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.

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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
Operators' 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

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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
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

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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
change or discontinuance. The amounts disbursed to any
municipality under this Section shall be expended by the
municipality only for one or more of the following purposes:
(1) solely to promote tourism, conventions and other special
events within that municipality or otherwise to attract
nonresidents to visit the municipality; or (2) to fund
obligations of the municipality under Article 3, 4, 5, or 6 of
the Illinois Pension Code.
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 operators' occupation tax.
The corporate authorities of any municipality may impose a tax

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upon all persons engaged in such municipality in the business
of renting, leasing or letting rooms in a hotel, as defined in
"The Hotel Operators' 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 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 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 Hotel
Operators' 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

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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 only for one or more of the
following purposes: (1) solely to promote tourism and
conventions within that municipality or otherwise to attract
nonresident overnight visitors to the municipality; or (2) to
fund obligations of the municipality under Article 3, 4, 5, or
6 of the Illinois Pension Code.
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 use tax.
(a) The corporate authorities of any municipality may
impose a tax upon the privilege of renting or leasing rooms in
a hotel 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 in the municipality shall collect the tax
from the person making the rental or lease payment at the time

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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
to any rental or lease payment by a permanent resident of that
hotel 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 only for one or more of the following purposes: (1)
solely to promote tourism and conventions within that
municipality or otherwise to attract nonresident overnight
visitors to the municipality; or (2) to fund obligations of
the municipality under Article 3, 4, 5, or 6 of the Illinois
Pension Code. 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.
(Source: P.A. 101-204, eff. 8-2-19.)

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(65 ILCS 5/8-3-14b)
(Section scheduled to be repealed on January 1, 2025)
Sec. 8-3-14b. Municipal hotel operators' tax in DuPage
County. For any municipality located within DuPage County that
belongs to a not-for-profit organization headquartered in
DuPage County that is recognized by the Department of Commerce
and Economic Opportunity as a certified local tourism and
convention bureau entitled to receive State tourism grant
funds, not less than 75% of the amounts collected pursuant to
Section 8-3-14 shall be expended by the municipality for the
purposes authorized under Section 8-3-14 to promote tourism
and conventions within that municipality or otherwise to
attract nonresident overnight visitors to the municipality,
and the remainder of the amounts collected by a municipality
within DuPage County pursuant to Section 8-3-14 may be
expended by the municipality for economic development or
capital infrastructure.
This Section is repealed on January 1, 2025.
(Source: P.A. 101-204, eff. 8-2-19; 102-699, eff. 4-19-22.)
(65 ILCS 5/8-3-14c)
(Section scheduled to be repealed on January 1, 2025)
Sec. 8-3-14c. Municipal hotel use tax in DuPage County.
For any municipality located within DuPage County that belongs
to a not-for-profit organization headquartered in DuPage

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