Bill Text: IL SB1246 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Hotel Operators' Occupation Tax Act. Provides that the tax shall not apply to gross rental receipts received from the renting, leasing or letting of rooms to an entity that is organized and operated exclusively by an organization chartered by the United States Congress for the purpose of providing disaster relief and that possesses an active Exemption Identification Number issued by the Department of Revenue if the renting, leasing, or letting of the rooms is in furtherance of the purposes for which the exempt organization is organized. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2023-03-21 - Added as Co-Sponsor Sen. Dale Fowler [SB1246 Detail]

Download: Illinois-2023-SB1246-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1246 Introduced 2/2/2023, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:
35 ILCS 145/3 from Ch. 120, par. 481b.33
Amends the Hotel Operators' Occupation Tax Act. Provides that the tax shall not apply to gross rental receipts received from the renting, leasing or letting of rooms to an entity that is organized and operated exclusively by an organization chartered by the United States Congress for the purpose of providing disaster relief and that possesses an active Exemption Identification Number issued by the Department of Revenue if the renting, leasing, or letting of the rooms is in furtherance of the purposes for which the exempt organization is organized. Effective immediately.
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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 5. The Hotel Operators' Occupation Tax Act is
amended by changing Section 3 as follows:
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
Sec. 3. Rate; exemptions.
(a) A tax is imposed upon 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 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) There shall be imposed an additional tax upon 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 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

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Authority Act.
(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)
rent the rooms in furtherance of the purposes for which

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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.
(d-10) On and after July 1, 2023, the tax imposed by this
Act shall not apply to gross rental receipts received from the
renting, leasing, or letting of rooms to an entity that is
organized and operated exclusively by an organization
chartered by the United States Congress for the purpose of
providing disaster relief and that possesses an active
Exemption Identification Number issued by the Department
pursuant to the Retailers' Occupation Tax Act if the renting,
leasing, or letting of the rooms is in furtherance of the
purposes for which the exempt organization is organized. This
subsection (d-10) 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

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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
which are subject to tax under this Act, collects more from the
customer than the operators' hotel operators' occupation tax
liability in the transaction is, the 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
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.)
Section 99. Effective date. This Act takes effect upon
becoming law.