Bill Text: IL SB2772 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Municipal Code. Provides that not less than fifty percent of the amounts collected pursuant to the municipal hotel operators' occupation tax and municipal hotel use tax shall be used to promote tourism within that municipality. Provides that the remainder of the amounts collected may be used by the municipality for general corporate purposes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB2772 Detail]

Download: Illinois-2013-SB2772-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB2772 Introduced 1/30/2014, by Sen. Thomas Cullerton SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-3-14 from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a from Ch. 24, par. 8-3-14a
Amends the Municipal Code. Provides that not less than fifty percent of the amounts collected pursuant to the municipal hotel operators' occupation tax and municipal hotel use tax shall be used to promote tourism within that municipality. Provides that the remainder of the amounts collected may be used by the municipality for general corporate purposes.
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FISCAL NOTE ACT MAY APPLY
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 Section 8-3-14 and Section 8-3-14a as follows:
(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
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

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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
may not be made the subject of taxation by this State.
Not less than fifty percent of the The amounts collected by
any municipality pursuant to this Section shall be expended by
the municipality solely to promote tourism and conventions
within that municipality or otherwise to attract nonresident
overnight visitors to the municipality. The remainder of the
amounts collected by a municipality pursuant to this Section
may be expended by the municipality for general corporate
purposes.
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. 95-967, eff. 9-23-08; 96-238, eff. 8-11-09.)
(65 ILCS 5/8-3-14a)
Sec. 8-3-14a. Municipal hotel use tax.

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(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
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) Not less than fifty percent of the The moneys collected
by a municipality under this Section may be expended solely to
promote tourism and conventions within that municipality or

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otherwise to attract nonresident overnight visitors to the
municipality. The remainder of the amounts collected by a
municipality pursuant to this Section may be expended by the
municipality for general corporate purposes. 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. 96-238, eff. 8-11-09.)