Bill Text: IL SB3068 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Hotel Operators' Occupation Tax Act. Defines "hotel marketplace" and "hotel marketplace facilitator". Provides that hotel marketplace facilitators that meet specified tax remittance thresholds are considered to be hotel operators for the purposes of the taxes under the Act. Provides that a marketplace facilitator that is considered a hotel operator is required to remit the applicable taxes under the Act and any local hotel operators' occupation taxes administered by the Department of Revenue on all rentals, leases, or lettings of Illinois hotel rooms made by the hotel marketplace facilitator or facilitated for marketplace hotel operators to guests. Effective July 1, 2026.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-05-22 - Rule 3-9(a) / Re-referred to Assignments [SB3068 Detail]

Download: Illinois-2025-SB3068-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB3068 Introduced 1/28/2026, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
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
35 ILCS 145/3-3
35 ILCS 145/6 from Ch. 120, par. 481b.36
Amends the Hotel Operators' Occupation Tax Act. Defines "hotel marketplace" and "hotel marketplace facilitator". Provides that hotel marketplace facilitators that meet specified tax remittance thresholds are considered to be hotel operators for the purposes of the taxes under the Act. Provides that a marketplace facilitator that is considered a hotel operator is required to remit the applicable taxes under the Act and any local hotel operators' occupation taxes administered by the Department of Revenue on all rentals, leases, or lettings of Illinois hotel rooms made by the hotel marketplace facilitator or facilitated for marketplace hotel operators to guests. Effective July 1, 2026.
LRB104 17480 HLH 30906 b
A BILL FOR
SB3068 LRB104 17480 HLH 30906 b
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 Sections 2, 3, 3-2, 3-3, and 6 as follows:
(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, hunting lodges, and short-term
rentals.
(2) "Operator" means any person engaged in the business of
renting, leasing, or letting rooms in 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

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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
any fee, charge, or commission received from a guest 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, either directly or
indirectly, through agreements or arrangements with third
parties, collects or processes the payment of rent for a hotel
room located in this State and (i) obtains 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.

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A person who obtains those rights or authorities is not
considered a re-renter of a hotel room if the person operates
under a shared hotel brand with the operator.
(10) "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. For purposes of this definition, "short-term
rental" means an owner-occupied, tenant-occupied, or
non-owner-occupied dwelling, including, but not limited to, an
apartment, house, cottage, or condominium, located in this
State, where: (i) at least one room in the dwelling is rented
to an occupant for 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.
(11) "Shared hotel brand" means an identifying trademark
that a hotel operator is expressly licensed to operate under
in accordance with the terms of a hotel franchise or
management agreement.
(12) "Hotel marketplace" means a physical or electronic
place, forum, platform, application, or other method by which
marketplace hotel operators rent, lease, or let or offer to
rent, lease, or let rooms in a hotel.
(13) "Hotel marketplace facilitator" means a person who,
pursuant to agreements with unrelated third-party marketplace

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hotel operators, directly or indirectly through one or more
affiliates facilitates the renting, leasing, or letting of
rooms in hotels by unrelated third-party marketplace hotel
operators by:
(A) listing or advertising hotel rooms for rent,
lease, or letting by marketplace hotel operators in a
hotel marketplace if that renting, leasing, or letting is
subject to tax under this Act; and
(B) collecting, either directly or indirectly, through
agreements or arrangements with third parties, payment
from customers and transmitting those payments to the
marketplace hotel operator, regardless of whether the
hotel marketplace facilitator receives compensation or
other consideration in exchange for its services.
"Hotel marketplace facilitator" includes re-renters of
hotel rooms and hosting platforms for short-term rentals who
otherwise meet the definition of "hotel marketplace
facilitator" set forth in this item (13).
(14) "Marketplace hotel operator" means a person who
rents, leases, or lets rooms in a hotel through a hotel
marketplace operated by an unrelated third-party hotel
marketplace facilitator.
(Source: P.A. 103-592, eff. 7-1-24; 104-6, eff. 7-1-25;
104-417, eff. 8-15-25.)
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)

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Sec. 3. Rate; exemptions.
(a) A tax is imposed upon hotel operators at the rate of 5%
of 94% of the gross rental receipts from engaging in business
as a hotel operator, excluding, however, from gross rental
receipts, the proceeds of renting, leasing or letting hotel
rooms to permanent residents of a 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 at the rate of 1% of 94% of the gross rental receipts
received by the hotel operator from engaging in business as a
hotel operator, 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 July 1, 2024 and through June 30, 2026,
if the renting, leasing, or letting of a hotel room is done
through a re-renter of hotel rooms, then, subject to the
provisions of Sections 3-2 and 3-3, the re-renter is the hotel
operator for the purposes of the taxes under subsections (a)
and (b). If the re-renter is headquartered outside of this
State and has no presence in this State other than its business
as a re-renter, conducted remotely, then, subject to the
provisions of Sections 3-2 and 3-3, such re-renter is the
hotel operator for the purposes of the taxes under subsections

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(a) and (b) if it meets one of the following thresholds:
(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
Illinois.
A re-renter of hotel rooms who is headquartered outside of
this State and has no presence in this State other than its
business as a re-renter, conducted remotely, 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 (b-5) for the
preceding 12-month period. If such 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, such 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 a hotel operator in
this State and is required to remit the tax imposed under this

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Act and file returns for the subsequent 12-month period. If,
at the end of a 12-month period during which such 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 of either
paragraph (1) or (2) for the preceding 12-month period.
(b-10) On and after July 1, 2026, if the renting, leasing,
or letting of a hotel room is done through a hotel marketplace
facilitator that has met the tax remittance threshold under
this subsection (b-10), then the hotel marketplace facilitator
is the hotel operator for the purposes of the taxes under this
Act. A hotel marketplace facilitator is engaged in the
business of renting, leasing, or letting rooms in a hotel in
Illinois and meets the tax remittance threshold for purposes
of this Act if, during the previous 12-month period, the
cumulative gross rental receipts from renting, leasing, or
letting rooms in Illinois hotels on its own behalf or on behalf
of marketplace hotel operators to guests are greater than or
equal to $100,000.
A hotel marketplace facilitator that meets the tax
remittance threshold of this subsection is required to remit
the applicable State hotel operators' occupation taxes under
this Act and any local hotel operators' occupation taxes

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administered by the Department on all rentals, leases, or
lettings of Illinois hotel rooms made by the hotel marketplace
facilitator or facilitated for marketplace hotel operators to
guests. A hotel marketplace facilitator who meets the tax
remittance threshold and rents, leases, or lets Illinois hotel
rooms to guests is subject to all applicable procedures and
requirements of this Act.
A hotel marketplace facilitator shall determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether it meets the tax remittance
threshold in this subsection (b-10) for the preceding 12-month
period. If the hotel marketplace facilitator meets the tax
remittance threshold for a 12-month period, it is subject to
tax under this Act and is required to remit the tax imposed
under this Act and all hotel operators' occupation tax imposed
by local taxing jurisdictions in Illinois, provided that those
local taxes are administered by the Department, and to file
all applicable returns for one year. At the end of that
one-year period, the hotel marketplace facilitator shall
determine whether it met the tax remittance threshold for the
preceding 12-month period. If the hotel marketplace
facilitator met the tax remittance threshold for the preceding
12-month period, it is subject to the tax under this Act and is
required to continue to collect and remit all applicable State
and local hotel operators' occupation taxes and file returns
for the subsequent year. If at the end of a one-year period a

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hotel marketplace facilitator that was required to collect and
remit the tax imposed under this Act determines that it did not
meet the tax remittance threshold during the preceding
12-month period, the hotel marketplace facilitator shall
subsequently determine on a quarterly basis, ending on the
last day of March, June, September, and December, whether it
meets the tax remittance threshold for the preceding 12-month
period.
A hotel marketplace facilitator is entitled to any
credits, deductions, or adjustments to rental receipts
otherwise provided to the marketplace hotel operator, in
addition to any such adjustments provided directly to the
hotel marketplace facilitator. This includes, but is not
limited to, adjustments, such as discounts, coupons, and
rebates. In addition, a hotel marketplace facilitator shall be
entitled to the discount provided in Section 6 of this Act on
all hotel marketplace rentals, leases, or lettings, and the
marketplace hotel operator shall not include rentals, leases,
or lettings made through a hotel marketplace facilitator when
computing any discount on remaining rentals, leases, or
lettings. Hotel marketplace facilitators shall report and
remit the applicable State and local hotel operators'
occupation taxes on leases, rentals, or lettings facilitated
for marketplace hotel operators separately from any hotel
operators' occupation tax on taxable rentals, leases, or
lettings made directly by the hotel marketplace facilitator or

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its affiliates.
The hotel marketplace facilitator is liable for the
remittance of all applicable State hotel operators' occupation
taxes under this Act and any local hotel operators' occupation
taxes administered by the Department on rentals, leases, or
lettings made through the hotel marketplace and is subject to
audit on all such rentals, leases, or lettings. The Department
shall not audit marketplace hotel operators for their
marketplace rentals, leases, or lettings if the hotel
marketplace facilitator remitted the applicable State and
local hotel operators' occupation taxes unless the hotel
marketplace facilitator seeks relief as a result of incorrect
information provided to the hotel marketplace facilitator by a
marketplace hotel operator as set forth in this Section. The
hotel marketplace facilitator shall not be held liable for tax
on any rentals, leases, or lettings made by a marketplace
hotel operator that take place outside of the hotel
marketplace and that is not a part of any agreement between a
hotel marketplace facilitator and a marketplace hotel
operator. In addition, hotel marketplace facilitators shall
not be held liable to State and local governments of Illinois
for having charged and remitted an incorrect amount of State
and local hotel operators' occupation tax if, at the time of
the rentals, leases, or lettings, the tax is computed based on
erroneous data provided by the State on tax rates, boundaries,
or taxing jurisdictions or incorrect information provided to

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the hotel marketplace facilitator by the marketplace hotel
operator.
(b-15) A hotel marketplace facilitator shall:
(1) certify to each marketplace hotel operator that
the hotel marketplace facilitator assumes the rights and
duties of a hotel operator under this Act with respect to
rentals, leases, or lettings made by the marketplace hotel
operator through the hotel marketplace; and
(2) remit taxes imposed by this Act as required by
this Act for rentals, leases, and lettings made through
the hotel marketplace.
(b-20) A marketplace hotel operator shall retain books and
records for all rentals, leases, and lettings made through a
hotel marketplace in accordance with the requirements of this
Act.
(b-25) A hotel marketplace facilitator is subject to audit
on all hotel marketplace rentals, leases, and lettings for
which it is considered to be the hotel operator, but shall not
be liable for tax or subject to audit on rentals, leases, or
lettings made by marketplace hotel operators outside of the
hotel marketplace.
(b-30) Nothing in this Section shall allow the Department
to collect hotel operators' occupation taxes from both the
hotel marketplace facilitator and marketplace hotel operator
on the same transaction.
(b-35) If, for any reason, the Department is prohibited

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from enforcing the hotel marketplace facilitator's duty under
this Act to remit taxes pursuant to this Section, the duty to
remit such taxes remains with the marketplace hotel operator.
(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

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pursuant to the Retailers' Occupation Tax Act, and (iii)
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.
(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

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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
which are subject to tax under this Act, collects more from the
guest or, until July 1, 2026, from the re-renter than the
operators' hotel operators' occupation tax liability in the
transaction is, the guest or re-renter, as applicable, 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
or re-renter, as applicable, for any reason, the hotel
operator is liable to pay such amount to the Department.
(Source: P.A. 103-9, eff. 6-7-23; 103-592, eff. 7-1-24.)
(35 ILCS 145/3-2)
Sec. 3-2. No resale exemption for transactions before July
1, 2026; hotel marketplace facilitators subject to tax

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beginning July 1, 2026 ; tax incurred by re-renters of hotel
rooms. Until July 1, 2026, a A hotel operator who rents,
leases, or lets rooms subject to tax under this Act through 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, subject to a credit as provided in Section 3-3 for
any reimbursement of tax paid to the hotel operator under
subsection (e) of Section 3 of this Act.
Beginning July 1, 2026, a hotel operator who rents,
leases, or lets rooms subject to tax under this Act through a
re-renter of hotel rooms, a hosting platform for short-term
rentals, or through any other person who meets the definition
of a hotel marketplace facilitator and who meets the tax
remittance threshold under this Act does not incur the tax
under this Act, except as otherwise provided under subsection
(b-35) of Section 3. Instead, the hotel marketplace
facilitator incurs the tax under this Act in accordance with
the provisions of Section 3.
(Source: P.A. 103-592, eff. 7-1-24.)
(35 ILCS 145/3-3)
Sec. 3-3. Re-renter of hotel rooms; credit for tax
reimbursement. For transactions before July 1, 2026, a A

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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 (e) 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 purposes of
re-rental.
(Source: P.A. 103-592, eff. 7-1-24.)
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Returns; allocation of proceeds.
(a) 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 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 business as a hotel
operator 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 during such preceding

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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. for transactions before July 1, 2026, 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. 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

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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 one month after discontinuing such
business.
Where the same person has more than one 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 and
he shall include such value in his return. Such determination
shall be subject to review and revision by the Department in

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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
actually due, and that operator shall be liable for penalties

SB3068 - 20 - LRB104 17480 HLH 30906 b
and interest on such difference.
(b) Until July 1, 2024, the Department shall deposit the
total net revenue realized from the tax imposed under this Act
as provided in this subsection (b). Beginning on July 1, 2024,
the Department shall deposit the total net revenue realized
from the tax imposed under this Act as provided in subsection
(c).
There shall be deposited into the Build Illinois Fund in
the State treasury for each State fiscal year 40% of the amount
of total net revenue from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%: (i) $5,000,000 shall be
deposited into 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
(ii) an amount equal to the then applicable Advance Amount, as
defined in subsection (d), shall be deposited into 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 the then applicable Advance Amount plus any
cumulative deficiencies in such deposits for prior months.
(The deposits of the then applicable Advance Amount 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 Authority or its trustee and
shall be repaid into the General Revenue Fund in the State

SB3068 - 21 - LRB104 17480 HLH 30906 b
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.)
Of the remaining 60% of the amount of total net revenue
beginning on August 1, 2011 through June 30, 2023, from the tax
imposed by subsection (a) of Section 3 after all required
deposits into the Illinois Sports Facilities Fund, an amount
equal to 8% of the net revenue realized from this 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, 2011 and through June
30, 2023, 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

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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 the Department
of Commerce and Economic Opportunity Law.
Beginning on July 1, 2023 and until July 1, 2024, of the
remaining 60% of the amount of total net revenue realized from
the tax imposed under subsection (a) of Section 3, after all
required deposits into the Illinois Sports Facilities Fund:
(1) an amount equal to 8% of the net revenue realized
under this Act for the preceding month shall be deposited
as follows: 82% to the Local Tourism Fund and 18% to the
Chicago Travel Industry Promotion Fund; and
(2) an amount equal to 4.5% of the net revenue
realized under this Act for the preceding month shall be
deposited as follows: 55% to the Chicago Travel Industry
Promotion Fund and 45% to the International Tourism Fund.
After making all these deposits, any remaining net revenue
realized from the tax imposed under subsection (a) of Section
3 shall be deposited into 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.
(c) Beginning on July 1, 2024, the total net revenue
realized from the tax imposed under this Act for the preceding
month shall be deposited each month as follows:

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(1) 50% shall be deposited into the Build Illinois
Fund; and
(2) the remaining 50% shall be deposited in the
following order of priority:
(A) First:
(i) $5,000,000 shall be deposited into the
Illinois Sports Facilities Fund and credited to
the Subsidy Account each fiscal year by making
monthly deposits in the amount of one-eighth of
$5,000,000 plus cumulative deficiencies in those
deposits for prior months; and
(ii) an amount equal to the then applicable
Advance Amount, as defined in subsection (d),
shall be deposited into the Illinois Sports
Facilities Fund and credited to the Advance
Account each fiscal year by making monthly
deposits in the amount of one-eighth of the then
applicable Advance Amount plus any cumulative
deficiencies in such deposits for prior months;
the deposits of the then applicable Advance Amount
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 Illinois Sports Facilities
Authority or its trustee and shall be repaid into
the General Revenue Fund in the State treasury by

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the State Treasurer on behalf of the Authority
pursuant to Section 19 of the Illinois Sports
Facilities Authority Act; if, in any fiscal year,
the full amount of the 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; and
(B) after all required deposits into the Illinois
Sports Facilities Fund under paragraph (A) have been
made each month, the remainder shall be deposited as
follows:
(i) 56% into the Tourism Promotion Fund;
(ii) 23% into the Local Tourism Fund;
(iii) 14% into the Chicago Travel Industry
Promotion Fund; and
(iv) 7% into the International Tourism Fund.
(d) As used in subsections (b) and (c):
"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.
"Net revenue realized" means the revenue collected by the
State under this Act less the amount paid out as refunds to
taxpayers for overpayment of liability under this Act.

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(e) 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 payroll
information of the operator's business during the year covered
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.

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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. 103-8, eff. 6-7-23; 103-592, eff. 7-1-24;
103-642, eff. 7-1-24; 104-417, eff. 8-15-25.)
Section 99. Effective date. This Act takes effect July 1,
2026.