Bill Text: IL SB3858 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Provides that a municipality may expend no more than 75% of the amounts collected from the municipal hotel operators' occupation tax and municipal hotel use tax for the municipality's pension and infrastructure costs.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3858 Detail]

Download: Illinois-2019-SB3858-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3858 Introduced 2/14/2020, by Sen. John F. Curran SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-3-14 from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a
Amends the Illinois Municipal Code. Provides that a municipality may expend no more than 75% of the amounts collected from the municipal hotel operators' occupation tax and municipal hotel use tax for the municipality's pension and infrastructure costs.
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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 Sections 8-3-14 and 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.
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
conventions within that municipality or otherwise to attract
nonresident overnight visitors to the municipality, except
that no more than 75% of the amounts collected may be expended
for the municipality's pension and infrastructure costs.
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

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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) 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

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visitors to the municipality, except that no more than 75% of
the amounts collected may be expended for the municipality's
pension and infrastructure costs. 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.)