Bill Text: IL HB2918 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Hotel Operators' Occupation Tax Act. Provides that an additional tax shall be imposed at the rate of 1% of 94% of the gross rental receipts from the renting, leasing, or letting of hotel rooms. Provides that the proceeds from the additional tax shall be deposited into the Illinois Experience Fund. Provides that moneys in the Illinois Experience Fund shall be used to create, enhance, and promote artistic and cultural events and expositions in the State. Amends the State Finance Act to create the Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB2918 Detail]

Download: Illinois-2019-HB2918-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2918 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED:
35 ILCS 145/3 from Ch. 120, par. 481b.33
35 ILCS 145/6 from Ch. 120, par. 481b.36
30 ILCS 105/5.891 new
Amends the Hotel Operators' Occupation Tax Act. Provides that an additional tax shall be imposed at the rate of 1% of 94% of the gross rental receipts from the renting, leasing, or letting of hotel rooms. Provides that the proceeds from the additional tax shall be deposited into the Illinois Experience Fund. Provides that moneys in the Illinois Experience Fund shall be used to create, enhance, and promote artistic and cultural events and expositions in the State. Amends the State Finance Act to create the Fund. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
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 Sections 3 and 6 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 Authority Act.

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(b-5) Beginning on July 1, 2019, 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 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,

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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
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.
(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
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".

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(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.)
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Filing of returns and distribution of proceeds.
Except as provided hereinafter in this Section, on or
before the last day of each calendar month, every person
engaged in the business of renting, leasing or letting rooms in
a hotel 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

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address) from which he engages in the business of renting,
leasing or letting rooms in a hotel in this State;
3. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms during such preceding 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. 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 1 month after discontinuing such
business.
Where the same person has more than 1 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 the renting, leasing or letting of rooms in the
course of his business and he shall include such value in his
return. Such determination shall be subject to review and
revision by the Department in the manner hereinafter provided

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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

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and interest on such difference.
Beginning on July 1, 2019, the additional tax imposed by
subsection (b-5) of Section 3 shall be deposited into the
Illinois Experience Fund, a special fund created in the State
treasury. Moneys in the Illinois Experience Fund shall be used
to create, enhance, and promote artistic and cultural events
and expositions in the State.
There shall be deposited in the Build Illinois Fund in the
State Treasury for each State fiscal year 40% of the amount of
total net proceeds from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%, $5,000,000 shall be deposited
in 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 an additional $8,000,000
shall be deposited in 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 $8,000,000 plus any
cumulative deficiencies in such deposits for prior months;
provided, that for fiscal years ending after June 30, 2001, the
amount to be so deposited into the Illinois Sports Facilities
Fund and credited to the Advance Account each fiscal year shall
be increased from $8,000,000 to the then applicable Advance
Amount and the required monthly deposits beginning with July
2001 shall be in the amount of 1/8 of the then applicable
Advance Amount plus any cumulative deficiencies in those

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deposits for prior months. (The deposits of the additional
$8,000,000 or the then applicable Advance Amount, as
applicable, 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 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.)
For purposes of the foregoing paragraph, the term "Advance
Amount" means, for fiscal year 2002, $22,179,000, and for
subsequent fiscal years through fiscal year 2032, 105.615% of
the Advance Amount for the immediately preceding fiscal year,
rounded up to the nearest $1,000.
Of the remaining 60% of the amount of total net proceeds
prior to August 1, 2011 from the tax imposed by subsection (a)
of Section 3 after all required deposits in the Illinois Sports
Facilities Fund, the amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding

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month shall be deposited in the Local Tourism Fund each month
for purposes authorized by Section 605-705 of the Department of
Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
the remaining 60% of the amount of total net proceeds beginning
on August 1, 2011 from the tax imposed by subsection (a) of
Section 3 after all required deposits in the Illinois Sports
Facilities Fund, an amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority 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, 1999 and ending on July 31, 2011,
an amount equal to 4.5% of the net revenue realized from the
Hotel Operators' Occupation Tax Act during the preceding month
shall be 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 August 1,
2011, 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

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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 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. "Net revenue realized for a month"
means the revenue collected by the State under that Act during
the previous month less the amount paid out during that same
month as refunds to taxpayers for overpayment of liability
under that Act.
After making all these deposits, all other proceeds of the
tax imposed under subsection (a) of Section 3 shall be
deposited in 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.
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

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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 pay roll
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.
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

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who is not required to file an income tax return with the
United States Government.
(Source: P.A. 100-23, eff. 7-6-17; 100-1171, eff. 1-4-19.)
Section 90. The State Finance Act is amended by adding
Section 5.891 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Illinois Experience Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.