Bill Text: IL HB4192 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Illinois Municipal Code. Provides that amounts disbursed to a municipality from its municipal hotel operators' occupation or use tax may also be used by the municipality to fund pensions for police officers and firefighters.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4192 Detail]

Download: Illinois-2023-HB4192-Introduced.html

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4192

Introduced , by Rep. Mary Beth Canty

SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-3-13 from Ch. 24, par. 8-3-13
65 ILCS 5/8-3-14 from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a
65 ILCS 5/8-3-14b
65 ILCS 5/8-3-14c

Amends the Illinois Municipal Code. Provides that amounts disbursed to a municipality from its municipal hotel operators' occupation or use tax may also be used by the municipality to fund pensions for police officers and firefighters.
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A BILL FOR

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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5changing Sections 8-3-13, 8-3-14, 8-3-14a, 8-3-14b, and
68-3-14c as follows:
7 (65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13)
8 Sec. 8-3-13. The corporate authorities of any municipality
9containing 500,000 or more inhabitants may impose a tax prior
10to July 1, 1969, upon all persons engaged in the municipality
11in the business of renting, leasing or letting rooms in a
12hotel, as defined in the Hotel Operators' Occupation Tax Act,
13at a rate not to exceed 1% of the gross rental receipts from
14the renting, leasing or letting, excluding, however, from
15gross rental receipts, the proceeds of the renting, leasing or
16letting to permanent residents of that hotel and proceeds from
17the tax imposed under subsection (c) of Section 13 of the
18Metropolitan Pier and Exposition Authority Act.
19 The tax imposed by a municipality under this Section and
20all civil penalties that may be assessed as an incident
21thereof shall be collected and enforced by the State
22Department of Revenue. The certificate of registration that is
23issued by the Department to a lessor under the Hotel

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1Operators' Occupation Tax Act shall permit the registrant to
2engage in a business that is taxable under any ordinance or
3resolution enacted under this Section without registering
4separately with the Department under the ordinance or
5resolution or under this Section. The Department shall have
6full power to administer and enforce this Section; to collect
7all taxes and penalties due hereunder; to dispose of taxes and
8penalties so collected in the manner provided in this Section;
9and to determine all rights to credit memoranda arising on
10account of the erroneous payment of tax or penalty hereunder.
11In the administration of and compliance with this Section, the
12Department and persons who are subject to this Section shall
13have the same rights, remedies, privileges, immunities, powers
14and duties, and be subject to the same conditions,
15restrictions, limitations, penalties and definitions of terms,
16and employ the same modes of procedure, as are prescribed in
17the Hotel Operators' Occupation Tax Act and the Uniform
18Penalty and Interest Act, as fully as if the provisions
19contained in those Acts were set forth herein.
20 Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing a
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the warrant to be drawn for the
24amount specified, and to the person named, in the notification
25from the Department. The refund shall be paid by the State
26Treasurer out of the Illinois tourism tax fund.

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1 Persons subject to any tax imposed under authority granted
2by this Section may reimburse themselves for their tax
3liability for that tax by separately stating the tax as an
4additional charge, which charge may be stated in combination,
5in a single amount, with State tax imposed under the Hotel
6Operators' Occupation Tax Act.
7 The Department shall forthwith pay over to the State
8Treasurer, ex-officio, as trustee, all taxes and penalties
9collected hereunder. On or before the 25th day of each
10calendar month, the Department shall prepare and certify to
11the Comptroller the disbursement of stated sums of money to
12named municipalities from which lessors have paid taxes or
13penalties hereunder to the Department during the second
14preceding calendar month. The amount to be paid to each
15municipality shall be the amount (not including credit
16memoranda) collected hereunder during the second preceding
17calendar month by the Department, and not including an amount
18equal to the amount of refunds made during the second
19preceding calendar month by the Department on behalf of the
20municipality, less 4% of the balance, which sum shall be
21retained by the State Treasurer to cover the costs incurred by
22the Department in administering and enforcing the provisions
23of this Section, as provided herein. The Department, at the
24time of each monthly disbursement to the municipalities, shall
25prepare and certify to the Comptroller the amount so retained
26by the State Treasurer, which shall be paid into the General

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1Revenue Fund of the State Treasury.
2 Within 10 days after receipt by the Comptroller of the
3disbursement certification to the municipalities and the
4General Revenue Fund provided for in this Section to be given
5to the Comptroller by the Department, the Comptroller shall
6cause the warrants to be drawn for the respective amounts in
7accordance with the directions contained in the certification.
8 Nothing in this Section shall be construed to authorize a
9municipality to impose a tax upon the privilege of engaging in
10any business that, under the Constitution of the United
11States, may not be made the subject of taxation by this State.
12 An ordinance or resolution imposing a tax hereunder or
13effecting a change in the rate thereof shall be effective on
14the first day of the calendar month next following the
15expiration of the publication period provided in Section 1-2-4
16in respect to municipalities governed by that Section.
17 The corporate authorities of any municipality that levies
18a tax authorized by this Section shall transmit to the
19Department of Revenue on or not later than 5 days after the
20effective date of the ordinance or resolution a certified copy
21of the ordinance or resolution imposing the tax; whereupon,
22the Department of Revenue shall proceed to administer and
23enforce this Section on behalf of the municipality as of the
24effective date of the ordinance or resolution. Upon a change
25in rate of a tax levied hereunder, or upon the discontinuance
26of the tax, the corporate authorities of the municipality

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1shall, on or not later than 5 days after the effective date of
2the ordinance or resolution discontinuing the tax or effecting
3a change in rate, transmit to the Department of Revenue a
4certified copy of the ordinance or resolution effecting the
5change or discontinuance. The amounts disbursed to any
6municipality under this Section shall be expended by the
7municipality only for one or more of the following purposes:
8(1) solely to promote tourism, conventions and other special
9events within that municipality or otherwise to attract
10nonresidents to visit the municipality; or (2) to fund
11obligations of the municipality under Article 3, 4, 5, or 6 of
12the Illinois Pension Code.
13 Any municipality receiving and disbursing money under this
14Section shall report on or before the first Monday in January
15of each year to the Advisory Committee of the Illinois Tourism
16Promotion Fund, created by Section 12 of the Illinois
17Promotion Act. The reports shall specify the purposes for
18which the disbursements were made and shall contain detailed
19amounts of all receipts and disbursements under this Section.
20 This Section may be cited as the Tourism, Conventions and
21Other Special Events Promotion Act of 1967.
22(Source: P.A. 87-205; 87-733; 87-895.)
23 (65 ILCS 5/8-3-14) (from Ch. 24, par. 8-3-14)
24 Sec. 8-3-14. Municipal hotel operators' occupation tax.
25The corporate authorities of any municipality may impose a tax

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1upon all persons engaged in such municipality in the business
2of renting, leasing or letting rooms in a hotel, as defined in
3"The Hotel Operators' Occupation Tax Act," at a rate not to
4exceed 6% in the City of East Peoria and in the Village of
5Morton and 5% in all other municipalities of the gross rental
6receipts from such renting, leasing or letting, excluding,
7however, from gross rental receipts, the proceeds of such
8renting, leasing or letting to permanent residents of that
9hotel and proceeds from the tax imposed under subsection (c)
10of Section 13 of the Metropolitan Pier and Exposition
11Authority Act, and may provide for the administration and
12enforcement of the tax, and for the collection thereof from
13the persons subject to the tax, as the corporate authorities
14determine to be necessary or practicable for the effective
15administration of the tax. The municipality may not impose a
16tax under this Section if it imposes a tax under Section
178-3-14a.
18 Persons subject to any tax imposed pursuant to authority
19granted by this Section may reimburse themselves for their tax
20liability for such tax by separately stating such tax as an
21additional charge, which charge may be stated in combination,
22in a single amount, with State tax imposed under "The Hotel
23Operators' Occupation Tax Act".
24 Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the constitution of the United States

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1may not be made the subject of taxation by this State.
2 Except as otherwise provided in this Division, the amounts
3collected by any municipality pursuant to this Section shall
4be expended by the municipality only for one or more of the
5following purposes: (1) solely to promote tourism and
6conventions within that municipality or otherwise to attract
7nonresident overnight visitors to the municipality; or (2) to
8fund obligations of the municipality under Article 3, 4, 5, or
96 of the Illinois Pension Code.
10 No funds received pursuant to this Section shall be used
11to advertise for or otherwise promote new competition in the
12hotel business.
13(Source: P.A. 101-204, eff. 8-2-19.)
14 (65 ILCS 5/8-3-14a)
15 Sec. 8-3-14a. Municipal hotel use tax.
16 (a) The corporate authorities of any municipality may
17impose a tax upon the privilege of renting or leasing rooms in
18a hotel within the municipality at a rate not to exceed 5% of
19the rental or lease payment. The corporate authorities may
20provide for the administration and enforcement of the tax and
21for the collection thereof from the persons subject to the
22tax, as the corporate authorities determine to be necessary or
23practical for the effective administration of the tax.
24 (b) Each hotel in the municipality shall collect the tax
25from the person making the rental or lease payment at the time

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1that the payment is tendered to the hotel. The hotel shall, as
2trustee, remit the tax to the municipality.
3 (c) The tax authorized under this Section does not apply
4to any rental or lease payment by a permanent resident of that
5hotel or to any payment made to any hotel that is subject to
6the tax imposed under subsection (c) of Section 13 of the
7Metropolitan Pier and Exposition Authority Act. A municipality
8may not impose a tax under this Section if it imposes a tax
9under Section 8-3-14. Nothing in this Section may be construed
10to authorize a municipality to impose a tax upon the privilege
11of engaging in any business that under the Constitution of the
12United States may not be made the subject of taxation by this
13State.
14 (d) Except as otherwise provided in this Division, the
15moneys collected by a municipality under this Section may be
16expended only for one or more of the following purposes: (1)
17solely to promote tourism and conventions within that
18municipality or otherwise to attract nonresident overnight
19visitors to the municipality; or (2) to fund obligations of
20the municipality under Article 3, 4, 5, or 6 of the Illinois
21Pension Code. No moneys received under this Section may be
22used to advertise for or otherwise promote new competition in
23the hotel business.
24 (e) As used in this Section, "hotel" has the meaning set
25forth in Section 2 of the Hotel Operators' Occupation Tax Act.
26(Source: P.A. 101-204, eff. 8-2-19.)

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1 (65 ILCS 5/8-3-14b)
2 (Section scheduled to be repealed on January 1, 2025)
3 Sec. 8-3-14b. Municipal hotel operators' tax in DuPage
4County. For any municipality located within DuPage County that
5belongs to a not-for-profit organization headquartered in
6DuPage County that is recognized by the Department of Commerce
7and Economic Opportunity as a certified local tourism and
8convention bureau entitled to receive State tourism grant
9funds, not less than 75% of the amounts collected pursuant to
10Section 8-3-14 shall be expended by the municipality for the
11purposes authorized under Section 8-3-14 to promote tourism
12and conventions within that municipality or otherwise to
13attract nonresident overnight visitors to the municipality,
14and the remainder of the amounts collected by a municipality
15within DuPage County pursuant to Section 8-3-14 may be
16expended by the municipality for economic development or
17capital infrastructure.
18 This Section is repealed on January 1, 2025.
19(Source: P.A. 101-204, eff. 8-2-19; 102-699, eff. 4-19-22.)
20 (65 ILCS 5/8-3-14c)
21 (Section scheduled to be repealed on January 1, 2025)
22 Sec. 8-3-14c. Municipal hotel use tax in DuPage County.
23For any municipality located within DuPage County that belongs
24to a not-for-profit organization headquartered in DuPage

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