Bill Text: IL SB1217 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Amends the Illinois Municipal Code. Provides that not less than 75% of the amounts collected by a municipality within DuPage County pursuant to the municipal hotel operators' occupation tax and municipal hotel use tax shall be used to promote tourism within that municipality. Requires that the municipality that belong to a not-for-profit organization headquartered in DuPage County that is recognized by the Department of Commerce and Economic Opportunity as a certified local tourism and convention bureau entitled to receive State tourism grant funds. Provides that the remainder of the amounts collected may be used by the municipality for economic development or capital infrastructure. Repeals the provisions on January 1, 2021. Effectively immediately.

Spectrum: Moderate Partisan Bill (Democrat 8-2)

Status: (Enrolled) 2019-06-19 - Sent to the Governor [SB1217 Detail]

Download: Illinois-2019-SB1217-Enrolled.html



SB1217 EnrolledLRB101 07963 AWJ 53019 b
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 8-3-14 and 8-3-14a and by adding Sections
68-3-14b and 8-3-14c as follows:
7 (65 ILCS 5/8-3-14) (from Ch. 24, par. 8-3-14)
8 Sec. 8-3-14. Municipal hotel operators' occupation tax.
9The corporate authorities of any municipality may impose a tax
10upon all persons engaged in such municipality in the business
11of renting, leasing or letting rooms in a hotel, as defined in
12"The Hotel Operators' Occupation Tax Act," at a rate not to
13exceed 6% in the City of East Peoria and in the Village of
14Morton and 5% in all other municipalities of the gross rental
15receipts from such renting, leasing or letting, excluding,
16however, from gross rental receipts, the proceeds of such
17renting, leasing or letting to permanent residents of that
18hotel and proceeds from the tax imposed under subsection (c) of
19Section 13 of the Metropolitan Pier and Exposition Authority
20Act, and may provide for the administration and enforcement of
21the tax, and for the collection thereof from the persons
22subject to the tax, as the corporate authorities determine to
23be necessary or practicable for the effective administration of

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1the tax. The municipality may not impose a tax under this
2Section if it imposes a tax under Section 8-3-14a.
3 Persons subject to any tax imposed pursuant to authority
4granted by this Section may reimburse themselves for their tax
5liability for such tax by separately stating such tax as an
6additional charge, which charge may be stated in combination,
7in a single amount, with State tax imposed under "The Hotel
8Operators' Occupation Tax Act".
9 Nothing in this Section shall be construed to authorize a
10municipality to impose a tax upon the privilege of engaging in
11any business which under the constitution of the United States
12may not be made the subject of taxation by this State.
13 Except as otherwise provided in this Division, the The
14amounts collected by any municipality pursuant to this Section
15shall be expended by the municipality solely to promote tourism
16and conventions within that municipality or otherwise to
17attract nonresident overnight visitors to the municipality.
18 No funds received pursuant to this Section shall be used to
19advertise for or otherwise promote new competition in the hotel
20business.
21(Source: P.A. 95-967, eff. 9-23-08; 96-238, eff. 8-11-09.)
22 (65 ILCS 5/8-3-14a)
23 Sec. 8-3-14a. Municipal hotel use tax.
24 (a) The corporate authorities of any municipality may
25impose a tax upon the privilege of renting or leasing rooms in

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1a hotel within the municipality at a rate not to exceed 5% of
2the rental or lease payment. The corporate authorities may
3provide for the administration and enforcement of the tax and
4for the collection thereof from the persons subject to the tax,
5as the corporate authorities determine to be necessary or
6practical for the effective administration of the tax.
7 (b) Each hotel in the municipality shall collect the tax
8from the person making the rental or lease payment at the time
9that the payment is tendered to the hotel. The hotel shall, as
10trustee, remit the tax to the municipality.
11 (c) The tax authorized under this Section does not apply to
12any rental or lease payment by a permanent resident of that
13hotel or to any payment made to any hotel that is subject to
14the tax imposed under subsection (c) of Section 13 of the
15Metropolitan Pier and Exposition Authority Act. A municipality
16may not impose a tax under this Section if it imposes a tax
17under Section 8-3-14. Nothing in this Section may be construed
18to authorize a municipality to impose a tax upon the privilege
19of engaging in any business that under the Constitution of the
20United States may not be made the subject of taxation by this
21State.
22 (d) Except as otherwise provided in this Division, the The
23moneys collected by a municipality under this Section may be
24expended solely to promote tourism and conventions within that
25municipality or otherwise to attract nonresident overnight
26visitors to the municipality. No moneys received under this

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1Section may be used to advertise for or otherwise promote new
2competition in the hotel business.
3 (e) As used in this Section, "hotel" has the meaning set
4forth in Section 2 of the Hotel Operators' Occupation Tax Act.
5(Source: P.A. 96-238, eff. 8-11-09.)
6 (65 ILCS 5/8-3-14b new)
7 Sec. 8-3-14b. Municipal hotel operators' tax in DuPage
8County. For any municipality located within DuPage County that
9belongs to a not-for-profit organization headquartered in
10DuPage County that is recognized by the Department of Commerce
11and Economic Opportunity as a certified local tourism and
12convention bureau entitled to receive State tourism grant
13funds, not less than 75% of the amounts collected pursuant to
14Section 8-3-14 shall be expended by the municipality to promote
15tourism and conventions within that municipality or otherwise
16to attract nonresident overnight visitors to the municipality,
17and the remainder of the amounts collected by a municipality
18within DuPage County pursuant to Section 8-3-14 may be expended
19by the municipality for economic development or capital
20infrastructure.
21 This Section is repealed on January 1, 2023.
22 (65 ILCS 5/8-3-14c new)
23 Sec. 8-3-14c. Municipal hotel use tax in DuPage County. For
24any municipality located within DuPage County that belongs to a

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1not-for-profit organization headquartered in DuPage County
2that is recognized by the Department of Commerce and Economic
3Opportunity as a certified local tourism and convention bureau
4entitled to receive State tourism grant funds, not less than
575% of the amounts collected pursuant to Section 8-3-14a shall
6be expended by the municipality to promote tourism and
7conventions within that municipality or otherwise to attract
8nonresident overnight visitors to the municipality, and the
9remainder of the amounts collected by a municipality within
10DuPage County pursuant to Section 8-3-14a may be expended by
11the municipality for economic development or capital
12infrastructure.
13 This Section is repealed on January 1, 2023.
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