Bill Text: IL SB1246 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Hotel Operators' Occupation Tax Act. Provides that the tax 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 of Revenue if the renting, leasing, or letting of the rooms is in furtherance of the purposes for which the exempt organization is organized. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2023-03-21 - Added as Co-Sponsor Sen. Dale Fowler [SB1246 Detail]

Download: Illinois-2023-SB1246-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1246

Introduced 2/2/2023, by Sen. Donald P. DeWitte

SYNOPSIS AS INTRODUCED:
35 ILCS 145/3 from Ch. 120, par. 481b.33

Amends the Hotel Operators' Occupation Tax Act. Provides that the tax 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 of Revenue if the renting, leasing, or letting of the rooms is in furtherance of the purposes for which the exempt organization is organized. Effective immediately.
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A BILL FOR

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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Hotel Operators' Occupation Tax Act is
5amended by changing Section 3 as follows:
6 (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
7 Sec. 3. Rate; exemptions.
8 (a) A tax is imposed upon persons engaged in the business
9of renting, leasing or letting rooms in a hotel at the rate of
105% of 94% of the gross rental receipts from such renting,
11leasing or letting, excluding, however, from gross rental
12receipts, the proceeds of such renting, leasing or letting to
13permanent residents of that hotel and proceeds from the tax
14imposed under subsection (c) of Section 13 of the Metropolitan
15Pier and Exposition Authority Act.
16 (b) There shall be imposed an additional tax upon persons
17engaged in the business of renting, leasing or letting rooms
18in a hotel at the rate of 1% of 94% of the gross rental
19receipts from such renting, leasing or letting, excluding,
20however, from gross rental receipts, the proceeds of such
21renting, leasing or letting to permanent residents of that
22hotel and proceeds from the tax imposed under subsection (c)
23of Section 13 of the Metropolitan Pier and Exposition

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1Authority Act.
2 (c) No funds received pursuant to this Act shall be used to
3advertise for or otherwise promote new competition in the
4hotel business.
5 (d) However, such tax is not imposed upon the privilege of
6engaging in any business in Interstate Commerce or otherwise,
7which business may not, under the Constitution and Statutes of
8the United States, be made the subject of taxation by this
9State. In addition, the tax is not imposed upon gross rental
10receipts for which the hotel operator is prohibited from
11obtaining reimbursement for the tax from the customer by
12reason of a federal treaty.
13 (d-5) On and after July 1, 2017, the tax imposed by this
14Act shall not apply to gross rental receipts received by an
15entity that is organized and operated exclusively for
16religious purposes and possesses an active Exemption
17Identification Number issued by the Department pursuant to the
18Retailers' Occupation Tax Act when acting as a hotel operator
19renting, leasing, or letting rooms:
20 (1) in furtherance of the purposes for which it is
21 organized; or
22 (2) to entities that (i) are organized and operated
23 exclusively for religious purposes, (ii) possess an active
24 Exemption Identification Number issued by the Department
25 pursuant to the Retailers' Occupation Tax Act, and (iii)
26 rent the rooms in furtherance of the purposes for which

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1 they are organized.
2 No gross rental receipts are exempt under paragraph (2) of
3this subsection (d-5) unless the hotel operator obtains the
4active Exemption Identification Number from the exclusively
5religious entity to whom it is renting and maintains that
6number in its books and records. Gross rental receipts from
7all rentals other than those described in items (1) or (2) of
8this subsection (d-5) are subject to the tax imposed by this
9Act unless otherwise exempt under this Act.
10 This subsection (d-5) is exempt from the sunset provisions
11of Section 3-5 of this Act.
12 (d-10) On and after July 1, 2023, the tax imposed by this
13Act shall not apply to gross rental receipts received from the
14renting, leasing, or letting of rooms to an entity that is
15organized and operated exclusively by an organization
16chartered by the United States Congress for the purpose of
17providing disaster relief and that possesses an active
18Exemption Identification Number issued by the Department
19pursuant to the Retailers' Occupation Tax Act if the renting,
20leasing, or letting of the rooms is in furtherance of the
21purposes for which the exempt organization is organized. This
22subsection (d-10) is exempt from the sunset provisions of
23Section 3-5 of this Act.
24 (e) Persons subject to the tax imposed by this Act may
25reimburse themselves for their tax liability under this Act by
26separately stating such tax as an additional charge, which

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1charge may be stated in combination, in a single amount, with
2any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
3Illinois Municipal Code, and Section 25.05-10 of "An Act to
4revise the law in relation to counties".
5 (f) If any hotel operator collects an amount (however
6designated) which purports to reimburse such operator for
7hotel operators' occupation tax liability measured by receipts
8which are not subject to hotel operators' occupation tax, or
9if any hotel operator, in collecting an amount (however
10designated) which purports to reimburse such operator for
11hotel operators' occupation tax liability measured by receipts
12which are subject to tax under this Act, collects more from the
13customer than the operators' hotel operators' occupation tax
14liability in the transaction is, the customer shall have a
15legal right to claim a refund of such amount from such
16operator. However, if such amount is not refunded to the
17customer for any reason, the hotel operator is liable to pay
18such amount to the Department.
19(Source: P.A. 100-213, eff. 8-18-17.)
20 Section 99. Effective date. This Act takes effect upon
21becoming law.
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