Bill Text: IL SB3475 | 2023-2024 | 103rd General Assembly | Engrossed

---

Bill Title: Amends the Hotel Operators' Occupation Tax Act. Makes changes concerning the distribution of proceeds under the Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-04-24 - Assigned to Revenue & Finance Committee [SB3475 Detail]

Download: Illinois-2023-SB3475-Engrossed.html

---

SB3475 Engrossed LRB103 35867 HLH 65952 b
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 Section 6 as follows:
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Filing of returns and distribution of revenue.
(a) 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
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

SB3475 Engrossed - 2 - LRB103 35867 HLH 65952 b
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
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

SB3475 Engrossed - 3 - LRB103 35867 HLH 65952 b
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
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

SB3475 Engrossed - 4 - LRB103 35867 HLH 65952 b
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
and interest on such difference.
(b) Until July 1, 2024, the Department shall deposit the
total net revenue realized from the tax imposed under this Act
as provided in this subsection (b). Beginning on July 1, 2024,
the Department shall deposit the total net revenue realized
from the tax imposed under this Act as provided in subsection
(c).

SB3475 Engrossed - 5 - LRB103 35867 HLH 65952 b
There shall be deposited into the Build Illinois Fund in
the State Treasury for each State fiscal year 40% of the amount
of total net revenue from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%: (i) $5,000,000 shall be
deposited into 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
(ii) an amount equal to the then applicable Advance Amount, as
defined in subsection (d), shall be deposited into 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 the then applicable Advance Amount plus any
cumulative deficiencies in such deposits for prior months.
(The deposits of the then applicable Advance Amount 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

SB3475 Engrossed - 6 - LRB103 35867 HLH 65952 b
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 2033, 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 revenue
beginning on August 1, 2011 through June 30, 2023, from the tax
imposed by subsection (a) of Section 3 after all required
deposits into the Illinois Sports Facilities Fund, an amount
equal to 8% of the net revenue realized from this 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, 2011 and through June
30, 2023, 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 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

SB3475 Engrossed - 7 - LRB103 35867 HLH 65952 b
the purposes authorized in Section 605-707 of the Department
of Commerce and Economic Opportunity Law. "Net revenue
realized" means the revenue collected by the State under this
Act less the amount paid out as refunds to taxpayers for
overpayment of liability under this Act.
Beginning on July 1, 2023 and until July 1, 2024, of the
remaining 60% of the amount of total net revenue realized from
the tax imposed under subsection (a) of Section 3, after all
required deposits into the Illinois Sports Facilities Fund:
(1) an amount equal to 8% of the net revenue realized
under this Act for the preceding month shall be deposited
as follows: 82% to the Local Tourism Fund and 18% to the
Chicago Travel Industry Promotion Fund; and
(2) an amount equal to 4.5% of the net revenue
realized under this Act for the preceding month shall be
deposited as follows: 55% to the Chicago Travel Industry
Promotion Fund and 45% to the International Tourism Fund.
After making all these deposits, any remaining net revenue
realized from the tax imposed under subsection (a) of Section
3 shall be deposited into 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.
(c) Beginning on July 1, 2024, the total net revenue
realized from the tax imposed under this Act for the preceding

SB3475 Engrossed - 8 - LRB103 35867 HLH 65952 b
month shall be deposited each month as follows:
(1) 50% shall be deposited into the Build Illinois
Fund; and
(2) the remaining 50% shall be deposited in the
following order of priority:
(A) First:
(i) $5,000,000 shall be deposited into the
Illinois Sports Facilities Fund and credited to
the Subsidy Account each fiscal year by making
monthly deposits in the amount of one-eighth of
$5,000,000 plus cumulative deficiencies in those
deposits for prior months; and
(ii) an amount equal to the then applicable
Advance Amount, as defined in subsection (d),
shall be deposited into the Illinois Sports
Facilities Fund and credited to the Advance
Account each fiscal year by making monthly
deposits in the amount of one-eighth of the then
applicable Advance Amount plus any cumulative
deficiencies in such deposits for prior months;
the deposits of the then applicable Advance Amount
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 Illinois Sports Facilities
Authority or its trustee and shall be repaid into

SB3475 Engrossed - 9 - LRB103 35867 HLH 65952 b
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; if, in any fiscal year,
the full amount of the 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; and
(B) after all required deposits into the Illinois
Sports Facilities Fund under paragraph (A) have been
made each month, the remainder shall be deposited as
follows:
(i) 56% into the Tourism Promotion Fund;
(ii) 23% into the Local Tourism Fund;
(iii) 14% into the Chicago Travel Industry
Promotion Fund; and
(iv) 7% into the International Tourism Fund.
(d) As used in subsections (b) and (c):
"Advance Amount" means, for fiscal year 2002, $22,179,000,
and for subsequent fiscal years through fiscal year 2033,
105.615% of the Advance Amount for the immediately preceding
fiscal year, rounded up to the nearest $1,000.
"Net revenue realized" means the revenue collected by the
State under this Act less the amount paid out as refunds to

SB3475 Engrossed - 10 - LRB103 35867 HLH 65952 b
taxpayers for overpayment of liability under this Act.
(e) 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
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 payroll
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

SB3475 Engrossed - 11 - LRB103 35867 HLH 65952 b
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 who is not required to file an income tax return with
the United States Government.
(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)