100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4757

 

Introduced , by Rep. Ann M. Williams

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 605/605-705  was 20 ILCS 605/46.6a
20 ILCS 665/4a  from Ch. 127, par. 200-24a
35 ILCS 145/6  from Ch. 120, par. 481b.36

    Amends the Illinois Promotion Act. Provides that moneys that are required to be deposited into the Tourism Promotion Fund from the proceeds of the tax imposed under the Hotel Operators' Occupation Tax Act shall be deposited directly into the Tourism Promotion Fund. Provides that, if the available proceeds from the Hotel Operators' Occupation Tax Act after certain other deposits have been made is less than the amount required to be deposited into the Tourism Promotion Fund, then the amount of the deficiency shall be transferred from the General Revenue Fund to the Tourism Promotion Fund in the next calendar month. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Makes changes concerning grants from the Local Tourism Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4757LRB100 18061 HLH 33912 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois is
6amended by changing Section 605-705 as follows:
 
7    (20 ILCS 605/605-705)  (was 20 ILCS 605/46.6a)
8    Sec. 605-705. Grants to local tourism and convention
9bureaus.
10    (a) To establish a grant program for local tourism and
11convention bureaus. The Department will develop and implement a
12program for the use of funds, as authorized under this Act, by
13local tourism and convention bureaus. For the purposes of this
14Act, bureaus eligible to receive funds are those local tourism
15and convention bureaus that are (i) either units of local
16government or incorporated as not-for-profit organizations;
17(ii) in legal existence for a minimum of 2 years before July 1,
182001; (iii) operating with a paid, full-time staff whose sole
19purpose is to promote tourism in the designated service area;
20and (iv) affiliated with one or more municipalities or counties
21that support the bureau with local hotel-motel taxes. After
22July 1, 2001, bureaus requesting certification in order to
23receive funds for the first time must be local tourism and

 

 

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1convention bureaus that are (i) either units of local
2government or incorporated as not-for-profit organizations;
3(ii) in legal existence for a minimum of 2 years before the
4request for certification; (iii) operating with a paid,
5full-time staff whose sole purpose is to promote tourism in the
6designated service area; and (iv) affiliated with multiple
7municipalities or counties that support the bureau with local
8hotel-motel taxes. Each bureau receiving funds under this Act
9will be certified by the Department as the designated recipient
10to serve an area of the State. Notwithstanding the criteria set
11forth in this subsection (a), or any rule adopted under this
12subsection (a), the Director of the Department may provide for
13the award of grant funds to one or more entities if in the
14Department's judgment that action is necessary in order to
15prevent a loss of funding critical to promoting tourism in a
16designated geographic area of the State.
17    (b) To distribute grants to local tourism and convention
18bureaus from appropriations made from the Local Tourism Fund
19for that purpose. Of the amounts appropriated annually to the
20Department for expenditure under this Section prior to July 1,
212011, one-third of those monies shall be used for grants to
22convention and tourism bureaus in cities with a population
23greater than 500,000. The remaining two-thirds of the annual
24appropriation prior to July 1, 2011 shall be used for grants to
25convention and tourism bureaus in the remainder of the State,
26in accordance with a formula based upon the population served.

 

 

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1Of the amounts appropriated annually to the Department for
2expenditure under this Section beginning July 1, 2011, 18% of
3such moneys shall be used for grants to convention and tourism
4bureaus in cities with a population greater than 500,000. Of
5the amounts appropriated annually to the Department for
6expenditure under this Section beginning July 1, 2011, 82% of
7such moneys shall be used for grants to convention bureaus in
8the remainder of the State, in accordance with a formula based
9upon the population served. The Department may reserve up to
1010% of total local tourism funds available for costs of
11administering the program to conduct audits of grants, to
12provide incentive funds to those bureaus that will conduct
13promotional activities designed to further the Department's
14statewide advertising campaign, to fund special statewide
15promotional activities, and to fund promotional activities
16that support an increased use of the State's parks or historic
17sites. The Department shall require that any convention and
18tourism bureau receiving a grant under this Section that
19requires matching funds shall provide matching funds equal to
20no less than 50% of the grant amount. During fiscal year 2013,
21the Department shall reserve $2,000,000 of the available local
22tourism funds for appropriation to the Historic Preservation
23Agency for the operation of the Abraham Lincoln Presidential
24Library and Museum and State historic sites.
25(Source: P.A. 97-617, eff. 10-26-11; 97-732, eff. 6-30-12;
2698-252, eff. 8-9-13.)
 

 

 

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1    Section 10. The Illinois Promotion Act is amended by
2changing Section 4a as follows:
 
3    (20 ILCS 665/4a)  (from Ch. 127, par. 200-24a)
4    Sec. 4a. Funds.
5    (1) All moneys deposited in the Tourism Promotion Fund
6pursuant to this subsection are allocated to the Department for
7utilization, as appropriated, in the performance of its powers
8under Section 4; except that during fiscal year 2013, the
9Department shall reserve $9,800,000 of the total funds
10available for appropriation in the Tourism Promotion Fund for
11appropriation to the Historic Preservation Agency for the
12operation of the Abraham Lincoln Presidential Library and
13Museum and State historic sites.
14    As soon as possible after the first day of each month,
15beginning July 1, 1997 and ending on July 6, 2017 (the
16effective date of Public Act 100-23) this amendatory Act of the
17100th General Assembly, upon certification of the Department of
18Revenue, the Comptroller shall order transferred and the
19Treasurer shall transfer from the General Revenue Fund to the
20Tourism Promotion Fund an amount equal to 13% of the net
21revenue realized from the Hotel Operators' Occupation Tax Act
22plus an amount equal to 13% of the net revenue realized from
23any tax imposed under Section 4.05 of the Chicago World's
24Fair-1992 Authority Act during the preceding month. Beginning

 

 

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1on the effective date of this amendatory Act of the 100th
2General Assembly, 13% of the net revenue realized from the
3Hotel Operators' Occupation Tax Act shall be deposited directly
4into the Tourism Promotion Fund as provided in Section 6 of the
5Hotel Operators' Occupation Tax Act. "Net revenue realized for
6a month" means the revenue collected by the State under that
7Act during the previous month less the amount paid out during
8that same month as refunds to taxpayers for overpayment of
9liability under that Act.
10    (1.1) (Blank).
11    (2) As soon as possible after the first day of each month,
12beginning July 1, 1997 and ending on July 6, 2017 (the
13effective date of Public Act 100-23) this amendatory Act of the
14100th General Assembly, upon certification of the Department of
15Revenue, the Comptroller shall order transferred and the
16Treasurer shall transfer from the General Revenue Fund to the
17Tourism Promotion Fund an amount equal to 8% of the net revenue
18realized from the Hotel Operators' Occupation Tax plus an
19amount equal to 8% of the net revenue realized from any tax
20imposed under Section 4.05 of the Chicago World's Fair-1992
21Authority Act during the preceding month. Beginning on the
22effective date of this amendatory Act of the 100th General
23Assembly, 8% of net revenue realized from the Hotel Operators'
24Occupation Tax Act shall be deposited directly into the Tourism
25Promotion Fund as provided in Section 6 of the Hotel Operators'
26Occupation Tax Act. "Net revenue realized for a month" means

 

 

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1the revenue collected by the State under that Act during the
2previous month less the amount paid out during that same month
3as refunds to taxpayers for overpayment of liability under that
4Act.
5    All monies deposited in the Tourism Promotion Fund under
6this subsection (2) shall be used solely as provided in this
7subsection to advertise and promote tourism throughout
8Illinois. Appropriations of monies deposited in the Tourism
9Promotion Fund pursuant to this subsection (2) shall be used
10solely for advertising to promote tourism, including but not
11limited to advertising production and direct advertisement
12costs, but shall not be used to employ any additional staff,
13finance any individual event, or lease, rent or purchase any
14physical facilities. The Department shall coordinate its
15advertising under this subsection (2) with other public and
16private entities in the State engaged in similar promotion
17activities. Print or electronic media production made pursuant
18to this subsection (2) for advertising promotion shall not
19contain or include the physical appearance of or reference to
20the name or position of any public officer. "Public officer"
21means a person who is elected to office pursuant to statute, or
22who is appointed to an office which is established, and the
23qualifications and duties of which are prescribed, by statute,
24to discharge a public duty for the State or any of its
25political subdivisions.
26    (3) Notwithstanding anything in this Section to the

 

 

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1contrary, amounts transferred from the General Revenue Fund to
2the Tourism Promotion Fund pursuant to this Section shall not
3exceed $26,300,000 in State fiscal year 2012.
4    (4) (Blank). As soon as possible after the first day of
5each month, beginning July 1, 2017, if the amount of revenue
6deposited into the Tourism Promotion Fund under subsection (c)
7of Section 6 of the Hotel Operators' Occupation Tax Act is less
8than 21% of the net revenue realized from the Hotel Operators'
9Occupation Tax during the preceding month, then, upon
10certification of the Department of Revenue, the State
11Comptroller shall direct and the State Treasurer shall transfer
12from the General Revenue Fund to the Tourism Promotion Fund an
13amount equal to the difference between 21% of the net revenue
14realized from the Hotel Operators' Occupation Tax during the
15preceding month and the amount of revenue deposited into the
16Tourism Promotion Fund under subsection (c) of Section 6 of the
17Hotel Operators' Occupation Tax Act.
18(Source: P.A. 100-23, eff. 7-6-17.)
 
19    Section 15. The Hotel Operators' Occupation Tax Act is
20amended by changing Section 6 as follows:
 
21    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
22    Sec. 6. Filing of returns and distribution of proceeds.
23    Except as provided hereinafter in this Section, on or
24before the last day of each calendar month, every person

 

 

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1engaged in the business of renting, leasing or letting rooms in
2a hotel in this State during the preceding calendar month shall
3file a return with the Department, stating:
4        1. The name of the operator;
5        2. His residence address and the address of his
6    principal place of business and the address of the
7    principal place of business (if that is a different
8    address) from which he engages in the business of renting,
9    leasing or letting rooms in a hotel in this State;
10        3. Total amount of rental receipts received by him
11    during the preceding calendar month from renting, leasing
12    or letting rooms during such preceding calendar month;
13        4. Total amount of rental receipts received by him
14    during the preceding calendar month from renting, leasing
15    or letting rooms to permanent residents during such
16    preceding calendar month;
17        5. Total amount of other exclusions from gross rental
18    receipts allowed by this Act;
19        6. Gross rental receipts which were received by him
20    during the preceding calendar month and upon the basis of
21    which the tax is imposed;
22        7. The amount of tax due;
23        8. Such other reasonable information as the Department
24    may require.
25    If the operator's average monthly tax liability to the
26Department does not exceed $200, the Department may authorize

 

 

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1his returns to be filed on a quarter annual basis, with the
2return for January, February and March of a given year being
3due by April 30 of such year; with the return for April, May
4and June of a given year being due by July 31 of such year; with
5the return for July, August and September of a given year being
6due by October 31 of such year, and with the return for
7October, November and December of a given year being due by
8January 31 of the following year.
9    If the operator's average monthly tax liability to the
10Department does not exceed $50, the Department may authorize
11his returns to be filed on an annual basis, with the return for
12a given year being due by January 31 of the following year.
13    Such quarter annual and annual returns, as to form and
14substance, shall be subject to the same requirements as monthly
15returns.
16    Notwithstanding any other provision in this Act concerning
17the time within which an operator may file his return, in the
18case of any operator who ceases to engage in a kind of business
19which makes him responsible for filing returns under this Act,
20such operator shall file a final return under this Act with the
21Department not more than 1 month after discontinuing such
22business.
23    Where the same person has more than 1 business registered
24with the Department under separate registrations under this
25Act, such person shall not file each return that is due as a
26single return covering all such registered businesses, but

 

 

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1shall file separate returns for each such registered business.
2    In his return, the operator shall determine the value of
3any consideration other than money received by him in
4connection with the renting, leasing or letting of rooms in the
5course of his business and he shall include such value in his
6return. Such determination shall be subject to review and
7revision by the Department in the manner hereinafter provided
8for the correction of returns.
9    Where the operator is a corporation, the return filed on
10behalf of such corporation shall be signed by the president,
11vice-president, secretary or treasurer or by the properly
12accredited agent of such corporation.
13    The person filing the return herein provided for shall, at
14the time of filing such return, pay to the Department the
15amount of tax herein imposed. The operator filing the return
16under this Section shall, at the time of filing such return,
17pay to the Department the amount of tax imposed by this Act
18less a discount of 2.1% or $25 per calendar year, whichever is
19greater, which is allowed to reimburse the operator for the
20expenses incurred in keeping records, preparing and filing
21returns, remitting the tax and supplying data to the Department
22on request.
23    There shall be deposited in the Build Illinois Fund in the
24State Treasury for each State fiscal year 40% of the amount of
25total net proceeds from the tax imposed by subsection (a) of
26Section 3. Of the remaining 60%, $5,000,000 shall be deposited

 

 

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1in the Illinois Sports Facilities Fund and credited to the
2Subsidy Account each fiscal year by making monthly deposits in
3the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
4such deposits for prior months, and an additional $8,000,000
5shall be deposited in the Illinois Sports Facilities Fund and
6credited to the Advance Account each fiscal year by making
7monthly deposits in the amount of 1/8 of $8,000,000 plus any
8cumulative deficiencies in such deposits for prior months;
9provided, that for fiscal years ending after June 30, 2001, the
10amount to be so deposited into the Illinois Sports Facilities
11Fund and credited to the Advance Account each fiscal year shall
12be increased from $8,000,000 to the then applicable Advance
13Amount and the required monthly deposits beginning with July
142001 shall be in the amount of 1/8 of the then applicable
15Advance Amount plus any cumulative deficiencies in those
16deposits for prior months. (The deposits of the additional
17$8,000,000 or the then applicable Advance Amount, as
18applicable, during each fiscal year shall be treated as
19advances of funds to the Illinois Sports Facilities Authority
20for its corporate purposes to the extent paid to the Authority
21or its trustee and shall be repaid into the General Revenue
22Fund in the State Treasury by the State Treasurer on behalf of
23the Authority pursuant to Section 19 of the Illinois Sports
24Facilities Authority Act, as amended. If in any fiscal year the
25full amount of the then applicable Advance Amount is not repaid
26into the General Revenue Fund, then the deficiency shall be

 

 

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1paid from the amount in the Local Government Distributive Fund
2that would otherwise be allocated to the City of Chicago under
3the State Revenue Sharing Act.)
4    For purposes of the foregoing paragraph, the term "Advance
5Amount" means, for fiscal year 2002, $22,179,000, and for
6subsequent fiscal years through fiscal year 2032, 105.615% of
7the Advance Amount for the immediately preceding fiscal year,
8rounded up to the nearest $1,000.
9    Of the remaining 60% of the amount of total net proceeds
10prior to August 1, 2011 from the tax imposed by subsection (a)
11of Section 3 after all required deposits in the Illinois Sports
12Facilities Fund, the amount equal to 8% of the net revenue
13realized from this Act plus an amount equal to 8% of the net
14revenue realized from any tax imposed under Section 4.05 of the
15Chicago World's Fair-1992 Authority Act during the preceding
16month shall be deposited in the Local Tourism Fund each month
17for purposes authorized by Section 605-705 of the Department of
18Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
19the remaining 60% of the amount of total net proceeds beginning
20on August 1, 2011 from the tax imposed by subsection (a) of
21Section 3 after all required deposits in the Illinois Sports
22Facilities Fund, an amount equal to 8% of the net revenue
23realized from this Act plus an amount equal to 8% of the net
24revenue realized from any tax imposed under Section 4.05 of the
25Chicago World's Fair-1992 Authority Act during the preceding
26month shall be deposited as follows: 18% of such amount shall

 

 

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1be deposited into the Chicago Travel Industry Promotion Fund
2for the purposes described in subsection (n) of Section 5 of
3the Metropolitan Pier and Exposition Authority Act and the
4remaining 82% of such amount shall be deposited into the Local
5Tourism Fund each month for purposes authorized by Section
6605-705 of the Department of Commerce and Economic Opportunity
7Law. Beginning on August 1, 1999 and ending on July 31, 2011,
8an amount equal to 4.5% of the net revenue realized from the
9Hotel Operators' Occupation Tax Act during the preceding month
10shall be deposited into the International Tourism Fund for the
11purposes authorized in Section 605-707 of the Department of
12Commerce and Economic Opportunity Law. Beginning on August 1,
132011, an amount equal to 4.5% of the net revenue realized from
14this Act during the preceding month shall be deposited as
15follows: 55% of such amount shall be deposited into the Chicago
16Travel Industry Promotion Fund for the purposes described in
17subsection (n) of Section 5 of the Metropolitan Pier and
18Exposition Authority Act and the remaining 45% of such amount
19deposited into the International Tourism Fund for the purposes
20authorized in Section 605-707 of the Department of Commerce and
21Economic Opportunity Law. Beginning on the effective date of
22this amendatory Act of the 100th General Assembly, after all
23required deposits into the Illinois Sports Facilities Fund, the
24Local Tourism Fund, the Chicago Travel Industry Promotion Fund,
25and the International Tourism Fund have been made: (1) 13% of
26the net revenue realized from this Act shall be deposited

 

 

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1directly into the Tourism Promotion Fund to be used as provided
2in paragraph (1) of Section 4a of the Illinois Promotion Act;
3and (2) 8% of the net revenue realized from this Act shall be
4deposited directly into the Tourism Promotion Fund to be used
5as provided in paragraph (2) of Section 4a of the Illinois
6Promotion Act. If, in any month, the amount remaining after all
7required deposits into the Illinois Sports Facilities Fund, the
8Local Tourism Fund, the Chicago Travel Industry Promotion Fund,
9and the International Tourism Fund have been made is less than
1021% of the total proceeds collected under the Act in that
11calendar month, then, as soon as possible after the first day
12of the next month (but in no event later than the fifth day of
13the next month), the Department of Revenue shall certify the
14amount of the deficiency to the State Comptroller and the State
15Treasurer. As soon as possible after receiving the
16certification from the Department of Revenue (but in no event
17later than the tenth day of the month), the State Comptroller
18shall order transferred and the State Treasurer shall transfer
19from the General Revenue Fund to the Tourism Promotion Fund an
20amount equal to the certified deficiency amount. "Net revenue
21realized for a month" means the revenue collected by the State
22under that Act during the previous month less the amount paid
23out during that same month as refunds to taxpayers for
24overpayment of liability under that Act.
25    After making all these deposits, all other proceeds of the
26tax imposed under subsection (a) of Section 3 shall be

 

 

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1deposited in the General Revenue Fund Tourism Promotion Fund in
2the State Treasury. All moneys received by the Department from
3the additional tax imposed under subsection (b) of Section 3
4shall be deposited into the Build Illinois Fund in the State
5Treasury.
6    The Department may, upon separate written notice to a
7taxpayer, require the taxpayer to prepare and file with the
8Department on a form prescribed by the Department within not
9less than 60 days after receipt of the notice an annual
10information return for the tax year specified in the notice.
11Such annual return to the Department shall include a statement
12of gross receipts as shown by the operator's last State income
13tax return. If the total receipts of the business as reported
14in the State income tax return do not agree with the gross
15receipts reported to the Department for the same period, the
16operator shall attach to his annual information return a
17schedule showing a reconciliation of the 2 amounts and the
18reasons for the difference. The operator's annual information
19return to the Department shall also disclose pay roll
20information of the operator's business during the year covered
21by such return and any additional reasonable information which
22the Department deems would be helpful in determining the
23accuracy of the monthly, quarterly or annual tax returns by
24such operator as hereinbefore provided for in this Section.
25    If the annual information return required by this Section
26is not filed when and as required the taxpayer shall be liable

 

 

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1for a penalty in an amount determined in accordance with
2Section 3-4 of the Uniform Penalty and Interest Act until such
3return is filed as required, the penalty to be assessed and
4collected in the same manner as any other penalty provided for
5in this Act.
6    The chief executive officer, proprietor, owner or highest
7ranking manager shall sign the annual return to certify the
8accuracy of the information contained therein. Any person who
9willfully signs the annual return containing false or
10inaccurate information shall be guilty of perjury and punished
11accordingly. The annual return form prescribed by the
12Department shall include a warning that the person signing the
13return may be liable for perjury.
14    The foregoing portion of this Section concerning the filing
15of an annual information return shall not apply to an operator
16who is not required to file an income tax return with the
17United States Government.
18(Source: P.A. 100-23, eff. 7-6-17.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.