101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2780

 

Introduced , by Rep. Andrew S. Chesney

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1030  from Ch. 34, par. 5-1030

    Amends the Counties Code. Provides that a county board that imposes a non-home rule hotel tax may, by ordinance, impose up to a 1% additional hotel tax in the county, except not in municipalities that already impose a hotel tax. Prohibits taxes from being imposed on gross rental receipts of permanent residents of a hotel, motel, or resort. Provides that the additional hotel tax shall be used by the county for the costs associated with providing infrastructure, police protection, and emergency services in support of tourism and conventions within the county. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2780LRB101 08332 AWJ 53594 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 Counties Code is amended by changing Section
55-1030 as follows:
 
6    (55 ILCS 5/5-1030)  (from Ch. 34, par. 5-1030)
7    Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
8    (a) The corporate authorities of any county may by
9ordinance impose a tax upon all persons engaged in such county
10in the business of renting, leasing or letting rooms in a hotel
11which is not located within a city, village, or incorporated
12town that imposes a tax under Section 8-3-14 of the Illinois
13Municipal Code, as defined in "The Hotel Operators' Occupation
14Tax Act", at a rate not to exceed 5% 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 may provide for the administration and enforcement
19of the tax, and for the collection thereof from the persons
20subject to the tax, as the corporate authorities determine to
21be necessary or practicable for the effective administration of
22the tax.
23    (a-5) The corporate authorities of a non-home rule county

 

 

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1imposing a tax under subsection (a) may, by ordinance, impose
2up to a 1% additional tax upon the gross rental receipts of all
3persons engaged in the county in the business of renting,
4leasing, or letting rooms in a hotel, motel, or resort, which
5is not located within a municipality that imposes a tax under
6Section 8-3-14 of the Illinois Municipal Code, except that a
7tax under this subsection shall not be imposed on gross rental
8receipts of permanent residents of a hotel, motel, or resort.
9The proceeds of the additional tax shall be used by the county
10for the costs associated with providing infrastructure, police
11protection, and emergency services in support of tourism and
12conventions within the county.
13    (b) With the consent of municipalities representing at
14least 67% of the population of Winnebago County, as determined
15by the 2010 federal decennial census and as expressed by
16resolution of the corporate authorities of those
17municipalities, the county board of Winnebago County may, by
18ordinance, impose a tax upon all persons engaged in the county
19in the business of renting, leasing, or letting rooms in a
20hotel that imposes a tax under Section 8-3-14 of the Illinois
21Municipal Code, as defined in "The Hotel Operators' Occupation
22Tax Act", at a rate not to exceed 2% of the gross rental
23receipts from renting, leasing, or letting, excluding,
24however, from gross rental receipts, the proceeds of the
25renting, leasing, or letting to permanent residents of that
26hotel, and may provide for the administration and enforcement

 

 

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1of the tax, and for the collection thereof from the persons
2subject to the tax, as the county board determines to be
3necessary or practicable for the effective administration of
4the tax. The tax shall be instituted on a county-wide basis and
5shall be in addition to any tax imposed by this or any other
6provision of law. The revenue generated under this subsection
7shall be accounted for and segregated from all other funds of
8the county and shall be utilized solely for either: (1)
9encouraging, supporting, marketing, constructing, or
10operating, either directly by the county or through other
11taxing bodies within the county, sports, arts, or other
12entertainment or tourism facilities or programs for the purpose
13of promoting tourism, competitiveness, job growth, and for the
14general health and well-being of the citizens of the county; or
15(2) payment towards debt services on bonds issued for the
16purposes set forth in this subsection.
17    (c) A Tourism Facility Board shall be established,
18comprised of a representative from the county and from each
19municipality that has approved the imposition of the tax under
20subsection (b) of this Section.
21        (1) A Board member's vote is weighted based on the
22    municipality's population relative to the population of
23    the county, with the county representing the population
24    within unincorporated areas of the county. Representatives
25    from the Rockford Park District and Rockford Area
26    Convention and Visitors Bureau shall serve as ex-officio

 

 

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1    members with no voting rights.
2        (2) The Board must meet not less frequently than once
3    per year to direct the use of revenues collected from the
4    tax imposed under subsection (b) of this Section that are
5    not already directed for use pursuant to an
6    intergovernmental agreement between the county and another
7    entity represented on the Board, including the ex-officio
8    members, and for any other reason the Board deems
9    necessary. Affirmative actions of the Board shall require a
10    weighted vote of Board members representing not less than
11    67% of the population of the county.
12        (3) The Board shall not be a separate unit of local
13    government, shall have no paid staff, and members of the
14    Board shall receive no compensation or reimbursement of
15    expenses from proceeds of the tax imposed under subsection
16    (b) of this Section.
17    (d) Persons subject to any tax imposed pursuant to
18authority granted by this Section may reimburse themselves for
19their tax liability for such tax by separately stating such tax
20as an additional charge, which charge may be stated in
21combination, in a single amount, with State tax imposed under
22"The Hotel Operators' Occupation Tax Act".
23    Nothing in this Section shall be construed to authorize a
24county to impose a tax upon the privilege of engaging in any
25business which under the Constitution of the United States may
26not be made the subject of taxation by this State.

 

 

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1    An ordinance or resolution imposing a tax hereunder or
2effecting a change in the rate thereof shall be effective on
3the first day of the calendar month next following its passage
4and required publication.
5    The amounts collected by any county pursuant to this
6Section shall be expended to promote tourism; conventions;
7expositions; theatrical, sports and cultural activities within
8that county or otherwise to attract nonresident overnight
9visitors to the county.
10    Any county may agree with any unit of local government,
11including any authority defined as a metropolitan exposition,
12auditorium and office building authority, fair and exposition
13authority, exposition and auditorium authority, or civic
14center authority created pursuant to provisions of Illinois law
15and the territory of which unit of local government or
16authority is co-extensive with or wholly within such county, to
17impose and collect for a period not to exceed 40 years, any
18portion or all of the tax authorized pursuant to this Section
19and to transmit such tax so collected to such unit of local
20government or authority. The amount so paid shall be expended
21by any such unit of local government or authority for the
22purposes for which such tax is authorized. Any such agreement
23must be authorized by resolution or ordinance, as the case may
24be, of such county and unit of local government or authority,
25and such agreement may provide for the irrevocable imposition
26and collection of said tax at such rate, or amount as limited

 

 

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1by a given rate, as may be agreed upon for the full period of
2time set forth in such agreement; and such agreement may
3further provide for any other terms as deemed necessary or
4advisable by such county and such unit of local government or
5authority. Any such agreement shall be binding and enforceable
6by either party to such agreement. Such agreement entered into
7pursuant to this Section shall not in any event constitute an
8indebtedness of such county subject to any limitation imposed
9by statute or otherwise.
10(Source: P.A. 98-313, eff. 8-12-13.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.