93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2419

 

Introduced 2/3/2004, by Christine Radogno

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-3-14   from Ch. 24, par. 8-3-14

    Amends the Illinois Municipal Code. Provides that the amounts collected by any municipality from the tax on hotel rooms authorized to be imposed in a municipality under the Code shall be expended by the municipality as follows: (1) 20% shall be allocated to the local convention and tourism bureau; (2) 40% shall be allocated to the municipality for unrestricted use; (3) 10% shall be allocated to hotels in the municipality to be used for marketing purposes, but that, if the convention and visitors bureau of a municipality undertakes the marketing for hotels in that municipality, then this 10% shall instead be allocated to the convention and visitors bureau for marketing purposes; and (4) 30% shall be allocated to the municipality, but its use shall be restricted solely to promote tourism and conventions within that municipality or otherwise to attract nonresident overnight visitors to the municipality (now the amounts collected may be used solely to promote tourism and conventions within that municipality or otherwise to attract nonresident overnight visitors to the municipality). Effective immediately.


LRB093 15907 SJM 41525 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2419 LRB093 15907 SJM 41525 b

1     AN ACT concerning taxes.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Municipal Code is amended by
5 changing Section 8-3-14 as follows:
 
6     (65 ILCS 5/8-3-14)  (from Ch. 24, par. 8-3-14)
7     Sec. 8-3-14. The corporate authorities of any municipality
8 may impose a tax upon all persons engaged in such municipality
9 in the business of renting, leasing or letting rooms in a
10 hotel, as defined in "The Hotel Operators' Occupation Tax Act,"
11 at a rate not to exceed 5% of the gross rental receipts from
12 such renting, leasing or letting, excluding, however, from
13 gross rental receipts, the proceeds of such renting, leasing or
14 letting to permanent residents of that hotel and proceeds from
15 the tax imposed under subsection (c) of Section 13 of the
16 Metropolitan Pier and Exposition Authority Act, and may provide
17 for the administration and enforcement of the tax, and for the
18 collection thereof from the persons subject to the tax, as the
19 corporate authorities determine to be necessary or practicable
20 for the effective administration of the tax.
21     Persons subject to any tax imposed pursuant to authority
22 granted by this Section may reimburse themselves for their tax
23 liability for such tax by separately stating such tax as an
24 additional charge, which charge may be stated in combination,
25 in a single amount, with State tax imposed under "The Hotel
26 Operators' Occupation Tax Act".
27     Nothing in this Section shall be construed to authorize a
28 municipality to impose a tax upon the privilege of engaging in
29 any business which under the constitution of the United States
30 may not be made the subject of taxation by this State.
31     The amounts collected by any municipality pursuant to this
32 Section shall be expended by the municipality as follows:

 

 

SB2419 - 2 - LRB093 15907 SJM 41525 b

1         (1) Twenty percent shall be allocated to the local
2     convention and tourism bureau.
3         (2) Forty percent shall be allocated to the
4     municipality for unrestricted use.
5         (3) Ten percent shall be allocated to hotels in the
6     municipality, based on the percentage of revenue generated
7     by each hotel in relation to revenue generated by the other
8     hotels in the municipality, to be used for marketing
9     purposes. If the convention and visitors bureau of a
10     municipality undertakes the marketing for hotels in that
11     municipality, then this 10% shall instead be allocated to
12     the convention and visitors bureau for marketing purposes.
13         (4) Thirty percent shall be allocated to the
14     municipality, but its use shall be restricted solely to
15     promote tourism and conventions within that municipality
16     or otherwise to attract nonresident overnight visitors to
17     the municipality, which may include offering rebates to
18     hotels.
19     No funds received pursuant to this Section shall be used to
20 advertise for or otherwise promote new competition in the hotel
21 business.
22 (Source: P.A. 87-733.)
 
23     Section 99. Effective date. This Act takes effect upon
24 becoming law.