101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2773

 

Introduced , by Rep. Debbie Meyers-Martin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 145/3  from Ch. 120, par. 481b.33
55 ILCS 5/5-1030  from Ch. 34, par. 5-1030
65 ILCS 5/8-3-14  from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a
65 ILCS 5/11-74.3-6
70 ILCS 210/13  from Ch. 85, par. 1233
70 ILCS 3205/19  from Ch. 85, par. 6019
70 ILCS 3210/105

    Amends the Hotel Operators' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Metropolitan Pier and Exposition Authority Act, the Illinois Sports Facilities Authority Act, and the Downstate Illinois Sports Facilities Authority Act. Provides that no tax is imposed under the Acts on the renting, leasing, or letting of hotel rooms to the American Red Cross for the provision or coordination of disaster relief services. Effective immediately.


LRB101 04939 TAE 49948 b

 

 

A BILL FOR

 

HB2773LRB101 04939 TAE 49948 b

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 in
18a hotel at the rate of 1% of 94% of the gross rental receipts
19from such renting, leasing or letting, excluding, however, from
20gross rental receipts, the proceeds of such renting, leasing or
21letting to permanent residents of that hotel and proceeds from
22the tax imposed under subsection (c) of Section 13 of the
23Metropolitan Pier and Exposition Authority Act.

 

 

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

 

 

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1    No gross rental receipts are exempt under paragraph (2) of
2this subsection (d-5) unless the hotel operator obtains the
3active Exemption Identification Number from the exclusively
4religious entity to whom it is renting and maintains that
5number in its books and records. Gross rental receipts from all
6rentals other than those described in items (1) or (2) of this
7subsection (d-5) are subject to the tax imposed by this Act
8unless otherwise exempt under this Act.
9    This subsection (d-5) is exempt from the sunset provisions
10of Section 3-5 of this Act.
11    (e) Persons subject to the tax imposed by this Act may
12reimburse themselves for their tax liability under this Act by
13separately stating such tax as an additional charge, which
14charge may be stated in combination, in a single amount, with
15any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
16Illinois Municipal Code, and Section 25.05-10 of "An Act to
17revise the law in relation to counties".
18    (f) If any hotel operator collects an amount (however
19designated) which purports to reimburse such operator for hotel
20operators' occupation tax liability measured by receipts which
21are not subject to hotel operators' occupation tax, or if any
22hotel operator, in collecting an amount (however designated)
23which purports to reimburse such operator for hotel operators'
24occupation tax liability measured by receipts which are subject
25to tax under this Act, collects more from the customer than the
26operators' hotel operators' occupation tax liability in the

 

 

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1transaction is, the customer shall have a legal right to claim
2a refund of such amount from such operator. However, if such
3amount is not refunded to the customer for any reason, the
4hotel operator is liable to pay such amount to the Department.
5    (g) Notwithstanding any other provision of law, the tax is
6not imposed on the renting, leasing, or letting of hotel rooms
7to the American Red Cross for the provision or coordination of
8disaster relief services. The exemption under this subsection
9for the renting, leasing, or letting of hotel rooms to the
10American Red Cross shall not apply except during the provision
11or coordination of disaster relief services.
12(Source: P.A. 100-213, eff. 8-18-17.)
 
13    Section 10. The Counties Code is amended by changing
14Section 5-1030 as follows:
 
15    (55 ILCS 5/5-1030)  (from Ch. 34, par. 5-1030)
16    Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
17    (a) The corporate authorities of any county may by
18ordinance impose a tax upon all persons engaged in such county
19in the business of renting, leasing or letting rooms in a hotel
20which is not located within a city, village, or incorporated
21town that imposes a tax under Section 8-3-14 of the Illinois
22Municipal Code, as defined in "The Hotel Operators' Occupation
23Tax Act", at a rate not to exceed 5% of the gross rental
24receipts from such renting, leasing or letting, excluding,

 

 

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1however, from gross rental receipts, the proceeds of such
2renting, leasing or letting to permanent residents of that
3hotel, and may provide for the administration and enforcement
4of the tax, and for the collection thereof from the persons
5subject to the tax, as the corporate authorities determine to
6be necessary or practicable for the effective administration of
7the tax.
8    (b) With the consent of municipalities representing at
9least 67% of the population of Winnebago County, as determined
10by the 2010 federal decennial census and as expressed by
11resolution of the corporate authorities of those
12municipalities, the county board of Winnebago County may, by
13ordinance, impose a tax upon all persons engaged in the county
14in the business of renting, leasing, or letting rooms in a
15hotel that imposes a tax under Section 8-3-14 of the Illinois
16Municipal Code, as defined in "The Hotel Operators' Occupation
17Tax Act", at a rate not to exceed 2% of the gross rental
18receipts from renting, leasing, or letting, excluding,
19however, from gross rental receipts, the proceeds of the
20renting, leasing, or letting to permanent residents of that
21hotel, and may provide for the administration and enforcement
22of the tax, and for the collection thereof from the persons
23subject to the tax, as the county board determines to be
24necessary or practicable for the effective administration of
25the tax. The tax shall be instituted on a county-wide basis and
26shall be in addition to any tax imposed by this or any other

 

 

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1provision of law. The revenue generated under this subsection
2shall be accounted for and segregated from all other funds of
3the county and shall be utilized solely for either: (1)
4encouraging, supporting, marketing, constructing, or
5operating, either directly by the county or through other
6taxing bodies within the county, sports, arts, or other
7entertainment or tourism facilities or programs for the purpose
8of promoting tourism, competitiveness, job growth, and for the
9general health and well-being of the citizens of the county; or
10(2) payment towards debt services on bonds issued for the
11purposes set forth in this subsection.
12    (c) A Tourism Facility Board shall be established,
13comprised of a representative from the county and from each
14municipality that has approved the imposition of the tax under
15subsection (b) of this Section.
16        (1) A Board member's vote is weighted based on the
17    municipality's population relative to the population of
18    the county, with the county representing the population
19    within unincorporated areas of the county. Representatives
20    from the Rockford Park District and Rockford Area
21    Convention and Visitors Bureau shall serve as ex-officio
22    members with no voting rights.
23        (2) The Board must meet not less frequently than once
24    per year to direct the use of revenues collected from the
25    tax imposed under subsection (b) of this Section that are
26    not already directed for use pursuant to an

 

 

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1    intergovernmental agreement between the county and another
2    entity represented on the Board, including the ex-officio
3    members, and for any other reason the Board deems
4    necessary. Affirmative actions of the Board shall require a
5    weighted vote of Board members representing not less than
6    67% of the population of the county.
7        (3) The Board shall not be a separate unit of local
8    government, shall have no paid staff, and members of the
9    Board shall receive no compensation or reimbursement of
10    expenses from proceeds of the tax imposed under subsection
11    (b) of this Section.
12    (d) Persons subject to any tax imposed pursuant to
13authority granted by this Section may reimburse themselves for
14their tax liability for such tax by separately stating such tax
15as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax imposed under
17"The Hotel Operators' Occupation Tax Act".
18    Nothing in this Section shall be construed to authorize a
19county to impose a tax upon the privilege of engaging in any
20business which under the Constitution of the United States may
21not be made the subject of taxation by this State.
22    An ordinance or resolution imposing a tax hereunder or
23effecting a change in the rate thereof shall be effective on
24the first day of the calendar month next following its passage
25and required publication.
26    The amounts collected by any county pursuant to this

 

 

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1Section shall be expended to promote tourism; conventions;
2expositions; theatrical, sports and cultural activities within
3that county or otherwise to attract nonresident overnight
4visitors to the county.
5    Any county may agree with any unit of local government,
6including any authority defined as a metropolitan exposition,
7auditorium and office building authority, fair and exposition
8authority, exposition and auditorium authority, or civic
9center authority created pursuant to provisions of Illinois law
10and the territory of which unit of local government or
11authority is co-extensive with or wholly within such county, to
12impose and collect for a period not to exceed 40 years, any
13portion or all of the tax authorized pursuant to this Section
14and to transmit such tax so collected to such unit of local
15government or authority. The amount so paid shall be expended
16by any such unit of local government or authority for the
17purposes for which such tax is authorized. Any such agreement
18must be authorized by resolution or ordinance, as the case may
19be, of such county and unit of local government or authority,
20and such agreement may provide for the irrevocable imposition
21and collection of said tax at such rate, or amount as limited
22by a given rate, as may be agreed upon for the full period of
23time set forth in such agreement; and such agreement may
24further provide for any other terms as deemed necessary or
25advisable by such county and such unit of local government or
26authority. Any such agreement shall be binding and enforceable

 

 

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1by either party to such agreement. Such agreement entered into
2pursuant to this Section shall not in any event constitute an
3indebtedness of such county subject to any limitation imposed
4by statute or otherwise.
5    Notwithstanding any other provision of law, the tax is not
6imposed on the renting, leasing, or letting of hotel rooms to
7the American Red Cross for the provision or coordination of
8disaster relief services. This exemption for the renting,
9leasing, or letting of hotel rooms to the American Red Cross
10shall not apply except during the provision or coordination of
11disaster relief services.
12(Source: P.A. 98-313, eff. 8-12-13.)
 
13    Section 15. The Illinois Municipal Code is amended by
14changing Sections 8-3-14, 8-3-14a, and 11-74.3-6 as follows:
 
15    (65 ILCS 5/8-3-14)  (from Ch. 24, par. 8-3-14)
16    Sec. 8-3-14. Municipal hotel operators' occupation tax.
17The corporate authorities of any municipality may impose a tax
18upon all persons engaged in such municipality in the business
19of renting, leasing or letting rooms in a hotel, as defined in
20"The Hotel Operators' Occupation Tax Act," at a rate not to
21exceed 6% in the City of East Peoria and in the Village of
22Morton and 5% in all other municipalities of the gross rental
23receipts from such renting, leasing or letting, excluding,
24however, from gross rental receipts, the proceeds of such

 

 

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1renting, leasing or letting to permanent residents of that
2hotel and proceeds from the tax imposed under subsection (c) of
3Section 13 of the Metropolitan Pier and Exposition Authority
4Act, and may provide for the administration and enforcement of
5the tax, and for the collection thereof from the persons
6subject to the tax, as the corporate authorities determine to
7be necessary or practicable for the effective administration of
8the tax. The municipality may not impose a tax under this
9Section if it imposes a tax under Section 8-3-14a.
10    Persons subject to any tax imposed pursuant to authority
11granted by this Section may reimburse themselves for their tax
12liability for such tax by separately stating such tax as an
13additional charge, which charge may be stated in combination,
14in a single amount, with State tax imposed under "The Hotel
15Operators' Occupation Tax Act".
16    Nothing in this Section shall be construed to authorize a
17municipality to impose a tax upon the privilege of engaging in
18any business which under the constitution of the United States
19may not be made the subject of taxation by this State.
20    The amounts collected by any municipality pursuant to this
21Section shall be expended by the municipality solely to promote
22tourism and conventions within that municipality or otherwise
23to attract nonresident overnight visitors to the municipality.
24    No funds received pursuant to this Section shall be used to
25advertise for or otherwise promote new competition in the hotel
26business.

 

 

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1    Notwithstanding any other provision of law, the tax is not
2imposed on the renting, leasing, or letting of hotel rooms to
3the American Red Cross for the provision or coordination of
4disaster relief services. This exemption for the renting,
5leasing, or letting of hotel rooms to the American Red Cross
6shall not apply except during the provision or coordination of
7disaster relief services.
8(Source: P.A. 95-967, eff. 9-23-08; 96-238, eff. 8-11-09.)
 
9    (65 ILCS 5/8-3-14a)
10    Sec. 8-3-14a. Municipal hotel use tax.
11    (a) The corporate authorities of any municipality may
12impose a tax upon the privilege of renting or leasing rooms in
13a hotel within the municipality at a rate not to exceed 5% of
14the rental or lease payment. The corporate authorities may
15provide for the administration and enforcement of the tax and
16for the collection thereof from the persons subject to the tax,
17as the corporate authorities determine to be necessary or
18practical for the effective administration of the tax.
19    (b) Each hotel in the municipality shall collect the tax
20from the person making the rental or lease payment at the time
21that the payment is tendered to the hotel. The hotel shall, as
22trustee, remit the tax to the municipality.
23    (c) The tax authorized under this Section does not apply to
24any rental or lease payment by a permanent resident of that
25hotel or to any payment made to any hotel that is subject to

 

 

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1the tax imposed under subsection (c) of Section 13 of the
2Metropolitan Pier and Exposition Authority Act. A municipality
3may not impose a tax under this Section if it imposes a tax
4under Section 8-3-14. Nothing in this Section may be construed
5to authorize a municipality to impose a tax upon the privilege
6of engaging in any business that under the Constitution of the
7United States may not be made the subject of taxation by this
8State.
9    (c-5) Notwithstanding any other provision of law, the tax
10is not imposed on the renting or leasing of hotel rooms to the
11American Red Cross for the provision or coordination of
12disaster relief services. This exemption for the renting,
13leasing, or letting of hotel rooms to the American Red Cross
14shall not apply except during the provision or coordination of
15disaster relief services.
16    (d) The moneys collected by a municipality under this
17Section may be expended solely to promote tourism and
18conventions within that municipality or otherwise to attract
19nonresident overnight visitors to the municipality. No moneys
20received under this Section may be used to advertise for or
21otherwise promote new competition in the hotel business.
22    (e) As used in this Section, "hotel" has the meaning set
23forth in Section 2 of the Hotel Operators' Occupation Tax Act.
24(Source: P.A. 96-238, eff. 8-11-09.)
 
25    (65 ILCS 5/11-74.3-6)

 

 

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1    Sec. 11-74.3-6. Business district revenue and obligations;
2business district tax allocation fund.
3    (a) If the corporate authorities of a municipality have
4approved a business district plan, have designated a business
5district, and have elected to impose a tax by ordinance
6pursuant to subsection (10) or (11) of Section 11-74.3-3, then
7each year after the date of the approval of the ordinance but
8terminating upon the date all business district project costs
9and all obligations paying or reimbursing business district
10project costs, if any, have been paid, but in no event later
11than the dissolution date, all amounts generated by the
12retailers' occupation tax and service occupation tax shall be
13collected and the tax shall be enforced by the Department of
14Revenue in the same manner as all retailers' occupation taxes
15and service occupation taxes imposed in the municipality
16imposing the tax and all amounts generated by the hotel
17operators' occupation tax shall be collected and the tax shall
18be enforced by the municipality in the same manner as all hotel
19operators' occupation taxes imposed in the municipality
20imposing the tax. The corporate authorities of the municipality
21shall deposit the proceeds of the taxes imposed under
22subsections (10) and (11) of Section 11-74.3-3 into a special
23fund of the municipality called the "[Name of] Business
24District Tax Allocation Fund" for the purpose of paying or
25reimbursing business district project costs and obligations
26incurred in the payment of those costs.

 

 

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1    (b) The corporate authorities of a municipality that has
2designated a business district under this Law may, by
3ordinance, impose a Business District Retailers' Occupation
4Tax upon all persons engaged in the business of selling
5tangible personal property, other than an item of tangible
6personal property titled or registered with an agency of this
7State's government, at retail in the business district at a
8rate not to exceed 1% of the gross receipts from the sales made
9in the course of such business, to be imposed only in 0.25%
10increments. The tax may not be imposed on food for human
11consumption that is to be consumed off the premises where it is
12sold (other than alcoholic beverages, soft drinks, and food
13that has been prepared for immediate consumption),
14prescription and nonprescription medicines, drugs, medical
15appliances, modifications to a motor vehicle for the purpose of
16rendering it usable by a person with a disability, and insulin,
17urine testing materials, syringes, and needles used by
18diabetics, for human use.
19    The tax imposed under this subsection and all civil
20penalties that may be assessed as an incident thereof shall be
21collected and enforced by the Department of Revenue. The
22certificate of registration that is issued by the Department to
23a retailer under the Retailers' Occupation Tax Act shall permit
24the retailer to engage in a business that is taxable under any
25ordinance or resolution enacted pursuant to this subsection
26without registering separately with the Department under such

 

 

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1ordinance or resolution or under this subsection. The
2Department of Revenue shall have full power to administer and
3enforce this subsection; to collect all taxes and penalties due
4under this subsection in the manner hereinafter provided; and
5to determine all rights to credit memoranda arising on account
6of the erroneous payment of tax or penalty under this
7subsection. In the administration of, and compliance with, this
8subsection, the Department and persons who are subject to this
9subsection shall have the same rights, remedies, privileges,
10immunities, powers and duties, and be subject to the same
11conditions, restrictions, limitations, penalties, exclusions,
12exemptions, and definitions of terms and employ the same modes
13of procedure, as are prescribed in Sections 1, 1a through 1o, 2
14through 2-65 (in respect to all provisions therein other than
15the State rate of tax), 2c through 2h, 3 (except as to the
16disposition of taxes and penalties collected), 4, 5, 5a, 5c,
175d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
1812, 13, and 14 of the Retailers' Occupation Tax Act and all
19provisions of the Uniform Penalty and Interest Act, as fully as
20if those provisions were set forth herein.
21    Persons subject to any tax imposed under this subsection
22may reimburse themselves for their seller's tax liability under
23this subsection by separately stating the tax as an additional
24charge, which charge may be stated in combination, in a single
25amount, with State taxes that sellers are required to collect
26under the Use Tax Act, in accordance with such bracket

 

 

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1schedules as the Department may prescribe.
2    Whenever the Department determines that a refund should be
3made under this subsection to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified and to the person named in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the business district retailers' occupation
9tax fund.
10    The Department shall immediately pay over to the State
11Treasurer, ex officio, as trustee, all taxes, penalties, and
12interest collected under this subsection for deposit into the
13business district retailers' occupation tax fund.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the Department
16of Revenue, the Comptroller shall order transferred, and the
17Treasurer shall transfer, to the STAR Bonds Revenue Fund the
18local sales tax increment, as defined in the Innovation
19Development and Economy Act, collected under this subsection
20during the second preceding calendar month for sales within a
21STAR bond district.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to named municipalities
26from the business district retailers' occupation tax fund, the

 

 

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1municipalities to be those from which retailers have paid taxes
2or penalties under this subsection to the Department during the
3second preceding calendar month. The amount to be paid to each
4municipality shall be the amount (not including credit
5memoranda) collected under this subsection during the second
6preceding calendar month by the Department plus an amount the
7Department determines is necessary to offset any amounts that
8were erroneously paid to a different taxing body, and not
9including an amount equal to the amount of refunds made during
10the second preceding calendar month by the Department, less 2%
11of that amount, which shall be deposited into the Tax
12Compliance and Administration Fund and shall be used by the
13Department, subject to appropriation, to cover the costs of the
14Department in administering and enforcing the provisions of
15this subsection, on behalf of such municipality, and not
16including any amount that the Department determines is
17necessary to offset any amounts that were payable to a
18different taxing body but were erroneously paid to the
19municipality, and not including any amounts that are
20transferred to the STAR Bonds Revenue Fund. Within 10 days
21after receipt by the Comptroller of the disbursement
22certification to the municipalities provided for in this
23subsection to be given to the Comptroller by the Department,
24the Comptroller shall cause the orders to be drawn for the
25respective amounts in accordance with the directions contained
26in the certification. The proceeds of the tax paid to

 

 

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1municipalities under this subsection shall be deposited into
2the Business District Tax Allocation Fund by the municipality.
3    An ordinance imposing or discontinuing the tax under this
4subsection or effecting a change in the rate thereof shall
5either (i) be adopted and a certified copy thereof filed with
6the Department on or before the first day of April, whereupon
7the Department, if all other requirements of this subsection
8are met, shall proceed to administer and enforce this
9subsection as of the first day of July next following the
10adoption and filing; or (ii) be adopted and a certified copy
11thereof filed with the Department on or before the first day of
12October, whereupon, if all other requirements of this
13subsection are met, the Department shall proceed to administer
14and enforce this subsection as of the first day of January next
15following the adoption and filing.
16    The Department of Revenue shall not administer or enforce
17an ordinance imposing, discontinuing, or changing the rate of
18the tax under this subsection, until the municipality also
19provides, in the manner prescribed by the Department, the
20boundaries of the business district and each address in the
21business district in such a way that the Department can
22determine by its address whether a business is located in the
23business district. The municipality must provide this boundary
24and address information to the Department on or before April 1
25for administration and enforcement of the tax under this
26subsection by the Department beginning on the following July 1

 

 

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1and on or before October 1 for administration and enforcement
2of the tax under this subsection by the Department beginning on
3the following January 1. The Department of Revenue shall not
4administer or enforce any change made to the boundaries of a
5business district or address change, addition, or deletion
6until the municipality reports the boundary change or address
7change, addition, or deletion to the Department in the manner
8prescribed by the Department. The municipality must provide
9this boundary change information or address change, addition,
10or deletion to the Department on or before April 1 for
11administration and enforcement by the Department of the change
12beginning on the following July 1 and on or before October 1
13for administration and enforcement by the Department of the
14change beginning on the following January 1. The retailers in
15the business district shall be responsible for charging the tax
16imposed under this subsection. If a retailer is incorrectly
17included or excluded from the list of those required to collect
18the tax under this subsection, both the Department of Revenue
19and the retailer shall be held harmless if they reasonably
20relied on information provided by the municipality.
21    A municipality that imposes the tax under this subsection
22must submit to the Department of Revenue any other information
23as the Department may require for the administration and
24enforcement of the tax.
25    When certifying the amount of a monthly disbursement to a
26municipality under this subsection, the Department shall

 

 

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1increase or decrease the amount by an amount necessary to
2offset any misallocation of previous disbursements. The offset
3amount shall be the amount erroneously disbursed within the
4previous 6 months from the time a misallocation is discovered.
5    Nothing in this subsection shall be construed to authorize
6the municipality to impose a tax upon the privilege of engaging
7in any business which under the Constitution of the United
8States may not be made the subject of taxation by this State.
9    If a tax is imposed under this subsection (b), a tax shall
10also be imposed under subsection (c) of this Section.
11    (c) If a tax has been imposed under subsection (b), a
12Business District Service Occupation Tax shall also be imposed
13upon all persons engaged, in the business district, in the
14business of making sales of service, who, as an incident to
15making those sales of service, transfer tangible personal
16property within the business district, either in the form of
17tangible personal property or in the form of real estate as an
18incident to a sale of service. The tax shall be imposed at the
19same rate as the tax imposed in subsection (b) and shall not
20exceed 1% of the selling price of tangible personal property so
21transferred within the business district, to be imposed only in
220.25% increments. The tax may not be imposed on food for human
23consumption that is to be consumed off the premises where it is
24sold (other than alcoholic beverages, soft drinks, and food
25that has been prepared for immediate consumption),
26prescription and nonprescription medicines, drugs, medical

 

 

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1appliances, modifications to a motor vehicle for the purpose of
2rendering it usable by a person with a disability, and insulin,
3urine testing materials, syringes, and needles used by
4diabetics, for human use.
5    The tax imposed under this subsection and all civil
6penalties that may be assessed as an incident thereof shall be
7collected and enforced by the Department of Revenue. The
8certificate of registration which is issued by the Department
9to a retailer under the Retailers' Occupation Tax Act or under
10the Service Occupation Tax Act shall permit such registrant to
11engage in a business which is taxable under any ordinance or
12resolution enacted pursuant to this subsection without
13registering separately with the Department under such
14ordinance or resolution or under this subsection. The
15Department of Revenue shall have full power to administer and
16enforce this subsection; to collect all taxes and penalties due
17under this subsection; to dispose of taxes and penalties so
18collected in the manner hereinafter provided; and to determine
19all rights to credit memoranda arising on account of the
20erroneous payment of tax or penalty under this subsection. In
21the administration of, and compliance with this subsection, the
22Department and persons who are subject to this subsection shall
23have the same rights, remedies, privileges, immunities, powers
24and duties, and be subject to the same conditions,
25restrictions, limitations, penalties, exclusions, exemptions,
26and definitions of terms and employ the same modes of procedure

 

 

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1as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
2(in respect to all provisions therein other than the State rate
3of tax), 4 (except that the reference to the State shall be to
4the business district), 5, 7, 8 (except that the jurisdiction
5to which the tax shall be a debt to the extent indicated in
6that Section 8 shall be the municipality), 9 (except as to the
7disposition of taxes and penalties collected, and except that
8the returned merchandise credit for this tax may not be taken
9against any State tax), 10, 11, 12 (except the reference
10therein to Section 2b of the Retailers' Occupation Tax Act), 13
11(except that any reference to the State shall mean the
12municipality), the first paragraph of Section 15, and Sections
1316, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
14provisions of the Uniform Penalty and Interest Act, as fully as
15if those provisions were set forth herein.
16    Persons subject to any tax imposed under the authority
17granted in this subsection may reimburse themselves for their
18serviceman's tax liability hereunder by separately stating the
19tax as an additional charge, which charge may be stated in
20combination, in a single amount, with State tax that servicemen
21are authorized to collect under the Service Use Tax Act, in
22accordance with such bracket schedules as the Department may
23prescribe.
24    Whenever the Department determines that a refund should be
25made under this subsection to a claimant instead of issuing
26credit memorandum, the Department shall notify the State

 

 

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1Comptroller, who shall cause the order to be drawn for the
2amount specified, and to the person named, in such notification
3from the Department. Such refund shall be paid by the State
4Treasurer out of the business district retailers' occupation
5tax fund.
6    The Department shall forthwith pay over to the State
7Treasurer, ex-officio, as trustee, all taxes, penalties, and
8interest collected under this subsection for deposit into the
9business district retailers' occupation tax fund.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the Department
12of Revenue, the Comptroller shall order transferred, and the
13Treasurer shall transfer, to the STAR Bonds Revenue Fund the
14local sales tax increment, as defined in the Innovation
15Development and Economy Act, collected under this subsection
16during the second preceding calendar month for sales within a
17STAR bond district.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities
22from the business district retailers' occupation tax fund, the
23municipalities to be those from which suppliers and servicemen
24have paid taxes or penalties under this subsection to the
25Department during the second preceding calendar month. The
26amount to be paid to each municipality shall be the amount (not

 

 

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1including credit memoranda) collected under this subsection
2during the second preceding calendar month by the Department,
3less 2% of that amount, which shall be deposited into the Tax
4Compliance and Administration Fund and shall be used by the
5Department, subject to appropriation, to cover the costs of the
6Department in administering and enforcing the provisions of
7this subsection, and not including an amount equal to the
8amount of refunds made during the second preceding calendar
9month by the Department on behalf of such municipality, and not
10including any amounts that are transferred to the STAR Bonds
11Revenue Fund. Within 10 days after receipt, by the Comptroller,
12of the disbursement certification to the municipalities,
13provided for in this subsection to be given to the Comptroller
14by the Department, the Comptroller shall cause the orders to be
15drawn for the respective amounts in accordance with the
16directions contained in such certification. The proceeds of the
17tax paid to municipalities under this subsection shall be
18deposited into the Business District Tax Allocation Fund by the
19municipality.
20    An ordinance imposing or discontinuing the tax under this
21subsection or effecting a change in the rate thereof shall
22either (i) be adopted and a certified copy thereof filed with
23the Department on or before the first day of April, whereupon
24the Department, if all other requirements of this subsection
25are met, shall proceed to administer and enforce this
26subsection as of the first day of July next following the

 

 

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1adoption and filing; or (ii) be adopted and a certified copy
2thereof filed with the Department on or before the first day of
3October, whereupon, if all other conditions of this subsection
4are met, the Department shall proceed to administer and enforce
5this subsection as of the first day of January next following
6the adoption and filing.
7    The Department of Revenue shall not administer or enforce
8an ordinance imposing, discontinuing, or changing the rate of
9the tax under this subsection, until the municipality also
10provides, in the manner prescribed by the Department, the
11boundaries of the business district in such a way that the
12Department can determine by its address whether a business is
13located in the business district. The municipality must provide
14this boundary and address information to the Department on or
15before April 1 for administration and enforcement of the tax
16under this subsection by the Department beginning on the
17following July 1 and on or before October 1 for administration
18and enforcement of the tax under this subsection by the
19Department beginning on the following January 1. The Department
20of Revenue shall not administer or enforce any change made to
21the boundaries of a business district or address change,
22addition, or deletion until the municipality reports the
23boundary change or address change, addition, or deletion to the
24Department in the manner prescribed by the Department. The
25municipality must provide this boundary change information or
26address change, addition, or deletion to the Department on or

 

 

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1before April 1 for administration and enforcement by the
2Department of the change beginning on the following July 1 and
3on or before October 1 for administration and enforcement by
4the Department of the change beginning on the following January
51. The retailers in the business district shall be responsible
6for charging the tax imposed under this subsection. If a
7retailer is incorrectly included or excluded from the list of
8those required to collect the tax under this subsection, both
9the Department of Revenue and the retailer shall be held
10harmless if they reasonably relied on information provided by
11the municipality.
12    A municipality that imposes the tax under this subsection
13must submit to the Department of Revenue any other information
14as the Department may require for the administration and
15enforcement of the tax.
16    Nothing in this subsection shall be construed to authorize
17the municipality to impose a tax upon the privilege of engaging
18in any business which under the Constitution of the United
19States may not be made the subject of taxation by the State.
20    If a tax is imposed under this subsection (c), a tax shall
21also be imposed under subsection (b) of this Section.
22    (d) By ordinance, a municipality that has designated a
23business district under this Law may impose an occupation tax
24upon all persons engaged in the business district in the
25business of renting, leasing, or letting rooms in a hotel, as
26defined in the Hotel Operators' Occupation Tax Act, at a rate

 

 

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1not to exceed 1% of the gross rental receipts from the renting,
2leasing, or letting of hotel rooms within the business
3district, to be imposed only in 0.25% increments, excluding,
4however, from gross rental receipts the proceeds of renting,
5leasing, or letting to permanent residents of a hotel, as
6defined in the Hotel Operators' Occupation Tax Act, and
7proceeds from the tax imposed under subsection (c) of Section
813 of the Metropolitan Pier and Exposition Authority Act.
9    The tax imposed by the municipality under this subsection
10and all civil penalties that may be assessed as an incident to
11that tax shall be collected and enforced by the municipality
12imposing the tax. The municipality shall have full power to
13administer and enforce this subsection, to collect all taxes
14and penalties due under this subsection, to dispose of taxes
15and penalties so collected in the manner provided in this
16subsection, and to determine all rights to credit memoranda
17arising on account of the erroneous payment of tax or penalty
18under this subsection. In the administration of and compliance
19with this subsection, the municipality and persons who are
20subject to this subsection shall have the same rights,
21remedies, privileges, immunities, powers, and duties, shall be
22subject to the same conditions, restrictions, limitations,
23penalties, and definitions of terms, and shall employ the same
24modes of procedure as are employed with respect to a tax
25adopted by the municipality under Section 8-3-14 of this Code.
26    Persons subject to any tax imposed under the authority

 

 

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1granted in this subsection may reimburse themselves for their
2tax liability for that tax by separately stating that tax as an
3additional charge, which charge may be stated in combination,
4in a single amount, with State taxes imposed under the Hotel
5Operators' Occupation Tax Act, and with any other tax.
6    Nothing in this subsection shall be construed to authorize
7a municipality to impose a tax upon the privilege of engaging
8in any business which under the Constitution of the United
9States may not be made the subject of taxation by this State.
10    The proceeds of the tax imposed under this subsection shall
11be deposited into the Business District Tax Allocation Fund.
12    Notwithstanding any other provision of law, the tax under
13this subsection (d) is not imposed on the renting, leasing, or
14letting of hotel rooms to the American Red Cross for the
15provision or coordination of disaster relief services. This
16exemption for the renting, leasing, or letting of hotel rooms
17to the American Red Cross shall not apply except during the
18provision or coordination of disaster relief services.
19    (e) Obligations secured by the Business District Tax
20Allocation Fund may be issued to provide for the payment or
21reimbursement of business district project costs. Those
22obligations, when so issued, shall be retired in the manner
23provided in the ordinance authorizing the issuance of those
24obligations by the receipts of taxes imposed pursuant to
25subsections (10) and (11) of Section 11-74.3-3 and by other
26revenue designated or pledged by the municipality. A

 

 

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1municipality may in the ordinance pledge, for any period of
2time up to and including the dissolution date, all or any part
3of the funds in and to be deposited in the Business District
4Tax Allocation Fund to the payment of business district project
5costs and obligations. Whenever a municipality pledges all of
6the funds to the credit of a business district tax allocation
7fund to secure obligations issued or to be issued to pay or
8reimburse business district project costs, the municipality
9may specifically provide that funds remaining to the credit of
10such business district tax allocation fund after the payment of
11such obligations shall be accounted for annually and shall be
12deemed to be "surplus" funds, and such "surplus" funds shall be
13expended by the municipality for any business district project
14cost as approved in the business district plan. Whenever a
15municipality pledges less than all of the monies to the credit
16of a business district tax allocation fund to secure
17obligations issued or to be issued to pay or reimburse business
18district project costs, the municipality shall provide that
19monies to the credit of the business district tax allocation
20fund and not subject to such pledge or otherwise encumbered or
21required for payment of contractual obligations for specific
22business district project costs shall be calculated annually
23and shall be deemed to be "surplus" funds, and such "surplus"
24funds shall be expended by the municipality for any business
25district project cost as approved in the business district
26plan.

 

 

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1    No obligation issued pursuant to this Law and secured by a
2pledge of all or any portion of any revenues received or to be
3received by the municipality from the imposition of taxes
4pursuant to subsection (10) of Section 11-74.3-3, shall be
5deemed to constitute an economic incentive agreement under
6Section 8-11-20, notwithstanding the fact that such pledge
7provides for the sharing, rebate, or payment of retailers'
8occupation taxes or service occupation taxes imposed pursuant
9to subsection (10) of Section 11-74.3-3 and received or to be
10received by the municipality from the development or
11redevelopment of properties in the business district.
12    Without limiting the foregoing in this Section, the
13municipality may further secure obligations secured by the
14business district tax allocation fund with a pledge, for a
15period not greater than the term of the obligations and in any
16case not longer than the dissolution date, of any part or any
17combination of the following: (i) net revenues of all or part
18of any business district project; (ii) taxes levied or imposed
19by the municipality on any or all property in the municipality,
20including, specifically, taxes levied or imposed by the
21municipality in a special service area pursuant to the Special
22Service Area Tax Law; (iii) the full faith and credit of the
23municipality; (iv) a mortgage on part or all of the business
24district project; or (v) any other taxes or anticipated
25receipts that the municipality may lawfully pledge.
26    Such obligations may be issued in one or more series, bear

 

 

HB2773- 31 -LRB101 04939 TAE 49948 b

1such date or dates, become due at such time or times as therein
2provided, but in any case not later than (i) 20 years after the
3date of issue or (ii) the dissolution date, whichever is
4earlier, bear interest payable at such intervals and at such
5rate or rates as set forth therein, except as may be limited by
6applicable law, which rate or rates may be fixed or variable,
7be in such denominations, be in such form, either coupon,
8registered, or book-entry, carry such conversion, registration
9and exchange privileges, be subject to defeasance upon such
10terms, have such rank or priority, be executed in such manner,
11be payable in such medium or payment at such place or places
12within or without the State, make provision for a corporate
13trustee within or without the State with respect to such
14obligations, prescribe the rights, powers, and duties thereof
15to be exercised for the benefit of the municipality and the
16benefit of the owners of such obligations, provide for the
17holding in trust, investment, and use of moneys, funds, and
18accounts held under an ordinance, provide for assignment of and
19direct payment of the moneys to pay such obligations or to be
20deposited into such funds or accounts directly to such trustee,
21be subject to such terms of redemption with or without premium,
22and be sold at such price, all as the corporate authorities
23shall determine. No referendum approval of the electors shall
24be required as a condition to the issuance of obligations
25pursuant to this Law except as provided in this Section.
26    In the event the municipality authorizes the issuance of

 

 

HB2773- 32 -LRB101 04939 TAE 49948 b

1obligations pursuant to the authority of this Law secured by
2the full faith and credit of the municipality, or pledges ad
3valorem taxes pursuant to this subsection, which obligations
4are other than obligations which may be issued under home rule
5powers provided by Section 6 of Article VII of the Illinois
6Constitution or which ad valorem taxes are other than ad
7valorem taxes which may be pledged under home rule powers
8provided by Section 6 of Article VII of the Illinois
9Constitution or which are levied in a special service area
10pursuant to the Special Service Area Tax Law, the ordinance
11authorizing the issuance of those obligations or pledging those
12taxes shall be published within 10 days after the ordinance has
13been adopted, in a newspaper having a general circulation
14within the municipality. The publication of the ordinance shall
15be accompanied by a notice of (i) the specific number of voters
16required to sign a petition requesting the question of the
17issuance of the obligations or pledging such ad valorem taxes
18to be submitted to the electors; (ii) the time within which the
19petition must be filed; and (iii) the date of the prospective
20referendum. The municipal clerk shall provide a petition form
21to any individual requesting one.
22    If no petition is filed with the municipal clerk, as
23hereinafter provided in this Section, within 21 days after the
24publication of the ordinance, the ordinance shall be in effect.
25However, if within that 21-day period a petition is filed with
26the municipal clerk, signed by electors numbering not less than

 

 

HB2773- 33 -LRB101 04939 TAE 49948 b

115% of the number of electors voting for the mayor or president
2at the last general municipal election, asking that the
3question of issuing obligations using full faith and credit of
4the municipality as security for the cost of paying or
5reimbursing business district project costs, or of pledging
6such ad valorem taxes for the payment of those obligations, or
7both, be submitted to the electors of the municipality, the
8municipality shall not be authorized to issue obligations of
9the municipality using the full faith and credit of the
10municipality as security or pledging such ad valorem taxes for
11the payment of those obligations, or both, until the
12proposition has been submitted to and approved by a majority of
13the voters voting on the proposition at a regularly scheduled
14election. The municipality shall certify the proposition to the
15proper election authorities for submission in accordance with
16the general election law.
17    The ordinance authorizing the obligations may provide that
18the obligations shall contain a recital that they are issued
19pursuant to this Law, which recital shall be conclusive
20evidence of their validity and of the regularity of their
21issuance.
22    In the event the municipality authorizes issuance of
23obligations pursuant to this Law secured by the full faith and
24credit of the municipality, the ordinance authorizing the
25obligations may provide for the levy and collection of a direct
26annual tax upon all taxable property within the municipality

 

 

HB2773- 34 -LRB101 04939 TAE 49948 b

1sufficient to pay the principal thereof and interest thereon as
2it matures, which levy may be in addition to and exclusive of
3the maximum of all other taxes authorized to be levied by the
4municipality, which levy, however, shall be abated to the
5extent that monies from other sources are available for payment
6of the obligations and the municipality certifies the amount of
7those monies available to the county clerk.
8    A certified copy of the ordinance shall be filed with the
9county clerk of each county in which any portion of the
10municipality is situated, and shall constitute the authority
11for the extension and collection of the taxes to be deposited
12in the business district tax allocation fund.
13    A municipality may also issue its obligations to refund, in
14whole or in part, obligations theretofore issued by the
15municipality under the authority of this Law, whether at or
16prior to maturity. However, the last maturity of the refunding
17obligations shall not be expressed to mature later than the
18dissolution date.
19    In the event a municipality issues obligations under home
20rule powers or other legislative authority, the proceeds of
21which are pledged to pay or reimburse business district project
22costs, the municipality may, if it has followed the procedures
23in conformance with this Law, retire those obligations from
24funds in the business district tax allocation fund in amounts
25and in such manner as if those obligations had been issued
26pursuant to the provisions of this Law.

 

 

HB2773- 35 -LRB101 04939 TAE 49948 b

1    No obligations issued pursuant to this Law shall be
2regarded as indebtedness of the municipality issuing those
3obligations or any other taxing district for the purpose of any
4limitation imposed by law.
5    Obligations issued pursuant to this Law shall not be
6subject to the provisions of the Bond Authorization Act.
7    (f) When business district project costs, including,
8without limitation, all obligations paying or reimbursing
9business district project costs have been paid, any surplus
10funds then remaining in the Business District Tax Allocation
11Fund shall be distributed to the municipal treasurer for
12deposit into the general corporate fund of the municipality.
13Upon payment of all business district project costs and
14retirement of all obligations paying or reimbursing business
15district project costs, but in no event more than 23 years
16after the date of adoption of the ordinance imposing taxes
17pursuant to subsection (10) or (11) of Section 11-74.3-3, the
18municipality shall adopt an ordinance immediately rescinding
19the taxes imposed pursuant to subsection (10) or (11) of
20Section 11-74.3-3.
21(Source: P.A. 99-143, eff. 7-27-15.)
 
22    Section 20. The Metropolitan Pier and Exposition Authority
23Act is amended by changing Section 13 as follows:
 
24    (70 ILCS 210/13)  (from Ch. 85, par. 1233)

 

 

HB2773- 36 -LRB101 04939 TAE 49948 b

1    Sec. 13. (a) The Authority shall not have power to levy
2taxes for any purpose, except as provided in subsections (b),
3(c), (d), (e), and (f).
4    (b) By ordinance the Authority shall, as soon as
5practicable after July 1, 1992 (the effective date of Public
6Act 87-733), impose a Metropolitan Pier and Exposition
7Authority Retailers' Occupation Tax upon all persons engaged in
8the business of selling tangible personal property at retail
9within the territory described in this subsection at the rate
10of 1.0% of the gross receipts (i) from the sale of food,
11alcoholic beverages, and soft drinks sold for consumption on
12the premises where sold and (ii) from the sale of food,
13alcoholic beverages, and soft drinks sold for consumption off
14the premises where sold by a retailer whose principal source of
15gross receipts is from the sale of food, alcoholic beverages,
16and soft drinks prepared for immediate consumption.
17    The tax imposed under this subsection and all civil
18penalties that may be assessed as an incident to that tax shall
19be collected and enforced by the Illinois Department of
20Revenue. The Department shall have full power to administer and
21enforce this subsection, to collect all taxes and penalties so
22collected in the manner provided in this subsection, and to
23determine all rights to credit memoranda arising on account of
24the erroneous payment of tax or penalty under this subsection.
25In the administration of and compliance with this subsection,
26the Department and persons who are subject to this subsection

 

 

HB2773- 37 -LRB101 04939 TAE 49948 b

1shall have the same rights, remedies, privileges, immunities,
2powers, and duties, shall be subject to the same conditions,
3restrictions, limitations, penalties, exclusions, exemptions,
4and definitions of terms, and shall employ the same modes of
5procedure applicable to this Retailers' Occupation Tax as are
6prescribed in Sections 1, 2 through 2-65 (in respect to all
7provisions of those Sections other than the State rate of
8taxes), 2c, 2h, 2i, 3 (except as to the disposition of taxes
9and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
105j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until January
111, 1994, 13.5 of the Retailers' Occupation Tax Act, and, on and
12after January 1, 1994, all applicable provisions of the Uniform
13Penalty and Interest Act that are not inconsistent with this
14Act, as fully as if provisions contained in those Sections of
15the Retailers' Occupation Tax Act were set forth in this
16subsection.
17    Persons subject to any tax imposed under the authority
18granted in this subsection may reimburse themselves for their
19seller's tax liability under this subsection by separately
20stating that tax as an additional charge, which charge may be
21stated in combination, in a single amount, with State taxes
22that sellers are required to collect under the Use Tax Act,
23pursuant to bracket schedules as the Department may prescribe.
24The retailer filing the return shall, at the time of filing the
25return, pay to the Department the amount of tax imposed under
26this subsection, less a discount of 1.75%, which is allowed to

 

 

HB2773- 38 -LRB101 04939 TAE 49948 b

1reimburse the retailer for the expenses incurred in keeping
2records, preparing and filing returns, remitting the tax, and
3supplying data to the Department on request.
4    Whenever the Department determines that a refund should be
5made under this subsection to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause a warrant to be drawn for the
8amount specified and to the person named in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the Metropolitan Pier and Exposition Authority
11trust fund held by the State Treasurer as trustee for the
12Authority.
13    Nothing in this subsection authorizes the Authority to
14impose a tax upon the privilege of engaging in any business
15that under the Constitution of the United States may not be
16made the subject of taxation by this State.
17    The Department shall forthwith pay over to the State
18Treasurer, ex officio, as trustee for the Authority, all taxes
19and penalties collected under this subsection for deposit into
20a trust fund held outside of the State Treasury.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this subsection

 

 

HB2773- 39 -LRB101 04939 TAE 49948 b

1during the second preceding calendar month for sales within a
2STAR bond district.
3    After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6amounts to be paid under subsection (g) of this Section, which
7shall be the amounts, not including credit memoranda, collected
8under this subsection during the second preceding calendar
9month by the Department, less any amounts determined by the
10Department to be necessary for the payment of refunds, less
111.5% of such balance, which sum shall be deposited by the State
12Treasurer into the Tax Compliance and Administration Fund in
13the State Treasury from which it shall be appropriated to the
14Department to cover the costs of the Department in
15administering and enforcing the provisions of this subsection,
16and less any amounts that are transferred to the STAR Bonds
17Revenue Fund. Within 10 days after receipt by the Comptroller
18of the certification, the Comptroller shall cause the orders to
19be drawn for the remaining amounts, and the Treasurer shall
20administer those amounts as required in subsection (g).
21    A certificate of registration issued by the Illinois
22Department of Revenue to a retailer under the Retailers'
23Occupation Tax Act shall permit the registrant to engage in a
24business that is taxed under the tax imposed under this
25subsection, and no additional registration shall be required
26under the ordinance imposing the tax or under this subsection.

 

 

HB2773- 40 -LRB101 04939 TAE 49948 b

1    A certified copy of any ordinance imposing or discontinuing
2any tax under this subsection or effecting a change in the rate
3of that tax shall be filed with the Department, whereupon the
4Department shall proceed to administer and enforce this
5subsection on behalf of the Authority as of the first day of
6the third calendar month following the date of filing.
7    The tax authorized to be levied under this subsection may
8be levied within all or any part of the following described
9portions of the metropolitan area:
10        (1) that portion of the City of Chicago located within
11    the following area: Beginning at the point of intersection
12    of the Cook County - DuPage County line and York Road, then
13    North along York Road to its intersection with Touhy
14    Avenue, then east along Touhy Avenue to its intersection
15    with the Northwest Tollway, then southeast along the
16    Northwest Tollway to its intersection with Lee Street, then
17    south along Lee Street to Higgins Road, then south and east
18    along Higgins Road to its intersection with Mannheim Road,
19    then south along Mannheim Road to its intersection with
20    Irving Park Road, then west along Irving Park Road to its
21    intersection with the Cook County - DuPage County line,
22    then north and west along the county line to the point of
23    beginning; and
24        (2) that portion of the City of Chicago located within
25    the following area: Beginning at the intersection of West
26    55th Street with Central Avenue, then east along West 55th

 

 

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1    Street to its intersection with South Cicero Avenue, then
2    south along South Cicero Avenue to its intersection with
3    West 63rd Street, then west along West 63rd Street to its
4    intersection with South Central Avenue, then north along
5    South Central Avenue to the point of beginning; and
6        (3) that portion of the City of Chicago located within
7    the following area: Beginning at the point 150 feet west of
8    the intersection of the west line of North Ashland Avenue
9    and the north line of West Diversey Avenue, then north 150
10    feet, then east along a line 150 feet north of the north
11    line of West Diversey Avenue extended to the shoreline of
12    Lake Michigan, then following the shoreline of Lake
13    Michigan (including Navy Pier and all other improvements
14    fixed to land, docks, or piers) to the point where the
15    shoreline of Lake Michigan and the Adlai E. Stevenson
16    Expressway extended east to that shoreline intersect, then
17    west along the Adlai E. Stevenson Expressway to a point 150
18    feet west of the west line of South Ashland Avenue, then
19    north along a line 150 feet west of the west line of South
20    and North Ashland Avenue to the point of beginning.
21    The tax authorized to be levied under this subsection may
22also be levied on food, alcoholic beverages, and soft drinks
23sold on boats and other watercraft departing from and returning
24to the shoreline of Lake Michigan (including Navy Pier and all
25other improvements fixed to land, docks, or piers) described in
26item (3).

 

 

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1    (c) By ordinance the Authority shall, as soon as
2practicable after July 1, 1992 (the effective date of Public
3Act 87-733), impose an occupation tax upon all persons engaged
4in the corporate limits of the City of Chicago in the business
5of renting, leasing, or letting rooms in a hotel, as defined in
6the Hotel Operators' Occupation Tax Act, at a rate of 2.5% of
7the gross rental receipts from the renting, leasing, or letting
8of hotel rooms within the City of Chicago, excluding, however,
9from gross rental receipts the proceeds of renting, leasing, or
10letting to permanent residents of a hotel, as defined in that
11Act. Gross rental receipts shall not include charges that are
12added on account of the liability arising from any tax imposed
13by the State or any governmental agency on the occupation of
14renting, leasing, or letting rooms in a hotel.
15    The tax imposed by the Authority under this subsection and
16all civil penalties that may be assessed as an incident to that
17tax shall be collected and enforced by the Illinois Department
18of Revenue. The certificate of registration that is issued by
19the Department to a lessor under the Hotel Operators'
20Occupation Tax Act shall permit that registrant to engage in a
21business that is taxable under any ordinance enacted under this
22subsection without registering separately with the Department
23under that ordinance or under this subsection. The Department
24shall have full power to administer and enforce this
25subsection, to collect all taxes and penalties due under this
26subsection, to dispose of taxes and penalties so collected in

 

 

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1the manner provided in this subsection, and to determine all
2rights to credit memoranda arising on account of the erroneous
3payment of tax or penalty under this subsection. In the
4administration of and compliance with this subsection, the
5Department and persons who are subject to this subsection shall
6have the same rights, remedies, privileges, immunities,
7powers, and duties, shall be subject to the same conditions,
8restrictions, limitations, penalties, and definitions of
9terms, and shall employ the same modes of procedure as are
10prescribed in the Hotel Operators' Occupation Tax Act (except
11where that Act is inconsistent with this subsection), as fully
12as if the provisions contained in the Hotel Operators'
13Occupation Tax Act were set out in this subsection.
14    Whenever the Department determines that a refund should be
15made under this subsection to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause a warrant to be drawn for the
18amount specified and to the person named in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the Metropolitan Pier and Exposition Authority
21trust fund held by the State Treasurer as trustee for the
22Authority.
23    Persons subject to any tax imposed under the authority
24granted in this subsection may reimburse themselves for their
25tax liability for that tax by separately stating that tax as an
26additional charge, which charge may be stated in combination,

 

 

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1in a single amount, with State taxes imposed under the Hotel
2Operators' Occupation Tax Act, the municipal tax imposed under
3Section 8-3-13 of the Illinois Municipal Code, and the tax
4imposed under Section 19 of the Illinois Sports Facilities
5Authority Act.
6    The person filing the return shall, at the time of filing
7the return, pay to the Department the amount of tax, less a
8discount of 2.1% or $25 per calendar year, whichever is
9greater, which is allowed to reimburse the operator for the
10expenses incurred in keeping records, preparing and filing
11returns, remitting the tax, and supplying data to the
12Department on request.
13    Except as otherwise provided in this paragraph, the
14Department shall forthwith pay over to the State Treasurer, ex
15officio, as trustee for the Authority, all taxes and penalties
16collected under this subsection for deposit into a trust fund
17held outside the State Treasury. On or before the 25th day of
18each calendar month, the Department shall certify to the
19Comptroller the amounts to be paid under subsection (g) of this
20Section, which shall be the amounts (not including credit
21memoranda) collected under this subsection during the second
22preceding calendar month by the Department, less any amounts
23determined by the Department to be necessary for payment of
24refunds, less 1.5% of the remainder, which the Department shall
25transfer into the Tax Compliance and Administration Fund. The
26Department, at the time of each monthly disbursement to the

 

 

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1Authority, shall prepare and certify to the State Comptroller
2the amount to be transferred into the Tax Compliance and
3Administration Fund under this subsection. Within 10 days after
4receipt by the Comptroller of the Department's certification,
5the Comptroller shall cause the orders to be drawn for such
6amounts, and the Treasurer shall administer the amounts
7distributed to the Authority as required in subsection (g).
8    A certified copy of any ordinance imposing or discontinuing
9a tax under this subsection or effecting a change in the rate
10of that tax shall be filed with the Illinois Department of
11Revenue, whereupon the Department shall proceed to administer
12and enforce this subsection on behalf of the Authority as of
13the first day of the third calendar month following the date of
14filing.
15    Notwithstanding any other provision of law, the tax is not
16imposed on the renting, leasing, or letting of hotel rooms to
17the American Red Cross for the provision or coordination of
18disaster relief services. This exemption for the renting,
19leasing, or letting of hotel rooms to the American Red Cross
20shall not apply except during the provision or coordination of
21disaster relief services.
22    (d) By ordinance the Authority shall, as soon as
23practicable after July 1, 1992 (the effective date of Public
24Act 87-733), impose a tax upon all persons engaged in the
25business of renting automobiles in the metropolitan area at the
26rate of 6% of the gross receipts from that business, except

 

 

HB2773- 46 -LRB101 04939 TAE 49948 b

1that no tax shall be imposed on the business of renting
2automobiles for use as taxicabs or in livery service. The tax
3imposed under this subsection and all civil penalties that may
4be assessed as an incident to that tax shall be collected and
5enforced by the Illinois Department of Revenue. The certificate
6of registration issued by the Department to a retailer under
7the Retailers' Occupation Tax Act or under the Automobile
8Renting Occupation and Use Tax Act shall permit that person to
9engage in a business that is taxable under any ordinance
10enacted under this subsection without registering separately
11with the Department under that ordinance or under this
12subsection. The Department shall have full power to administer
13and enforce this subsection, to collect all taxes and penalties
14due under this subsection, to dispose of taxes and penalties so
15collected in the manner provided in this subsection, and to
16determine all rights to credit memoranda arising on account of
17the erroneous payment of tax or penalty under this subsection.
18In the administration of and compliance with this subsection,
19the Department and persons who are subject to this subsection
20shall have the same rights, remedies, privileges, immunities,
21powers, and duties, be subject to the same conditions,
22restrictions, limitations, penalties, and definitions of
23terms, and employ the same modes of procedure as are prescribed
24in Sections 2 and 3 (in respect to all provisions of those
25Sections other than the State rate of tax; and in respect to
26the provisions of the Retailers' Occupation Tax Act referred to

 

 

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1in those Sections, except as to the disposition of taxes and
2penalties collected, except for the provision allowing
3retailers a deduction from the tax to cover certain costs, and
4except that credit memoranda issued under this subsection may
5not be used to discharge any State tax liability) of the
6Automobile Renting Occupation and Use Tax Act, as fully as if
7provisions contained in those Sections of that Act were set
8forth in this subsection.
9    Persons subject to any tax imposed under the authority
10granted in this subsection may reimburse themselves for their
11tax liability under this subsection by separately stating that
12tax as an additional charge, which charge may be stated in
13combination, in a single amount, with State tax that sellers
14are required to collect under the Automobile Renting Occupation
15and Use Tax Act, pursuant to bracket schedules as the
16Department may prescribe.
17    Whenever the Department determines that a refund should be
18made under this subsection to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause a warrant to be drawn for the
21amount specified and to the person named in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the Metropolitan Pier and Exposition Authority
24trust fund held by the State Treasurer as trustee for the
25Authority.
26    Except as otherwise provided in this paragraph, the

 

 

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1Department shall forthwith pay over to the State Treasurer, ex
2officio, as trustee, all taxes and penalties collected under
3this subsection for deposit into a trust fund held outside the
4State Treasury. On or before the 25th day of each calendar
5month, the Department shall certify to the Comptroller the
6amounts to be paid under subsection (g) of this Section (not
7including credit memoranda) collected under this subsection
8during the second preceding calendar month by the Department,
9less any amount determined by the Department to be necessary
10for payment of refunds, less 1.5% of the remainder, which the
11Department shall transfer into the Tax Compliance and
12Administration Fund. The Department, at the time of each
13monthly disbursement to the Authority, shall prepare and
14certify to the State Comptroller the amount to be transferred
15into the Tax Compliance and Administration Fund under this
16subsection. Within 10 days after receipt by the Comptroller of
17the Department's certification, the Comptroller shall cause
18the orders to be drawn for such amounts, and the Treasurer
19shall administer the amounts distributed to the Authority as
20required in subsection (g).
21    Nothing in this subsection authorizes the Authority to
22impose a tax upon the privilege of engaging in any business
23that under the Constitution of the United States may not be
24made the subject of taxation by this State.
25    A certified copy of any ordinance imposing or discontinuing
26a tax under this subsection or effecting a change in the rate

 

 

HB2773- 49 -LRB101 04939 TAE 49948 b

1of that tax shall be filed with the Illinois Department of
2Revenue, whereupon the Department shall proceed to administer
3and enforce this subsection on behalf of the Authority as of
4the first day of the third calendar month following the date of
5filing.
6    (e) By ordinance the Authority shall, as soon as
7practicable after July 1, 1992 (the effective date of Public
8Act 87-733), impose a tax upon the privilege of using in the
9metropolitan area an automobile that is rented from a rentor
10outside Illinois and is titled or registered with an agency of
11this State's government at a rate of 6% of the rental price of
12that automobile, except that no tax shall be imposed on the
13privilege of using automobiles rented for use as taxicabs or in
14livery service. The tax shall be collected from persons whose
15Illinois address for titling or registration purposes is given
16as being in the metropolitan area. The tax shall be collected
17by the Department of Revenue for the Authority. The tax must be
18paid to the State or an exemption determination must be
19obtained from the Department of Revenue before the title or
20certificate of registration for the property may be issued. The
21tax or proof of exemption may be transmitted to the Department
22by way of the State agency with which or State officer with
23whom the tangible personal property must be titled or
24registered if the Department and that agency or State officer
25determine that this procedure will expedite the processing of
26applications for title or registration.

 

 

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1    The Department shall have full power to administer and
2enforce this subsection, to collect all taxes, penalties, and
3interest due under this subsection, to dispose of taxes,
4penalties, and interest so collected in the manner provided in
5this subsection, and to determine all rights to credit
6memoranda or refunds arising on account of the erroneous
7payment of tax, penalty, or interest under this subsection. In
8the administration of and compliance with this subsection, the
9Department and persons who are subject to this subsection shall
10have the same rights, remedies, privileges, immunities,
11powers, and duties, be subject to the same conditions,
12restrictions, limitations, penalties, and definitions of
13terms, and employ the same modes of procedure as are prescribed
14in Sections 2 and 4 (except provisions pertaining to the State
15rate of tax; and in respect to the provisions of the Use Tax
16Act referred to in that Section, except provisions concerning
17collection or refunding of the tax by retailers, except the
18provisions of Section 19 pertaining to claims by retailers,
19except the last paragraph concerning refunds, and except that
20credit memoranda issued under this subsection may not be used
21to discharge any State tax liability) of the Automobile Renting
22Occupation and Use Tax Act, as fully as if provisions contained
23in those Sections of that Act were set forth in this
24subsection.
25    Whenever the Department determines that a refund should be
26made under this subsection to a claimant instead of issuing a

 

 

HB2773- 51 -LRB101 04939 TAE 49948 b

1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause a warrant to be drawn for the
3amount specified and to the person named in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the Metropolitan Pier and Exposition Authority
6trust fund held by the State Treasurer as trustee for the
7Authority.
8    Except as otherwise provided in this paragraph, the
9Department shall forthwith pay over to the State Treasurer, ex
10officio, as trustee, all taxes, penalties, and interest
11collected under this subsection for deposit into a trust fund
12held outside the State Treasury. On or before the 25th day of
13each calendar month, the Department shall certify to the State
14Comptroller the amounts to be paid under subsection (g) of this
15Section, which shall be the amounts (not including credit
16memoranda) collected under this subsection during the second
17preceding calendar month by the Department, less any amounts
18determined by the Department to be necessary for payment of
19refunds, less 1.5% of the remainder, which the Department shall
20transfer into the Tax Compliance and Administration Fund. The
21Department, at the time of each monthly disbursement to the
22Authority, shall prepare and certify to the State Comptroller
23the amount to be transferred into the Tax Compliance and
24Administration Fund under this subsection. Within 10 days after
25receipt by the State Comptroller of the Department's
26certification, the Comptroller shall cause the orders to be

 

 

HB2773- 52 -LRB101 04939 TAE 49948 b

1drawn for such amounts, and the Treasurer shall administer the
2amounts distributed to the Authority as required in subsection
3(g).
4    A certified copy of any ordinance imposing or discontinuing
5a tax or effecting a change in the rate of that tax shall be
6filed with the Illinois Department of Revenue, whereupon the
7Department shall proceed to administer and enforce this
8subsection on behalf of the Authority as of the first day of
9the third calendar month following the date of filing.
10    (f) By ordinance the Authority shall, as soon as
11practicable after July 1, 1992 (the effective date of Public
12Act 87-733), impose an occupation tax on all persons, other
13than a governmental agency, engaged in the business of
14providing ground transportation for hire to passengers in the
15metropolitan area at a rate of (i) $4 per taxi or livery
16vehicle departure with passengers for hire from commercial
17service airports in the metropolitan area, (ii) for each
18departure with passengers for hire from a commercial service
19airport in the metropolitan area in a bus or van operated by a
20person other than a person described in item (iii): $18 per bus
21or van with a capacity of 1-12 passengers, $36 per bus or van
22with a capacity of 13-24 passengers, and $54 per bus or van
23with a capacity of over 24 passengers, and (iii) for each
24departure with passengers for hire from a commercial service
25airport in the metropolitan area in a bus or van operated by a
26person regulated by the Interstate Commerce Commission or

 

 

HB2773- 53 -LRB101 04939 TAE 49948 b

1Illinois Commerce Commission, operating scheduled service from
2the airport, and charging fares on a per passenger basis: $2
3per passenger for hire in each bus or van. The term "commercial
4service airports" means those airports receiving scheduled
5passenger service and enplaning more than 100,000 passengers
6per year.
7    In the ordinance imposing the tax, the Authority may
8provide for the administration and enforcement of the tax and
9the collection of the tax from persons subject to the tax as
10the Authority determines to be necessary or practicable for the
11effective administration of the tax. The Authority may enter
12into agreements as it deems appropriate with any governmental
13agency providing for that agency to act as the Authority's
14agent to collect the tax.
15    In the ordinance imposing the tax, the Authority may
16designate a method or methods for persons subject to the tax to
17reimburse themselves for the tax liability arising under the
18ordinance (i) by separately stating the full amount of the tax
19liability as an additional charge to passengers departing the
20airports, (ii) by separately stating one-half of the tax
21liability as an additional charge to both passengers departing
22from and to passengers arriving at the airports, or (iii) by
23some other method determined by the Authority.
24    All taxes, penalties, and interest collected under any
25ordinance adopted under this subsection, less any amounts
26determined to be necessary for the payment of refunds and less

 

 

HB2773- 54 -LRB101 04939 TAE 49948 b

1the taxes, penalties, and interest attributable to any increase
2in the rate of tax authorized by Public Act 96-898, shall be
3paid forthwith to the State Treasurer, ex officio, for deposit
4into a trust fund held outside the State Treasury and shall be
5administered by the State Treasurer as provided in subsection
6(g) of this Section. All taxes, penalties, and interest
7attributable to any increase in the rate of tax authorized by
8Public Act 96-898 shall be paid by the State Treasurer as
9follows: 25% for deposit into the Convention Center Support
10Fund, to be used by the Village of Rosemont for the repair,
11maintenance, and improvement of the Donald E. Stephens
12Convention Center and for debt service on debt instruments
13issued for those purposes by the village and 75% to the
14Authority to be used for grants to an organization meeting the
15qualifications set out in Section 5.6 of this Act, provided the
16Metropolitan Pier and Exposition Authority has entered into a
17marketing agreement with such an organization.
18    (g) Amounts deposited from the proceeds of taxes imposed by
19the Authority under subsections (b), (c), (d), (e), and (f) of
20this Section and amounts deposited under Section 19 of the
21Illinois Sports Facilities Authority Act shall be held in a
22trust fund outside the State Treasury and, other than the
23amounts transferred into the Tax Compliance and Administration
24Fund under subsections (b), (c), (d), and (e), shall be
25administered by the Treasurer as follows:
26        (1) An amount necessary for the payment of refunds with

 

 

HB2773- 55 -LRB101 04939 TAE 49948 b

1    respect to those taxes shall be retained in the trust fund
2    and used for those payments.
3        (2) On July 20 and on the 20th of each month
4    thereafter, provided that the amount requested in the
5    annual certificate of the Chairman of the Authority filed
6    under Section 8.25f of the State Finance Act has been
7    appropriated for payment to the Authority, 1/8 of the local
8    tax transfer amount, together with any cumulative
9    deficiencies in the amounts transferred into the McCormick
10    Place Expansion Project Fund under this subparagraph (2)
11    during the fiscal year for which the certificate has been
12    filed, shall be transferred from the trust fund into the
13    McCormick Place Expansion Project Fund in the State
14    treasury until 100% of the local tax transfer amount has
15    been so transferred. "Local tax transfer amount" shall mean
16    the amount requested in the annual certificate, minus the
17    reduction amount. "Reduction amount" shall mean $41.7
18    million in fiscal year 2011, $36.7 million in fiscal year
19    2012, $36.7 million in fiscal year 2013, $36.7 million in
20    fiscal year 2014, and $31.7 million in each fiscal year
21    thereafter until 2032, provided that the reduction amount
22    shall be reduced by (i) the amount certified by the
23    Authority to the State Comptroller and State Treasurer
24    under Section 8.25 of the State Finance Act, as amended,
25    with respect to that fiscal year and (ii) in any fiscal
26    year in which the amounts deposited in the trust fund under

 

 

HB2773- 56 -LRB101 04939 TAE 49948 b

1    this Section exceed $318.3 million, exclusive of amounts
2    set aside for refunds and for the reserve account, one
3    dollar for each dollar of the deposits in the trust fund
4    above $318.3 million with respect to that year, exclusive
5    of amounts set aside for refunds and for the reserve
6    account.
7        (3) On July 20, 2010, the Comptroller shall certify to
8    the Governor, the Treasurer, and the Chairman of the
9    Authority the 2010 deficiency amount, which means the
10    cumulative amount of transfers that were due from the trust
11    fund to the McCormick Place Expansion Project Fund in
12    fiscal years 2008, 2009, and 2010 under Section 13(g) of
13    this Act, as it existed prior to May 27, 2010 (the
14    effective date of Public Act 96-898), but not made. On July
15    20, 2011 and on July 20 of each year through July 20, 2014,
16    the Treasurer shall calculate for the previous fiscal year
17    the surplus revenues in the trust fund and pay that amount
18    to the Authority. On July 20, 2015 and on July 20 of each
19    year thereafter to and including July 20, 2017, as long as
20    bonds and notes issued under Section 13.2 or bonds and
21    notes issued to refund those bonds and notes are
22    outstanding, the Treasurer shall calculate for the
23    previous fiscal year the surplus revenues in the trust fund
24    and pay one-half of that amount to the State Treasurer for
25    deposit into the General Revenue Fund until the 2010
26    deficiency amount has been paid and shall pay the balance

 

 

HB2773- 57 -LRB101 04939 TAE 49948 b

1    of the surplus revenues to the Authority. On July 20, 2018
2    and on July 20 of each year thereafter, the Treasurer shall
3    calculate for the previous fiscal year the surplus revenues
4    in the trust fund and pay all of such surplus revenues to
5    the State Treasurer for deposit into the General Revenue
6    Fund until the 2010 deficiency amount has been paid. After
7    the 2010 deficiency amount has been paid, the Treasurer
8    shall pay the balance of the surplus revenues to the
9    Authority. "Surplus revenues" means the amounts remaining
10    in the trust fund on June 30 of the previous fiscal year
11    (A) after the State Treasurer has set aside in the trust
12    fund (i) amounts retained for refunds under subparagraph
13    (1) and (ii) any amounts necessary to meet the reserve
14    account amount and (B) after the State Treasurer has
15    transferred from the trust fund to the General Revenue Fund
16    100% of any post-2010 deficiency amount. "Reserve account
17    amount" means $15 million in fiscal year 2011 and $30
18    million in each fiscal year thereafter. The reserve account
19    amount shall be set aside in the trust fund and used as a
20    reserve to be transferred to the McCormick Place Expansion
21    Project Fund in the event the proceeds of taxes imposed
22    under this Section 13 are not sufficient to fund the
23    transfer required in subparagraph (2). "Post-2010
24    deficiency amount" means any deficiency in transfers from
25    the trust fund to the McCormick Place Expansion Project
26    Fund with respect to fiscal years 2011 and thereafter. It

 

 

HB2773- 58 -LRB101 04939 TAE 49948 b

1    is the intention of this subparagraph (3) that no surplus
2    revenues shall be paid to the Authority with respect to any
3    year in which a post-2010 deficiency amount has not been
4    satisfied by the Authority.
5    Moneys received by the Authority as surplus revenues may be
6used (i) for the purposes of paying debt service on the bonds
7and notes issued by the Authority, including early redemption
8of those bonds or notes, (ii) for the purposes of repair,
9replacement, and improvement of the grounds, buildings, and
10facilities of the Authority, and (iii) for the corporate
11purposes of the Authority in fiscal years 2011 through 2015 in
12an amount not to exceed $20,000,000 annually or $80,000,000
13total, which amount shall be reduced $0.75 for each dollar of
14the receipts of the Authority in that year from any contract
15entered into with respect to naming rights at McCormick Place
16under Section 5(m) of this Act. When bonds and notes issued
17under Section 13.2, or bonds or notes issued to refund those
18bonds and notes, are no longer outstanding, the balance in the
19trust fund shall be paid to the Authority.
20    (h) The ordinances imposing the taxes authorized by this
21Section shall be repealed when bonds and notes issued under
22Section 13.2 or bonds and notes issued to refund those bonds
23and notes are no longer outstanding.
24(Source: P.A. 100-23, Article 5, Section 5-35, eff. 7-6-17;
25100-23, Article 35, Section 35-25, eff. 7-6-17; 100-587, eff.
266-4-18; 100-863, eff. 8-14-18.)
 

 

 

HB2773- 59 -LRB101 04939 TAE 49948 b

1    Section 25. The Illinois Sports Facilities Authority Act is
2amended by changing Section 19 as follows:
 
3    (70 ILCS 3205/19)  (from Ch. 85, par. 6019)
4    Sec. 19. Tax. The Authority may impose an occupation tax
5upon all persons engaged in the City of Chicago in the business
6of renting, leasing or letting rooms in a hotel, as defined in
7The Hotel Operators' Occupation Tax Act, at a rate not to
8exceed 2% of the gross rental receipts from the renting,
9leasing or letting of hotel rooms located within the City of
10Chicago, excluding, however, from gross rental receipts, the
11proceeds of such renting, leasing or letting to permanent
12residents of that hotel and proceeds from the tax imposed under
13subsection (c) of Section 13 of the Metropolitan Pier and
14Exposition Authority Act.
15    The tax imposed by the Authority pursuant to this Section
16and all civil penalties that may be assessed as an incident
17thereof shall be collected and enforced by the State Department
18of Revenue. The certificate of registration which is issued by
19the Department to a lessor under The Hotel Operators'
20Occupation Tax Act shall permit such registrant to engage in a
21business which is taxable under any ordinance or resolution
22enacted pursuant to this Section without registering
23separately with the Department under such ordinance or
24resolution or under this Section. The Department shall have

 

 

HB2773- 60 -LRB101 04939 TAE 49948 b

1full power to administer and enforce this Section; to collect
2all taxes and penalties due hereunder; to dispose of taxes and
3penalties so collected in the manner provided in this Section,
4and to determine all rights to credit memoranda, arising on
5account of the erroneous payment of tax or penalty hereunder.
6In the administration of, and compliance with, this Section,
7the Department and persons who are subject to this Section
8shall have the same rights, remedies, privileges, immunities,
9powers and duties, and be subject to the same conditions,
10restrictions, limitations, penalties and definitions of terms,
11and employ the same modes of procedure, as are prescribed in
12The Hotel Operators' Occupation Tax Act (except where that Act
13is inconsistent herewith), as the same is now or may hereafter
14be amended, as fully as if the provisions contained in The
15Hotel Operators' Occupation Tax Act were set forth herein.
16    Whenever the Department determines that a refund should be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the warrant to be drawn for the
20amount specified, and to the person named, in such notification
21from the Department. Such refund shall be paid by the State
22Treasurer out of the amounts held by the State Treasurer as
23trustee for the Authority.
24    Persons subject to any tax imposed pursuant to authority
25granted by this Section may reimburse themselves for their tax
26liability for such tax by separately stating such tax as an

 

 

HB2773- 61 -LRB101 04939 TAE 49948 b

1additional charge, which charge may be stated in combination,
2in a single amount, with State tax imposed under The Hotel
3Operators' Occupation Tax Act, the municipal tax imposed under
4Section 8-3-13 of the Illinois Municipal Code, and the tax
5imposed under Section 13 of the Metropolitan Pier and
6Exposition Authority Act.
7    The Department shall forthwith pay over to the State
8Treasurer, ex-officio, as trustee for the Authority, all taxes
9and penalties collected hereunder for deposit in a trust fund
10outside the State Treasury. On or before the 25th day of each
11calendar month, the Department shall certify to the Comptroller
12the amount to be paid to or on behalf of the Authority from
13amounts collected hereunder by the Department, and deposited
14into such trust fund during the second preceding calendar
15month. The amount to be paid to or on behalf of the Authority
16shall be the amount (not including credit memoranda) collected
17hereunder during such second preceding calendar month by the
18Department, less an amount equal to the amount of refunds
19authorized during such second preceding calendar month by the
20Department on behalf of the Authority, and less 4% of such
21balance, which sum shall be retained by the State Treasurer to
22cover the costs incurred by the Department in administering and
23enforcing the provisions of this Section, as provided herein.
24Each such monthly certification by the Department shall also
25certify to the Comptroller the amount to be so retained by the
26State Treasurer for payment into the General Revenue Fund of

 

 

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1the State Treasury.
2    Each monthly certification by the Department shall
3certify, of the amount paid to or on behalf of the Authority,
4(i) the portion to be paid to the Authority, (ii) the portion
5to be paid into the General Revenue Fund of the State Treasury
6on behalf of the Authority as repayment of amounts advanced to
7the Authority pursuant to appropriation from the Illinois
8Sports Facilities Fund.
9    With respect to each State fiscal year, of the total amount
10to be paid to or on behalf of the Authority, the Department
11shall certify that payments shall first be made directly to the
12Authority in an amount equal to any difference between the
13annual amount certified by the Chairman of the Authority
14pursuant to Section 8.25-4 of the State Finance Act and the
15amount appropriated to the Authority from the Illinois Sports
16Facilities Fund. Next, the Department shall certify that
17payment shall be made into the General Revenue Fund of the
18State Treasury in an amount equal to the difference between (i)
19the lesser of (x) the amount appropriated from the Illinois
20Sports Facilities Fund to the Authority and (y) the annual
21amount certified by the Chairman of the Authority pursuant to
22Section 8.25-4 of the State Finance Act and (ii) $10,000,000.
23The Department shall certify that all additional amounts shall
24be paid to the Authority and used for its corporate purposes.
25    Within 10 days after receipt, by the Comptroller, of the
26Department's monthly certification of amounts to be paid to or

 

 

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1on behalf of the Authority and amounts to be paid into the
2General Revenue Fund, the Comptroller shall cause the warrants
3to be drawn for the respective amounts in accordance with the
4directions contained in such certification.
5    Amounts collected by the Department and paid to the
6Authority pursuant to this Section shall be used for the
7corporate purposes of the Authority. On June 15, 1992 and on
8each June 15 thereafter, the Authority shall repay to the State
9Treasurer all amounts paid to it under this Section and
10otherwise remaining available to the Authority after providing
11for (i) payment of principal and interest on, and other
12payments related to, its obligations issued or to be issued
13under Section 13 of the Act, including any deposits required to
14reserve funds created under any indenture or resolution
15authorizing issuance of the obligations and payments to
16providers of credit enhancement, (ii) payment of obligations
17under the provisions of any management agreement with respect
18to a facility or facilities owned by the Authority or of any
19assistance agreement with respect to any facility for which
20financial assistance is provided under this Act, and payment of
21other capital and operating expenses of the Authority,
22including any deposits required to reserve funds created for
23repair and replacement of capital assets and to meet the
24obligations of the Authority under any management agreement or
25assistance agreement. Amounts repaid by the Authority to the
26State Treasurer hereunder shall be treated as repayment of

 

 

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1amounts deposited into the Illinois Sports Facilities Fund and
2credited to the Subsidy Account and used for the corporate
3purposes of the Authority. The State Treasurer shall deposit
4$5,000,000 of the amount received into the General Revenue
5Fund; thereafter, at the beginning of each fiscal year the
6State Treasurer shall certify to the State Comptroller for all
7prior fiscal years the cumulative amount of any deficiencies in
8repayments to the City of Chicago of amounts in the Local
9Government Distributive Fund that would otherwise have been
10allocated to the City of Chicago under the State Revenue
11Sharing Act but instead were paid into the General Revenue Fund
12under Section 6 of the Hotel Operators' Occupation Tax Act and
13that have not been reimbursed, and the Comptroller shall,
14during the fiscal year at the beginning of which the
15certification was made, cause warrants to be drawn from the
16amount received for the repayment of that cumulative amount to
17the City of Chicago until that cumulative amount has been fully
18reimbursed; thereafter, the State Treasurer shall deposit the
19balance of the amount received into the trust fund established
20outside the State Treasury under subsection (g) of Section 13
21of the Metropolitan Pier and Exposition Authority Act.
22    Nothing in this Section shall be construed to authorize the
23Authority to impose a tax upon the privilege of engaging in any
24business which under the constitution of the United States may
25not be made the subject of taxation by this State.
26    An ordinance or resolution imposing or discontinuing a tax

 

 

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1hereunder or effecting a change in the rate thereof shall be
2effective on the first day of the second calendar month next
3following the month in which the ordinance or resolution is
4passed.
5    If the Authority levies a tax authorized by this Section it
6shall transmit to the Department of Revenue not later than 5
7days after the adoption of the ordinance or resolution a
8certified copy of the ordinance or resolution imposing such tax
9whereupon the Department of Revenue shall proceed to administer
10and enforce this Section on behalf of the Authority. Upon a
11change in rate of a tax levied hereunder, or upon the
12discontinuance of the tax, the Authority shall not later than 5
13days after the effective date of the ordinance or resolution
14discontinuing the tax or effecting a change in rate transmit to
15the Department of Revenue a certified copy of the ordinance or
16resolution effecting such change or discontinuance.
17    Notwithstanding any other provision of law, the tax is not
18imposed on the renting, leasing, or letting of hotel rooms to
19the American Red Cross for the provision or coordination of
20disaster relief services. This exemption for the renting,
21leasing, or letting of hotel rooms to the American Red Cross
22shall not apply except during the provision or coordination of
23disaster relief services.
24(Source: P.A. 91-935, eff. 6-1-01.)
 
25    Section 30. The Downstate Illinois Sports Facilities

 

 

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1Authority Act is amended by changing Section 105 as follows:
 
2    (70 ILCS 3210/105)
3    Sec. 105. Tax. The Authority may impose an occupation tax
4upon all persons engaged in the business of renting, leasing,
5or letting rooms in a hotel, as defined in the Hotel Operators'
6Occupation Tax Act, at a rate not to exceed 2% of the gross
7rental receipts from the renting, leasing or letting of hotel
8rooms. The taxing may be imposed, however, only if approved by
9ordinance of the municipality within which the tax is to be
10imposed.
11    The tax imposed by the Authority pursuant to this Section
12and all civil penalties that may be assessed as an incident
13thereof shall be collected and enforced by the State Department
14of Revenue. The certificate of registration which is issued by
15the Department to a lessor under the Hotel Operators'
16Occupation Tax Act shall permit such registrant to engage in a
17business which is taxable under any ordinance or resolution
18enacted pursuant to this Section without registering
19separately with the Department under such ordinance or
20resolution or under this Section. The Department shall have
21full power to administer and enforce this Section; to collect
22all taxes and penalties due hereunder; to dispose of taxes and
23penalties so collected in the manner provided in this Section,
24and to determine all rights to credit memoranda, arising on
25account of the erroneous payment of tax or penalty hereunder.

 

 

HB2773- 67 -LRB101 04939 TAE 49948 b

1In the administration of, and compliance with, this Section,
2the Department and persons who are subject to this Section
3shall have the same rights, remedies, privileges, immunities,
4powers and duties, and be subject to the same conditions,
5restrictions, limitations, penalties and definitions of terms,
6and employ the same modes of procedure, as are prescribed in
7the Hotel Operators' Occupation Tax Act (except where that Act
8is inconsistent herewith), as the same is now or may hereafter
9be amended, as fully as if the provisions contained in the
10Hotel Operators' Occupation Tax Act were set forth herein.
11    Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the warrant to be drawn for the
15amount specified, and to the person named, in such notification
16from the Department. Such refund shall be paid by the State
17Treasurer out of the amounts held by the State Treasurer as
18trustee for the Authority.
19    Persons subject to any tax imposed pursuant to authority
20granted by this Section may reimburse themselves for their tax
21liability for such tax by separately stating such tax as an
22additional charge, which charge may be stated in combination,
23in a single amount, with State tax imposed under the Hotel
24Operators' Occupation Tax Act.
25    The Department shall forthwith pay over to the State
26Treasurer, ex-officio, as trustee for the Authority, all taxes

 

 

HB2773- 68 -LRB101 04939 TAE 49948 b

1and penalties collected hereunder for deposit in a trust fund
2outside the State Treasury. On or before the 25th day of each
3calendar month, the Department shall certify to the Comptroller
4the amount to be paid to or on behalf of the Authority from
5amounts collected hereunder by the Department, and deposited
6into such trust fund during the second preceding calendar
7month. The amount to be paid to or on behalf of the Authority
8shall be the amount (not including credit memoranda) collected
9hereunder during such second preceding calendar month by the
10Department, less an amount equal to the amount of refunds
11authorized during such second preceding calendar month by the
12Department on behalf of the Authority, and less 4% of such
13balance, which sum shall be retained by the State Treasurer to
14cover the costs incurred by the Department in administering and
15enforcing the provisions of this Section, as provided herein.
16Each such monthly certification by the Department shall also
17certify to the Comptroller the amount to be so retained by the
18State Treasurer for payment into the General Revenue Fund of
19the State Treasury.
20    Amounts collected by the Department and paid to the
21Authority pursuant to this Section shall be used for the
22corporate purposes of the Authority.
23    Nothing in this Section shall be construed to authorize the
24Authority 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.

 

 

HB2773- 69 -LRB101 04939 TAE 49948 b

1    An ordinance or resolution imposing or discontinuing a tax
2hereunder or effecting a change in the rate thereof shall be
3effective on the first day of the second calendar month next
4following the month in which the ordinance or resolution is
5passed.
6    If the Authority levies a tax authorized by this Section it
7shall transmit to the Department of Revenue not later than 5
8days after the adoption of the ordinance or resolution a
9certified copy of the ordinance or resolution imposing such tax
10whereupon the Department of Revenue shall proceed to administer
11and enforce this Section on behalf of the Authority. Upon a
12change in rate of a tax levied hereunder, or upon the
13discontinuance of the tax, the Authority shall not later than 5
14days after the effective date of the ordinance or resolution
15discontinuing the tax or effecting a change in rate transmit to
16the Department of Revenue a certified copy of the ordinance or
17resolution effecting such change or discontinuance.
18    Notwithstanding any other provision of law, the tax is not
19imposed on the renting, leasing, or letting of hotel rooms to
20the American Red Cross for the provision or coordination of
21disaster relief services. This exemption for the renting or
22leasing of hotel rooms to the American Red Cross shall not
23apply except during the provision or coordination of disaster
24relief services.
25(Source: P.A. 93-227, eff. 1-1-04.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

HB2773- 70 -LRB101 04939 TAE 49948 b

1becoming law.