101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2918

 

Introduced , by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 145/3  from Ch. 120, par. 481b.33
35 ILCS 145/6  from Ch. 120, par. 481b.36
30 ILCS 105/5.891 new

    Amends the Hotel Operators' Occupation Tax Act. Provides that an additional tax shall be imposed at the rate of 1% of 94% of the gross rental receipts from the renting, leasing, or letting of hotel rooms. Provides that the proceeds from the additional tax shall be deposited into the Illinois Experience Fund. Provides that moneys in the Illinois Experience Fund shall be used to create, enhance, and promote artistic and cultural events and expositions in the State. Amends the State Finance Act to create the Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2918LRB101 09921 HLH 55023 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 Sections 3 and 6 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    (b-5) Beginning on July 1, 2019, there shall be imposed an
2additional tax upon persons engaged in the business of renting,
3leasing, or letting rooms in a hotel at the rate of 1% of 94% of
4the gross rental receipts from such renting, leasing, or
5letting, excluding, however, from gross rental receipts, the
6proceeds of such renting, leasing, or letting to permanent
7residents of that hotel and proceeds from the tax imposed under
8subsection (c) of Section 13 of the Metropolitan Pier and
9Exposition Authority Act.
10    (c) No funds received pursuant to this Act shall be used to
11advertise for or otherwise promote new competition in the hotel
12business.
13    (d) However, such tax is not imposed upon the privilege of
14engaging in any business in Interstate Commerce or otherwise,
15which business may not, under the Constitution and Statutes of
16the United States, be made the subject of taxation by this
17State. In addition, the tax is not imposed upon gross rental
18receipts for which the hotel operator is prohibited from
19obtaining reimbursement for the tax from the customer by reason
20of a federal treaty.
21    (d-5) On and after July 1, 2017, the tax imposed by this
22Act shall not apply to gross rental receipts received by an
23entity that is organized and operated exclusively for religious
24purposes and possesses an active Exemption Identification
25Number issued by the Department pursuant to the Retailers'
26Occupation Tax Act when acting as a hotel operator renting,

 

 

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1leasing, or letting rooms:
2        (1) in furtherance of the purposes for which it is
3    organized; or
4        (2) to entities that (i) are organized and operated
5    exclusively for religious purposes, (ii) possess an active
6    Exemption Identification Number issued by the Department
7    pursuant to the Retailers' Occupation Tax Act, and (iii)
8    rent the rooms in furtherance of the purposes for which
9    they are organized.
10    No gross rental receipts are exempt under paragraph (2) of
11this subsection (d-5) unless the hotel operator obtains the
12active Exemption Identification Number from the exclusively
13religious entity to whom it is renting and maintains that
14number in its books and records. Gross rental receipts from all
15rentals other than those described in items (1) or (2) of this
16subsection (d-5) are subject to the tax imposed by this Act
17unless otherwise exempt under this Act.
18    This subsection (d-5) is exempt from the sunset provisions
19of Section 3-5 of this Act.
20    (e) Persons subject to the tax imposed by this Act may
21reimburse themselves for their tax liability under this Act by
22separately stating such tax as an additional charge, which
23charge may be stated in combination, in a single amount, with
24any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
25Illinois Municipal Code, and Section 25.05-10 of "An Act to
26revise the law in relation to counties".

 

 

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1    (f) If any hotel operator collects an amount (however
2designated) which purports to reimburse such operator for hotel
3operators' occupation tax liability measured by receipts which
4are not subject to hotel operators' occupation tax, or if any
5hotel operator, in collecting an amount (however designated)
6which purports to reimburse such operator for hotel operators'
7occupation tax liability measured by receipts which are subject
8to tax under this Act, collects more from the customer than the
9operators' hotel operators' occupation tax liability in the
10transaction is, the customer shall have a legal right to claim
11a refund of such amount from such operator. However, if such
12amount is not refunded to the customer for any reason, the
13hotel operator is liable to pay such amount to the Department.
14(Source: P.A. 100-213, eff. 8-18-17.)
 
15    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
16    Sec. 6. Filing of returns and distribution of proceeds.
17    Except as provided hereinafter in this Section, on or
18before the last day of each calendar month, every person
19engaged in the business of renting, leasing or letting rooms in
20a hotel in this State during the preceding calendar month shall
21file a return with the Department, stating:
22        1. The name of the operator;
23        2. His residence address and the address of his
24    principal place of business and the address of the
25    principal place of business (if that is a different

 

 

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1    address) from which he engages in the business of renting,
2    leasing or letting rooms in a hotel in this State;
3        3. Total amount of rental receipts received by him
4    during the preceding calendar month from renting, leasing
5    or letting rooms during such preceding calendar month;
6        4. Total amount of rental receipts received by him
7    during the preceding calendar month from renting, leasing
8    or letting rooms to permanent residents during such
9    preceding calendar month;
10        5. Total amount of other exclusions from gross rental
11    receipts allowed by this Act;
12        6. Gross rental receipts which were received by him
13    during the preceding calendar month and upon the basis of
14    which the tax is imposed;
15        7. The amount of tax due;
16        8. Such other reasonable information as the Department
17    may require.
18    If the operator's average monthly tax liability to the
19Department does not exceed $200, the Department may authorize
20his returns to be filed on a quarter annual basis, with the
21return for January, February and March of a given year being
22due by April 30 of such year; with the return for April, May
23and June of a given year being due by July 31 of such year; with
24the return for July, August and September of a given year being
25due by October 31 of such year, and with the return for
26October, November and December of a given year being due by

 

 

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1January 31 of the following year.
2    If the operator's average monthly tax liability to the
3Department does not exceed $50, the Department may authorize
4his returns to be filed on an annual basis, with the return for
5a given year being due by January 31 of the following year.
6    Such quarter annual and annual returns, as to form and
7substance, shall be subject to the same requirements as monthly
8returns.
9    Notwithstanding any other provision in this Act concerning
10the time within which an operator may file his return, in the
11case of any operator who ceases to engage in a kind of business
12which makes him responsible for filing returns under this Act,
13such operator shall file a final return under this Act with the
14Department not more than 1 month after discontinuing such
15business.
16    Where the same person has more than 1 business registered
17with the Department under separate registrations under this
18Act, such person shall not file each return that is due as a
19single return covering all such registered businesses, but
20shall file separate returns for each such registered business.
21    In his return, the operator shall determine the value of
22any consideration other than money received by him in
23connection with the renting, leasing or letting of rooms in the
24course of his business and he shall include such value in his
25return. Such determination shall be subject to review and
26revision by the Department in the manner hereinafter provided

 

 

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1for the correction of returns.
2    Where the operator is a corporation, the return filed on
3behalf of such corporation shall be signed by the president,
4vice-president, secretary or treasurer or by the properly
5accredited agent of such corporation.
6    The person filing the return herein provided for shall, at
7the time of filing such return, pay to the Department the
8amount of tax herein imposed. The operator filing the return
9under this Section shall, at the time of filing such return,
10pay to the Department the amount of tax imposed by this Act
11less a discount of 2.1% or $25 per calendar year, whichever is
12greater, which is allowed to reimburse the operator for the
13expenses incurred in keeping records, preparing and filing
14returns, remitting the tax and supplying data to the Department
15on request.
16    If any payment provided for in this Section exceeds the
17operator's liabilities under this Act, as shown on an original
18return, the Department may authorize the operator to credit
19such excess payment against liability subsequently to be
20remitted to the Department under this Act, in accordance with
21reasonable rules adopted by the Department. If the Department
22subsequently determines that all or any part of the credit
23taken was not actually due to the operator, the operator's
24discount shall be reduced by an amount equal to the difference
25between the discount as applied to the credit taken and that
26actually due, and that operator shall be liable for penalties

 

 

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1and interest on such difference.
2    Beginning on July 1, 2019, the additional tax imposed by
3subsection (b-5) of Section 3 shall be deposited into the
4Illinois Experience Fund, a special fund created in the State
5treasury. Moneys in the Illinois Experience Fund shall be used
6to create, enhance, and promote artistic and cultural events
7and expositions in the State.
8    There shall be deposited in the Build Illinois Fund in the
9State Treasury for each State fiscal year 40% of the amount of
10total net proceeds from the tax imposed by subsection (a) of
11Section 3. Of the remaining 60%, $5,000,000 shall be deposited
12in the Illinois Sports Facilities Fund and credited to the
13Subsidy Account each fiscal year by making monthly deposits in
14the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
15such deposits for prior months, and an additional $8,000,000
16shall be deposited in the Illinois Sports Facilities Fund and
17credited to the Advance Account each fiscal year by making
18monthly deposits in the amount of 1/8 of $8,000,000 plus any
19cumulative deficiencies in such deposits for prior months;
20provided, that for fiscal years ending after June 30, 2001, the
21amount to be so deposited into the Illinois Sports Facilities
22Fund and credited to the Advance Account each fiscal year shall
23be increased from $8,000,000 to the then applicable Advance
24Amount and the required monthly deposits beginning with July
252001 shall be in the amount of 1/8 of the then applicable
26Advance Amount plus any cumulative deficiencies in those

 

 

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1deposits for prior months. (The deposits of the additional
2$8,000,000 or the then applicable Advance Amount, as
3applicable, during each fiscal year shall be treated as
4advances of funds to the Illinois Sports Facilities Authority
5for its corporate purposes to the extent paid to the Authority
6or its trustee and shall be repaid into the General Revenue
7Fund in the State Treasury by the State Treasurer on behalf of
8the Authority pursuant to Section 19 of the Illinois Sports
9Facilities Authority Act, as amended. If in any fiscal year the
10full amount of the then applicable Advance Amount is not repaid
11into the General Revenue Fund, then the deficiency shall be
12paid from the amount in the Local Government Distributive Fund
13that would otherwise be allocated to the City of Chicago under
14the State Revenue Sharing Act.)
15    For purposes of the foregoing paragraph, the term "Advance
16Amount" means, for fiscal year 2002, $22,179,000, and for
17subsequent fiscal years through fiscal year 2032, 105.615% of
18the Advance Amount for the immediately preceding fiscal year,
19rounded up to the nearest $1,000.
20    Of the remaining 60% of the amount of total net proceeds
21prior to August 1, 2011 from the tax imposed by subsection (a)
22of Section 3 after all required deposits in the Illinois Sports
23Facilities Fund, the amount equal to 8% of the net revenue
24realized from this Act plus an amount equal to 8% of the net
25revenue realized from any tax imposed under Section 4.05 of the
26Chicago World's Fair-1992 Authority Act during the preceding

 

 

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1month shall be deposited in the Local Tourism Fund each month
2for purposes authorized by Section 605-705 of the Department of
3Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
4the remaining 60% of the amount of total net proceeds beginning
5on August 1, 2011 from the tax imposed by subsection (a) of
6Section 3 after all required deposits in the Illinois Sports
7Facilities Fund, an amount equal to 8% of the net revenue
8realized from this Act plus an amount equal to 8% of the net
9revenue realized from any tax imposed under Section 4.05 of the
10Chicago World's Fair-1992 Authority Act during the preceding
11month shall be deposited as follows: 18% of such amount shall
12be deposited into the Chicago Travel Industry Promotion Fund
13for the purposes described in subsection (n) of Section 5 of
14the Metropolitan Pier and Exposition Authority Act and the
15remaining 82% of such amount shall be deposited into the Local
16Tourism Fund each month for purposes authorized by Section
17605-705 of the Department of Commerce and Economic Opportunity
18Law. Beginning on August 1, 1999 and ending on July 31, 2011,
19an amount equal to 4.5% of the net revenue realized from the
20Hotel Operators' Occupation Tax Act during the preceding month
21shall be deposited into the International Tourism Fund for the
22purposes authorized in Section 605-707 of the Department of
23Commerce and Economic Opportunity Law. Beginning on August 1,
242011, an amount equal to 4.5% of the net revenue realized from
25this Act during the preceding month shall be deposited as
26follows: 55% of such amount shall be deposited into the Chicago

 

 

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1Travel Industry Promotion Fund for the purposes described in
2subsection (n) of Section 5 of the Metropolitan Pier and
3Exposition Authority Act and the remaining 45% of such amount
4deposited into the International Tourism Fund for the purposes
5authorized in Section 605-707 of the Department of Commerce and
6Economic Opportunity Law. "Net revenue realized for a month"
7means the revenue collected by the State under that Act during
8the previous month less the amount paid out during that same
9month as refunds to taxpayers for overpayment of liability
10under that Act.
11    After making all these deposits, all other proceeds of the
12tax imposed under subsection (a) of Section 3 shall be
13deposited in the Tourism Promotion Fund in the State Treasury.
14All moneys received by the Department from the additional tax
15imposed under subsection (b) of Section 3 shall be deposited
16into the Build Illinois Fund in the State Treasury.
17    The Department may, upon separate written notice to a
18taxpayer, require the taxpayer to prepare and file with the
19Department on a form prescribed by the Department within not
20less than 60 days after receipt of the notice an annual
21information return for the tax year specified in the notice.
22Such annual return to the Department shall include a statement
23of gross receipts as shown by the operator's last State income
24tax return. If the total receipts of the business as reported
25in the State income tax return do not agree with the gross
26receipts reported to the Department for the same period, the

 

 

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1operator shall attach to his annual information return a
2schedule showing a reconciliation of the 2 amounts and the
3reasons for the difference. The operator's annual information
4return to the Department shall also disclose pay roll
5information of the operator's business during the year covered
6by such return and any additional reasonable information which
7the Department deems would be helpful in determining the
8accuracy of the monthly, quarterly or annual tax returns by
9such operator as hereinbefore provided for in this Section.
10    If the annual information return required by this Section
11is not filed when and as required the taxpayer shall be liable
12for a penalty in an amount determined in accordance with
13Section 3-4 of the Uniform Penalty and Interest Act until such
14return is filed as required, the penalty to be assessed and
15collected in the same manner as any other penalty provided for
16in this Act.
17    The chief executive officer, proprietor, owner or highest
18ranking manager shall sign the annual return to certify the
19accuracy of the information contained therein. Any person who
20willfully signs the annual return containing false or
21inaccurate information shall be guilty of perjury and punished
22accordingly. The annual return form prescribed by the
23Department shall include a warning that the person signing the
24return may be liable for perjury.
25    The foregoing portion of this Section concerning the filing
26of an annual information return shall not apply to an operator

 

 

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1who is not required to file an income tax return with the
2United States Government.
3(Source: P.A. 100-23, eff. 7-6-17; 100-1171, eff. 1-4-19.)
 
4    Section 90. The State Finance Act is amended by adding
5Section 5.891 as follows:
 
6    (30 ILCS 105/5.891 new)
7    Sec. 5.891. The Illinois Experience Fund.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.