102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1746

 

Introduced 2/26/2021, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 145/2  from Ch. 120, par. 481b.32
35 ILCS 145/3  from Ch. 120, par. 481b.33
35 ILCS 145/3-2 new
35 ILCS 145/3-3 new
35 ILCS 145/4  from Ch. 120, par. 481b.34
35 ILCS 145/5  from Ch. 120, par. 481b.35
35 ILCS 145/6  from Ch. 120, par. 481b.36
65 ILCS 5/8-3-13  from Ch. 24, par. 8-3-13
65 ILCS 5/8-3-14  from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a
55 ILCS 5/5-1030  from Ch. 34, par. 5-1030

    Creates the Short-Term Rental Operators' Occupation Tax Act. Imposes a tax upon persons engaged in the business of short-term rental at the rate of 5% of 94% of the gross rental receipts from such renting, leasing or letting. Imposes an additional tax at the rate of 1% of 94% of the gross rental receipts from such renting, leasing or letting. Provides that operators of short-term rentals shall obtain a business license from the Department of Revenue. Provides that receipts that are subject to tax under the Hotel Operators' Occupation Tax Act are not subject to tax under the Short-Term Rental Operators' Occupation Tax Act. Amends the Hotel Operators' Occupation Tax Act. Provides that re-renters of hotel rooms who meet certain criteria related to gross receipts or number of transactions are required to collect and remit the tax under the Act. Provides that a "re-renter" is a person who obtains from a hotel operator the right or authority to control the access to, or occupancy of, a hotel room located in this State and who resells the right to occupy that room. Effective October 1, 2021.


LRB102 16057 HLH 21429 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1746LRB102 16057 HLH 21429 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 1. Short title. This Act may be cited as the
5Short-Term Rental Operators' Occupation Tax Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Booking transaction" means a transaction in which a
8hosting platform collects or receives compensation for
9facilitating a rental of a short-term rental located in this
10State by directly or indirectly allowing a reservation to be
11made for an occupant or collecting or processing payments
12through the hosting platform's application, software, website,
13or system.
14    "Department" means the Department of Revenue.
15    "Hosting platform" means a person who provides an
16application, software, website, or other online, offline, or
17in-person system through which a short-term rental located in
18this State is advertised or held out to the public as available
19to rent for occupancy.
20    "Operator" means any person operating a short-term rental.
21    "Occupancy" means the use or possession, or the right to
22the use or possession, of any room or rooms in a short-term
23rental for any purpose, or the right to the use or possession

 

 

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1of the furnishings or to the services and accommodations
2accompanying the use and possession of the room or rooms, by an
3occupant.
4    "Permanent resident" means any person who occupied or has
5the right to occupy any room or rooms, regardless of whether or
6not it is the same room or rooms, in a short-term rental for at
7least 30 consecutive days.
8    "Person" means any natural individual, firm, partnership,
9association, joint stock company, joint adventure, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian or other representative appointed
12by order of any court.
13    "Rent" or "rental" means the consideration received for an
14occupant's occupancy, valued in money, whether received in
15money or otherwise, including all receipts, cash, credits and
16property or services of any kind or nature.
17    "Room" or "rooms" means any living quarters, sleeping or
18housekeeping accommodations.
19    "Short-term rental" means an owner-occupied,
20tenant-occupied, or non-owner-occupied dwelling including, but
21not limited to, an apartment, house, cottage, condominium, or
22furnished accommodation that is not a hotel as defined in the
23Hotel Operators' Occupation Tax Act, where: (i) at least one
24room in the dwelling is rented to an occupant for a period of
25less than 30 consecutive days; and (ii) all accommodations are
26reserved in advance; provided, however, that a dwelling shall

 

 

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1be considered a single room if rented as such. This definition
2does not include:
3        (1) any dormitory or other living or sleeping facility
4    maintained by a public or private school, college, or
5    university for the use of students, faculty, or visitors.
6        (2) any facility certified or licensed and regulated
7    by the Department of Human Services or Department of
8    Public Health;
9        (3) any room in a condominium, cooperative, or
10    timeshare plan and any individually or collectively owned
11    single-family or multi-family dwelling house or room in
12    such dwelling that is rented for a period of at least 30
13    consecutive days and that is not advertised or held out to
14    the public as a place regularly rented for periods of less
15    than 30 consecutive days;
16        (4) any migrant labor camp or residential migrant
17    housing permitted by the Department of Public Health;
18        (5) any nonprofit organization that operates a
19    facility providing housing only to patients, patients'
20    families, and patients' caregivers and not to the general
21    public; or
22        (6) any apartment building inspected by the United
23    States Department of Housing and Urban Development or
24    other entity acting on behalf of the United States
25    Department of Housing and Urban Development that is
26    designated primarily as housing for persons at least 62

 

 

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1    years of age. The Department may require the operator of
2    the apartment building to attest in writing that such
3    building meets the criteria provided in this subparagraph.
4    The Department may adopt rules to implement this
5    requirement.
 
6    Section 10. Rate; exemptions.
7    (a) A tax is imposed upon short-term rental operators at
8the rate of 5% of 94% of the gross rental receipts from such
9renting, leasing, or letting.
10    (b) There shall be imposed an additional tax upon
11short-term rental operators at the rate of 1% of 94% of the
12gross rental receipts from such renting, leasing, or letting.
13    (c) The tax is not imposed upon the privilege of engaging
14in any business in Interstate Commerce or otherwise, which
15business may not, under the Constitution and statutes of the
16United States, be made the subject of taxation by this State.
17In addition, the tax is not imposed upon gross rental receipts
18for which the short-term rental operator is prohibited from
19obtaining reimbursement for the tax from the customer by
20reason of a federal treaty.
21    (d) The tax imposed by this Act shall not apply to gross
22rental receipts received by an entity that is organized and
23operated exclusively for religious purposes and possesses an
24active Exemption Identification Number issued by the
25Department pursuant to the Retailers' Occupation Tax Act when

 

 

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1acting as a short-term rental operator renting, leasing, or
2letting rooms as follows:
3        (1) in furtherance of the purposes for which it is
4    organized; or
5        (2) to entities that (i) are organized and operated
6    exclusively for religious purposes, (ii) possess an active
7    Exemption Identification Number issued by the Department
8    pursuant to the Retailers' Occupation Tax Act, and (iii)
9    rent the rooms in furtherance of the purposes for which
10    they are organized.
11    No gross rental receipts are exempt under paragraph (2) of
12this subsection unless the short-term rental operator obtains
13the active Exemption Identification Number from the
14exclusively religious entity to whom it is renting and
15maintains that number in its books and records. Gross rental
16receipts from all rentals other than those described in items
17(1) or (2) of this subsection are subject to the tax imposed by
18this Act unless otherwise exempt under this Act.
19    (e) Persons subject to the tax imposed by this Act may
20reimburse themselves for their tax liability under this Act by
21separately stating such tax as an additional charge, which
22charge may be stated in combination, in a single amount, with
23any tax imposed by any unit of local government.
24    (f) If any short-term rental operator or a hosting
25platform acting as an agent collects an amount (however
26designated) which purports to reimburse such operator for

 

 

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1short-term rental operators' occupation tax liability measured
2by receipts which are not subject to short-term rental
3operators' occupation tax, or if any short-term rental
4operator or a hosting platform acting as an agent, in
5collecting an amount (however designated) which purports to
6reimburse such operator for short-term rental operators'
7occupation tax liability measured by receipts which are
8subject to tax under this Act, collects more from the customer
9than the operators' short-term rental operators' occupation
10tax liability in the transaction is, the customer shall have a
11legal right to claim a refund of such amount from such operator
12or hosting platform. However, if such amount is not refunded
13to the customer for any reason, the short-term rental operator
14or hosting platform is liable to pay such amount to the
15Department.
16    (g) The tax imposed under this Act shall be in addition to
17all other occupation or privilege taxes imposed by the State
18of Illinois or by any municipal corporation or political
19subdivision thereof, except that any rental receipts subject
20to tax under the Hotel Operators' Occupation Tax Act shall not
21be subject to the tax imposed under this Section.
 
22    Section 15. Hosting platform collection and remittance of
23taxes.
24    (a) Any hosting platform that facilitates a booking
25transaction shall be required to act as the relevant

 

 

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1short-term rental operator's agent and: (i) assess, collect,
2report, and remit the tax to the appropriate taxing body; (ii)
3maintain records of any taxes collected that have been
4remitted to the appropriate taxing body and submit these
5records to the Department in accordance with this Act; and
6(iii) notify the short-term rental operator that the operator
7must comply with all applicable local, State, and federal
8laws, regulations, and ordinances, including this Act.
9    (b) A hosting platform that facilitates a booking
10transaction shall provide notification within a reasonable
11time to the relevant short-term rental operator that the tax
12has been collected and remitted to the appropriate taxing
13body. The notification must be delivered in hand, by mail, or
14conveyed electronically by electronic message, mobile or smart
15phone application, or another similar electronic process,
16digital media, or communication portal. A short-term rental
17operator shall not be responsible for collecting and remitting
18taxes for which the operator has received notification from a
19hosting platform that the excise has been collected and
20remitted to the taxing body on their behalf.
21    (c) A hosting platform acting as an agent of a short-term
22rental operator in accordance with subsection (a) shall
23provide notification to the Department in a manner prescribed
24by the Department.
 
25    Section 20. Hosting Platforms.

 

 

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1    (a) It is unlawful for any hosting platform to facilitate
2a booking transaction for a short-term rental located in this
3State unless the hosting platform:
4        (1) is first registered with the Department in
5    accordance with subsection (d); and
6        (2) as a condition of registration with the
7    Department, has obtained written consent from all
8    operators with short-term rentals located in this State
9    who intend to short-term rent such dwelling or room within
10    such dwelling through the platform, for the disclosure of
11    the information required under, and the furnishing of such
12    information in accordance with, Section 25 of this Act.
13    (b) It is unlawful for any hosting platform to facilitate
14a booking transaction for a short-term rental located in this
15State if the dwelling or room within the dwelling is not
16lawfully registered, licensed, permitted, or otherwise allowed
17as a short-term rental pursuant to an applicable local, State,
18or federal law, regulation, or ordinance, including this Act,
19at the time it is rented.
20    (c) A hosting platform shall designate and maintain on
21file with the Department an agent for service of process in
22this State.
23    (d) The Department may issue a certificate of registration
24to each hosting platform that meets the requirements of this
25Act and the rules for hosting platform registration adopted
26thereunder by the Department.
 

 

 

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1    Section 25. Records and reporting.
2    (a) Notwithstanding any other provision of law or
3Department action to the contrary:
4        (1) Every operator shall keep separate books or
5    records of the operator's business so as to show the rents
6    and occupancies taxable under this Act separately from the
7    operator's transactions not taxable under this Act. If any
8    operator fails to keep such separate books or records, the
9    operator shall be liable to remit the tax at the rate
10    designated in this Act upon the entire proceeds from the
11    short-term rental. The Department may adopt rules that
12    establish requirements, including record forms and
13    formats, for records required to be kept and maintained by
14    taxpayers. For purposes of this Section, "records" means
15    all data maintained by the taxpayer, including data on
16    paper, microfilm, microfiche or any type of
17    machine-sensible data compilation.
18        (2) In accordance with rules adopted by the Department
19    and subject to applicable laws, for all booking
20    transactions it facilitates for short-term rentals located
21    in this State a hosting platform shall develop and
22    maintain a report that must include all of the following
23    information about each short-term rental booking
24    transaction:
25            (A) the name of the operator;

 

 

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1            (B) the operator's or short-term rental's license,
2        registration, permit, or other number as applicable;
3            (C) the physical address;
4            (D) any room or dwelling designation;
5            (E) the individual periods of rental by calendar
6        date;
7            (F) the itemized amounts collected or processed by
8        the hosting platform for the rental, taxes, and all
9        other charges; and
10            (G) any additional information that the Department
11        may require by rule.
12    (b) The hosting platform shall submit the report to the
13Department monthly in the format requested by the Department
14and shall make the report available for audit by the
15Department upon request, as well as any underlying records
16requested by the Department. The Department may issue and
17serve subpoenas and compel the production of the report and
18underlying records as necessary to enforce hosting platform
19compliance with this Section. Such underlying records may not
20include copies of specific message exchanges between the
21hosting platform and an operator, short-term rental renter, or
22occupant, or between the operator and short-term rental renter
23or occupant.
24    (c) The hosting platform shall maintain the report and
25underlying records for at least 7 years, in accordance with
26any rules adopted by the Department.

 

 

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1    (d) The Department shall share the report, sections of the
2report, underlying records, or any combination of those items,
3with an agency or local government of this State to ensure
4compliance with this Act, the laws of this State, and any local
5laws, regulations or ordinances.
6    (e) The Department may use the report and underlying
7records for tax auditing purposes and local governments may
8use the reports and underlying records to ensure compliance
9with laws, ordinances, or regulations.
10    (f) A hosting platform may not facilitate a booking
11transaction for a rental of a short-term rental located in
12this State unless the operator consents to the hosting
13platform's disclosure of the information required by this
14Section.
15    (g) A hosting platform that has operated or is operating
16in violation of this Act, or the rules of the Department, shall
17be subject to fines up to $1,000 per offense and to suspension,
18revocation, or refusal of a registration issued pursuant to
19this Act. For purposes of this subsection, the Department may
20regard as a separate offense each transaction a hosting
21platform processes, or each day a hosting platform operates,
22in violation of this Act or the rules of the Department.
 
23    Section 30. State business licensing.
24    (a) Before an operator engages in the business of a
25short-term rental in this State, the operator shall obtain a

 

 

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1business license from the Department. In order to obtain a
2business license from the Department, the operator must first
3provide evidence to the Department that the short-term rental
4is lawfully registered, licensed, permitted, or otherwise
5allowed to operate as a short-term rental pursuant to the
6applicable local law, regulation, or ordinance.
7    (b) An operator's business license number issued by the
8Department must be displayed on any advertisement or listing
9of a short-term rental and be physically displayed within the
10short-term rental.
11    (c) If the Department notifies a hosting platform in
12writing that an advertisement or listing for a short-term
13rental in this state fails to display a valid business license
14number issued by the Department, the hosting platform must
15remove all advertisements or listings for that short-term
16rental from its online application, software, website, or
17system within 3 business days unless the listing is otherwise
18brought into compliance with the law.
19    (d) The Department shall revoke or refuse to issue or
20renew a short-term rental operator's business license when:
21(i) the Department determines that the operation of the
22subject short-term rental violates the terms of an applicable
23lease or property restriction; or (ii) the Department
24determines that the operation of the short-term rental
25violates a State, federal, or local law, ordinance, or
26regulation, or the short-term rental operator is the subject

 

 

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1of a final order or judgment lawfully directing the
2termination of the premises' use as a short-term rental.
 
3    Section 35. Filing of returns and distribution of
4proceeds.
5    Except as provided in this Section, on or before the last
6day of each calendar month, every operator or agent in this
7State shall file a return for the preceding calendar month
8with the Department, stating:
9        (1) the name of the operator;
10        (2) the operator's residence address and the address
11    of his principal place of business and the address of the
12    principal place of business (if that is a different
13    address) from which he engages in the business of renting,
14    leasing or letting rooms in a short-term rental in this
15    State;
16        (3) the total amount of rental receipts received by
17    the operator during the preceding calendar month from
18    renting, leasing or letting rooms during such preceding
19    calendar month;
20        (4) the total amount of rental receipts received by
21    the operator during the preceding calendar month from
22    renting, leasing or letting rooms to permanent residents
23    during such preceding calendar month;
24        (5) the total amount of other exclusions from gross
25    rental receipts allowed by this Act;

 

 

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1        (6) gross rental receipts which were received by the
2    operator during the preceding calendar month and upon the
3    basis of which the tax is imposed;
4        (7) the amount of tax due; and
5        (8) such other reasonable information as the
6    Department may require.
7    If the operator's average monthly tax liability to the
8Department does not exceed $200, the Department may authorize
9the operator's returns to be filed on a quarter annual basis,
10with the return for January, February, and March of a given
11year being due by April 30 of such year; with the return for
12April, May, and June of a given year being due by July 31 of
13such year; with the return for July, August, and September of a
14given year being due by October 31 of such year, and with the
15return for October, November, and December of a given year
16being due by January 31 of the following year.
17    If the operator's average monthly tax liability to the
18Department does not exceed $50, the Department may authorize
19the operator's returns to be filed on an annual basis, with the
20return for a given year being due by January 31 of the
21following year.
22    Such quarter annual and annual returns, as to form and
23substance, shall be subject to the same requirements as
24monthly returns.
25    Notwithstanding any other provision in this Act concerning
26the time within which an operator may file his return, in the

 

 

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1case of any operator who ceases to engage in a kind of business
2which makes the operator responsible for filing returns under
3this Act, such operator shall file a final return under this
4Act with the Department not more than 1 month after
5discontinuing such business.
6    Where the same person has more than one business
7registered with the Department under separate registrations
8under this Act, such person shall not file each return that is
9due as a single return covering all such registered
10businesses, but shall file separate returns for each such
11registered business.
12    In the operator's return, the operator shall determine the
13value of any consideration other than money received by him in
14connection with the renting, leasing, or letting of rooms in
15the course of his business, and the operator shall include
16such value in his return. Such determination shall be subject
17to review and revision by the Department in the manner
18provided in this Act for the correction of returns.
19    Where the operator is a corporation, the return filed on
20behalf of such corporation shall be signed by the president,
21vice-president, secretary or treasurer or by the properly
22accredited agent of such corporation.
23    The person filing the return shall, at the time of filing
24such return, pay to the Department the amount of tax herein
25imposed. The operator filing the return under this Section
26shall, at the time of filing such return, pay to the Department

 

 

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1the amount of tax imposed by this Act less a discount of 2.1%
2or $25 per calendar year, whichever is greater, which is
3allowed to reimburse the operator for the expenses incurred in
4keeping records, preparing and filing returns, remitting the
5tax and supplying data to the Department on request.
6    If any payment provided for in this Section exceeds the
7operator's liabilities under this Act, as shown on an original
8return, the Department may authorize the operator to credit
9such excess payment against liability subsequently to be
10remitted to the Department under this Act, in accordance with
11reasonable rules adopted by the Department. If the Department
12subsequently determines that all or any part of the credit
13taken was not actually due to the operator, the operator's
14discount shall be reduced by an amount equal to the difference
15between the discount as applied to the credit taken and that
16actually due, and that operator shall be liable for penalties
17and interest on such difference.
18    The proceeds collected from the tax under this Act shall
19be deposited into the same funds and in the same manner as
20proceeds are deposited under Section 6 of the Hotel Operators'
21Occupation Tax Act.
22    The Department may, upon separate written notice to a
23taxpayer, require the taxpayer to prepare and file with the
24Department on a form prescribed by the Department within not
25less than 60 days after receipt of the notice an annual
26information return for the tax year specified in the notice.

 

 

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

 

 

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1accordingly. The annual return form prescribed by the
2Department shall include a warning that the person signing the
3return may be liable for perjury.
4    The foregoing portion of this Section concerning the
5filing of an annual information return shall not apply to an
6operator who is not required to file an income tax return with
7the United States Government.
 
8    Section 40. Incorporation of Retailers' Occupation Tax Act
9and Uniform Penalty and Interest Act. All of the provisions of
10Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
116c, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act
12and Section 3-7 of the Uniform Penalty and Interest Act shall
13apply to persons in the business of renting, leasing or
14letting short-term rental rooms in this State to the same
15extent as if such provisions were included herein.
 
16    Section 45. Recordkeeping. When the amount due is under
17$300, any person engaged in the business of renting, leasing
18or letting short-term rental rooms in this State, who fails to
19make a return, or to keep books and records as required herein,
20or who makes a fraudulent return, or who willfully violates
21any rule or regulation of the Department for the
22administration and enforcement of the provisions of this Act,
23or any officer or agent of a corporation engaged in the
24business of renting, leasing or letting short-term rental

 

 

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1rooms in this State, who signs a fraudulent return made on
2behalf of such corporation, is guilty of a Class 4 felony.
3    Any person who violates any provision of this Act is
4guilty of a Class 4 felony. Each and every day any such person
5is engaged in business in violation of this Act shall
6constitute a separate offense.
7    When the amount due is under $300, any person who accepts
8money that is due to the Department under this Act from a
9taxpayer for the purpose of acting as the taxpayer's agent to
10make the payment to the Department, but who fails to remit such
11payment to the Department when due is guilty of a Class 4
12felony. Any such person who purports to make such payment by
13issuing or delivering a check or other order upon a real or
14fictitious depository for the payment of money, knowing that
15it will not be paid by the depository, shall be guilty of a
16deceptive practice in violation of Section 17-1 of the
17Criminal Code of 2012.
18    Any short-term rental operator who collects or attempts to
19collect an amount (however designated) which purports to
20reimburse such operator for a short-term rental operators'
21occupation tax liability measured by receipts which such
22operator knows are not subject to short-term rental operators'
23occupation tax, or any short-term rental operator who
24knowingly over-collects or attempts to over-collect an amount
25purporting to reimburse such operator for short-term
26operators' occupation tax liability in a transaction which is

 

 

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1subject to the tax that is imposed by this Act, shall be guilty
2of a Class 4 felony.
3    When the amount due is $300 or more, any person engaged in
4the business of renting, leasing or letting short-term rental
5rooms in this State, who fails to make a return, or to keep
6books and records as required herein, or who makes a
7fraudulent return, or who willfully violates any rule or
8regulation of the Department for the administration and
9enforcement of the provisions of this Act, or any officer or
10agent of a corporation engaged in the business of renting,
11leasing or letting short-term rental rooms in this State who
12signs a fraudulent return made on behalf of such corporation
13is guilty of a Class 3 felony.
14    When the amount due is $300 or more, any person who accepts
15money that is due to the Department under this Act from a
16taxpayer for the purpose of acting as the taxpayer's agent to
17make the payment to the Department, but who fails to remit such
18payment to the Department is guilty of a Class 3 felony. Any
19such person who purports to make such payment by issuing or
20delivering a check or other order upon a real or fictitious
21depository for the payment of money, knowing that it will not
22be paid by the depository, shall be guilty of a deceptive
23practice in violation of Section 17-1 of the Criminal Code of
242012.
25    A prosecution for any act in violation of this Section may
26be commenced at any time within 3 years of the commission of

 

 

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1that act.
 
2    Section 50. Intergovernmental sharing of information. Any
3information collected by the Department pursuant to this Act
4shall not be subject to the Freedom of Information Act.
5Information collected pursuant to this Act by the Department
6may be shared with local units of government upon request,
7provided that the information is treated as confidential at
8all times by the local unit of government.
 
9    Section 55. Local regulation. A unit of local government
10may adopt an ordinance or resolution regulating short-term
11rental activities within that unit of local government that
12imposes requirements not inconsistent with nor less stringent
13than those imposed by this Act.
 
14    Section 60. Severability. If any provision of this Act, in
15part or in full, or its application to any person, entity, or
16circumstance is held invalid, the invalidity does not affect
17other provisions or applications of the Act which can be given
18effect without the invalid provision or application, and to
19this end the provisions of this Act are severable.
 
20    Section 900. The Hotel Operators' Occupation Tax Act is
21amended by changing Sections 2, 3, 4, 5, and 6 and by adding
22Sections 3-2 and 3-3 as follows:
 

 

 

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1    (35 ILCS 145/2)  (from Ch. 120, par. 481b.32)
2    Sec. 2. Definitions. As used in this Act, unless the
3context otherwise requires:
4    (1) "Hotel" means any building or buildings in which the
5public may, for a consideration, obtain living quarters,
6sleeping or housekeeping accommodations. The term includes,
7but is not limited to, inns, motels, tourist homes or courts,
8lodging houses, rooming houses and apartment houses, retreat
9centers, conference centers, and hunting lodges.
10    (2) "Operator" means any person engaged in the business of
11renting, leasing, or letting rooms in operating a hotel.
12Operator also includes all re-renters of hotel rooms provided
13that the re-renters of hotel rooms meet either of the
14thresholds in subsection (a-5) of Section 3 of this Act.
15    (3) "Occupancy" means the use or possession, or the right
16to the use or possession, of any room or rooms in a hotel for
17any purpose, or the right to the use or possession of the
18furnishings or to the services and accommodations accompanying
19the use and possession of the room or rooms.
20    (4) "Room" or "rooms" means any living quarters, sleeping
21or housekeeping accommodations.
22    (5) "Permanent resident" means any person who occupied or
23has the right to occupy any room or rooms, regardless of
24whether or not it is the same room or rooms, in a hotel for at
25least 30 consecutive days.

 

 

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1    (6) "Rent" or "rental" means the consideration received
2for occupancy, valued in money, whether received in money or
3otherwise, including all receipts, cash, credits and property
4or services of any kind or nature."Rent" or "rental" includes
5any fee, charge, or commission received by a re-renter of
6hotel rooms in connection with the re-rental of hotel rooms.
7    (7) "Department" means the Department of Revenue.
8    (8) "Person" means any natural individual, firm,
9partnership, association, joint stock company, joint
10adventure, public or private corporation, limited liability
11company, or a receiver, executor, trustee, guardian or other
12representative appointed by order of any court.
13    (9) "Re-renter of hotel rooms" means a person who obtains
14from a hotel operator the right or authority to control the
15access to, or occupancy of, a hotel room located in this State
16and who resells the right to occupy that room.
17(Source: P.A. 100-213, eff. 8-18-17.)
 
18    (35 ILCS 145/3)  (from Ch. 120, par. 481b.33)
19    Sec. 3. Rate; exemptions.
20    (a) A tax is imposed upon hotel operators persons engaged
21in the business of renting, leasing or letting rooms in a hotel
22at the rate of 5% of 94% of the gross rental receipts from
23engaging in business as a hotel operator such renting, leasing
24or letting, excluding, however, from gross rental receipts,
25the proceeds of such renting, leasing or letting hotel rooms

 

 

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1to permanent residents of a that hotel and proceeds from the
2tax imposed under subsection (c) of Section 13 of the
3Metropolitan Pier and Exposition Authority Act.
4    (a-5) Beginning on January 1, 2022, a re-renter of hotel
5rooms who meets either of the following thresholds is
6considered the hotel operator for each rental in this State:
7        (1)the cumulative gross receipts from rentals in
8    Illinois by the re-renter of hotel rooms are $100,000 or
9    more; or
10        (2)the re-renter of hotel rooms cumulatively enters
11    into 200 or more separate transactions for rentals in
12    Illinois.
13    A re-renter of hotel rooms shall determine on a quarterly
14basis, ending on the last day of March, June, September, and
15December, whether he or she meets the threshold of either
16paragraph (1) or (2) of this subsection (a-5) for the
17preceding 12-month period. If the re-renter of hotel rooms
18meets the threshold of either paragraph (1) or (2) for a
1912-month period, he or she is subject to tax under this Act and
20is required to remit the tax imposed under this Act and file
21returns for the 12-month period beginning on the first day of
22the next month after he or she determines that he or she meets
23the threshold of paragraph (1) or (2). At the end of that
2412-month period, the re-renter of hotel rooms shall determine
25whether he or she continued to meet the threshold of either
26paragraph (1) or (2) during the preceding 12-month period. If

 

 

SB1746- 25 -LRB102 16057 HLH 21429 b

1he or she met the threshold in either paragraph (1) or (2) for
2the preceding 12-month period, he or she is considered a hotel
3operator in this State and is required to remit the tax imposed
4under this Act and file returns for the subsequent 12-month
5period. If, at the end of a 12-month period during which a
6re-renter is required to remit the tax imposed under this Act,
7the re-renter determines that he or she did not meet the
8threshold in either paragraph (1) or (2) during the preceding
912-month period, he or she shall subsequently determine on a
10quarterly basis, ending on the last day of March, June,
11September, and December, whether he or she meets the threshold
12of either paragraph (1) or (2) for the preceding 12-month
13period.
14    (b) There shall be imposed an additional tax upon hotel
15operators persons engaged in the business of renting, leasing
16or letting rooms in a hotel at the rate of 1% of 94% of the
17gross rental receipts from engaging in the business as a hotel
18operator such renting, leasing or letting, excluding, however,
19from gross rental receipts, the proceeds of such renting,
20leasing or letting to permanent residents of that hotel and
21proceeds from the tax imposed under subsection (c) of Section
2213 of the Metropolitan Pier and Exposition Authority Act.
23    (c) No funds received pursuant to this Act shall be used to
24advertise for or otherwise promote new competition in the
25hotel business.
26    (d) However, such tax is not imposed upon the privilege of

 

 

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

 

 

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1number in its books and records. Gross rental receipts from
2all rentals other than those described in items (1) or (2) of
3this subsection (d-5) are subject to the tax imposed by this
4Act unless otherwise exempt under this Act.
5    This subsection (d-5) is exempt from the sunset provisions
6of Section 3-5 of this Act.
7    (e) Persons subject to the tax imposed by this Act may
8reimburse themselves for their tax liability under this Act by
9separately stating such tax as an additional charge, which
10charge may be stated in combination, in a single amount, with
11any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
12Illinois Municipal Code, and Section 25.05-10 of "An Act to
13revise the law in relation to counties".
14    (f) If any hotel operator collects an amount (however
15designated) which purports to reimburse such operator for
16hotel operators' occupation tax liability measured by receipts
17which are not subject to hotel operators' occupation tax, or
18if any hotel operator, in collecting an amount (however
19designated) which purports to reimburse such operator for
20hotel operators' occupation tax liability measured by receipts
21which are subject to tax under this Act, collects more from the
22guest customer than the operators' hotel operators' occupation
23tax liability in the transaction is, the guest customer shall
24have a legal right to claim a refund of such amount from such
25operator. However, if such amount is not refunded to the guest
26customer for any reason, the hotel operator is liable to pay

 

 

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1such amount to the Department.
2(Source: P.A. 100-213, eff. 8-18-17.)
 
3    (35 ILCS 145/3-2 new)
4    Sec. 3-2. No resale exemption; tax incurred by re-renters
5of hotel rooms. A hotel operator who rents, leases, or lets
6rooms subject to tax under this Act to a re-renter of hotel
7rooms incurs the tax under this Act on the gross rental
8receipts it receives from that re-renter of hotel rooms and
9cannot claim any resale exemption. In such situations, the
10re-renter of hotel rooms incurs tax under this Act on its gross
11rental receipts as provided in Section 3 of this Act.
 
12    (35 ILCS 145/3-3 new)
13    Sec. 3-3. Re-renter of hotel rooms; credit for tax
14reimbursement. A re-renter of hotel rooms may take a credit
15against the tax it incurs on the rental of a hotel room under
16this Act for the amount it paid under subsection (f) of Section
173 of this Act to a hotel operator as reimbursement for the tax
18incurred under this Act for the rental of that room for the
19purposes of re-rental.
 
20    (35 ILCS 145/4)  (from Ch. 120, par. 481b.34)
21    Sec. 4. Books and records. Every operator shall keep
22separate books or records of his business as an operator so as
23to show the rents and occupancies taxable under this Act

 

 

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1separately from his transactions not taxable under this Act.
2If any operator fails to keep such separate books or records,
3he shall be liable to tax at the rate designated in Section 3
4hereof upon the entire proceeds from his business hotel. The
5Department may adopt rules that establish requirements,
6including record forms and formats, for records required to be
7kept and maintained by taxpayers. For purposes of this
8Section, "records" means all data maintained by the taxpayer,
9including data on paper, microfilm, microfiche or any type of
10machine-sensible data compilation.
11(Source: P.A. 88-480.)
 
12    (35 ILCS 145/5)  (from Ch. 120, par. 481b.35)
13    Sec. 5. Certificate of registration; retailers' occupation
14tax registration provisions apply. It shall be unlawful for
15any person to engage in the business as a hotel operator of
16renting, leasing or letting rooms in a hotel in this State
17without a certificate of registration from the Department.
18    All of the provisions of Sections 2a and 2b of the
19Retailers' Occupation Tax Act, in effect on the effective date
20of this Act, as subsequently amended, shall apply to persons
21in the business as hotel operators of renting, leasing or
22letting rooms in a hotel in this State, to the same extent as
23if such provisions were included herein.
24(Source: Laws 1961, p. 1728.)
 

 

 

SB1746- 30 -LRB102 16057 HLH 21429 b

1    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
2    Sec. 6. Returns; allocation of proceeds Filing of returns
3and distribution of proceeds.
4    Except as provided hereinafter in this Section, on or
5before the last day of each calendar month, every person
6engaged as a hotel operator in the business of renting,
7leasing or letting rooms in a hotel in this State during the
8preceding calendar month shall file a return with the
9Department, stating:
10        1. The name of the operator;
11        2. His residence address and the address of his
12    principal place of business and the address of the
13    principal place of business (if that is a different
14    address) from which he engages in the business as a hotel
15    operator of renting, leasing or letting rooms in a hotel
16    in this State (including, if required by the Department,
17    the address of each hotel from which rental receipts were
18    received);
19        3. Total amount of rental receipts received by him
20    during the preceding calendar month from engaging in
21    business as a hotel operator renting, leasing or letting
22    rooms during such preceding calendar month;
23        4. Total amount of rental receipts received by him
24    during the preceding calendar month from renting, leasing
25    or letting rooms to permanent residents during such
26    preceding calendar month;

 

 

SB1746- 31 -LRB102 16057 HLH 21429 b

1        5. Total amount of other exclusions from gross rental
2    receipts allowed by this Act;
3        6. Gross rental receipts which were received by him
4    during the preceding calendar month and upon the basis of
5    which the tax is imposed;
6        7. The amount of tax due;
7        8.Credit for any reimbursement of tax paid by a
8    re-renter of hotel rooms to hotel operators for rentals
9    purchased for re-rental, as provided in Section 3-3 of
10    this Act;
11        9. 8. Such other reasonable information as the
12    Department may require.
13    If the operator's average monthly tax liability to the
14Department does not exceed $200, the Department may authorize
15his returns to be filed on a quarter annual basis, with the
16return for January, February and March of a given year being
17due by April 30 of such year; with the return for April, May
18and June of a given year being due by July 31 of such year;
19with the return for July, August and September of a given year
20being due by October 31 of such year, and with the return for
21October, November and December of a given year being due by
22January 31 of the following year.
23    If the operator's average monthly tax liability to the
24Department does not exceed $50, the Department may authorize
25his returns to be filed on an annual basis, with the return for
26a given year being due by January 31 of the following year.

 

 

SB1746- 32 -LRB102 16057 HLH 21429 b

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

 

 

SB1746- 33 -LRB102 16057 HLH 21429 b

1accredited agent of such corporation.
2    The person filing the return herein provided for shall, at
3the time of filing such return, pay to the Department the
4amount of tax herein imposed. The operator filing the return
5under this Section shall, at the time of filing such return,
6pay to the Department the amount of tax imposed by this Act
7less a discount of 2.1% or $25 per calendar year, whichever is
8greater, which is allowed to reimburse the operator for the
9expenses incurred in keeping records, preparing and filing
10returns, remitting the tax and supplying data to the
11Department on request.
12    If any payment provided for in this Section exceeds the
13operator's liabilities under this Act, as shown on an original
14return, the Department may authorize the operator to credit
15such excess payment against liability subsequently to be
16remitted to the Department under this Act, in accordance with
17reasonable rules adopted by the Department. If the Department
18subsequently determines that all or any part of the credit
19taken was not actually due to the operator, the operator's
20discount shall be reduced by an amount equal to the difference
21between the discount as applied to the credit taken and that
22actually due, and that operator shall be liable for penalties
23and interest on such difference.
24    There shall be deposited in the Build Illinois Fund in the
25State Treasury for each State fiscal year 40% of the amount of
26total net proceeds from the tax imposed by subsection (a) of

 

 

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1Section 3. Of the remaining 60%, $5,000,000 shall be deposited
2in the Illinois Sports Facilities Fund and credited to the
3Subsidy Account each fiscal year by making monthly deposits in
4the amount of 1/8 of $5,000,000 plus cumulative deficiencies
5in such deposits for prior months, and an additional
6$8,000,000 shall be deposited in the Illinois Sports
7Facilities Fund and credited to the Advance Account each
8fiscal year by making monthly deposits in the amount of 1/8 of
9$8,000,000 plus any cumulative deficiencies in such deposits
10for prior months; provided, that for fiscal years ending after
11June 30, 2001, the amount to be so deposited into the Illinois
12Sports Facilities Fund and credited to the Advance Account
13each fiscal year shall be increased from $8,000,000 to the
14then applicable Advance Amount and the required monthly
15deposits beginning with July 2001 shall be in the amount of 1/8
16of the then applicable Advance Amount plus any cumulative
17deficiencies in those deposits for prior months. (The deposits
18of the additional $8,000,000 or the then applicable Advance
19Amount, as applicable, during each fiscal year shall be
20treated as advances of funds to the Illinois Sports Facilities
21Authority for its corporate purposes to the extent paid to the
22Authority or its trustee and shall be repaid into the General
23Revenue Fund in the State Treasury by the State Treasurer on
24behalf of the Authority pursuant to Section 19 of the Illinois
25Sports Facilities Authority Act, as amended. If in any fiscal
26year the full amount of the then applicable Advance Amount is

 

 

SB1746- 35 -LRB102 16057 HLH 21429 b

1not repaid into the General Revenue Fund, then the deficiency
2shall be paid from the amount in the Local Government
3Distributive Fund that would otherwise be allocated to the
4City of Chicago under the State Revenue Sharing Act.)
5    For purposes of the foregoing paragraph, the term "Advance
6Amount" means, for fiscal year 2002, $22,179,000, and for
7subsequent fiscal years through fiscal year 2032, 105.615% of
8the Advance Amount for the immediately preceding fiscal year,
9rounded up to the nearest $1,000.
10    Of the remaining 60% of the amount of total net proceeds
11prior to August 1, 2011 from the tax imposed by subsection (a)
12of Section 3 after all required deposits in the Illinois
13Sports Facilities Fund, the amount equal to 8% of the net
14revenue realized from this Act plus an amount equal to 8% of
15the net revenue realized from any tax imposed under Section
164.05 of the Chicago World's Fair-1992 Authority Act during the
17preceding month shall be deposited in the Local Tourism Fund
18each month for purposes authorized by Section 605-705 of the
19Department of Commerce and Economic Opportunity Law (20 ILCS
20605/605-705). Of the remaining 60% of the amount of total net
21proceeds beginning on August 1, 2011 from the tax imposed by
22subsection (a) of Section 3 after all required deposits in the
23Illinois Sports Facilities Fund, an amount equal to 8% of the
24net revenue realized from this Act plus an amount equal to 8%
25of the net revenue realized from any tax imposed under Section
264.05 of the Chicago World's Fair-1992 Authority Act during the

 

 

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1preceding month shall be deposited as follows: 18% of such
2amount shall be deposited into the Chicago Travel Industry
3Promotion Fund for the purposes described in subsection (n) of
4Section 5 of the Metropolitan Pier and Exposition Authority
5Act and the remaining 82% of such amount shall be deposited
6into the Local Tourism Fund each month for purposes authorized
7by Section 605-705 of the Department of Commerce and Economic
8Opportunity Law. Beginning on August 1, 1999 and ending on
9July 31, 2011, an amount equal to 4.5% of the net revenue
10realized from the Hotel Operators' Occupation Tax Act during
11the preceding month shall be deposited into the International
12Tourism Fund for the purposes authorized in Section 605-707 of
13the Department of Commerce and Economic Opportunity Law.
14Beginning on August 1, 2011, an amount equal to 4.5% of the net
15revenue realized from this Act during the preceding month
16shall be deposited as follows: 55% of such amount shall be
17deposited into the Chicago Travel Industry Promotion Fund for
18the purposes described in subsection (n) of Section 5 of the
19Metropolitan Pier and Exposition Authority Act and the
20remaining 45% of such amount deposited into the International
21Tourism Fund for the purposes authorized in Section 605-707 of
22the Department of Commerce and Economic Opportunity Law. "Net
23revenue realized for a month" means the revenue collected by
24the State under that Act during the previous month less the
25amount paid out during that same month as refunds to taxpayers
26for overpayment of liability under that Act.

 

 

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

 

 

SB1746- 38 -LRB102 16057 HLH 21429 b

1is not filed when and as required the taxpayer shall be liable
2for a penalty in an amount determined in accordance with
3Section 3-4 of the Uniform Penalty and Interest Act until such
4return is filed as required, the penalty to be assessed and
5collected in the same manner as any other penalty provided for
6in this Act.
7    The chief executive officer, proprietor, owner or highest
8ranking manager shall sign the annual return to certify the
9accuracy of the information contained therein. Any person who
10willfully signs the annual return containing false or
11inaccurate information shall be guilty of perjury and punished
12accordingly. The annual return form prescribed by the
13Department shall include a warning that the person signing the
14return may be liable for perjury.
15    The foregoing portion of this Section concerning the
16filing of an annual information return shall not apply to an
17operator who is not required to file an income tax return with
18the United States Government.
19(Source: P.A. 100-23, eff. 7-6-17; 100-1171, eff. 1-4-19.)
 
20    Section 905. The Illinois Municipal Code is amended by
21changing Sections 8-3-13, 8-3-14, and 8-3-14a as follows:
 
22    (65 ILCS 5/8-3-13)  (from Ch. 24, par. 8-3-13)
23    Sec. 8-3-13. The corporate authorities of any municipality
24containing 500,000 or more inhabitants may impose a tax prior

 

 

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1to July 1, 1969, upon all persons engaged in the municipality
2in the business of renting, leasing or letting rooms in a
3hotel, as defined in the Hotel Operators' Occupation Tax Act,
4or a short-term rental, as defined in the Short-Term Rental
5Operators' Occupation Tax Act, at a rate not to exceed 1% of
6the gross rental receipts from the renting, leasing or
7letting, excluding, however, from gross rental receipts, the
8proceeds of the renting, leasing or letting to permanent
9residents of that hotel or short-term rental and proceeds from
10the tax imposed under subsection (c) of Section 13 of the
11Metropolitan Pier and Exposition Authority Act.
12    The tax imposed by a municipality under this Section and
13all civil penalties that may be assessed as an incident
14thereof shall be collected and enforced by the State
15Department of Revenue. The certificate of registration that is
16issued by the Department to a lessor under the Hotel
17Operators' Occupation Tax Act, or a business license issued by
18the Department under the Short-Term Rental Operators' Act
19shall permit the registrant to engage in a business that is
20taxable under any ordinance or resolution enacted under this
21Section without registering separately with the Department
22under the ordinance or resolution or under this Section. The
23Department shall have full power to administer and enforce
24this Section; to collect all taxes and penalties due
25hereunder; to dispose of taxes and penalties so collected in
26the manner provided in this Section; and to determine all

 

 

SB1746- 40 -LRB102 16057 HLH 21429 b

1rights to credit memoranda arising on account of the erroneous
2payment of tax or penalty hereunder. In the administration of
3and compliance with this Section, the Department and persons
4who are subject to this Section shall have the same rights,
5remedies, privileges, immunities, powers and duties, and be
6subject to the same conditions, restrictions, limitations,
7penalties and definitions of terms, and employ the same modes
8of procedure, as are prescribed in the Hotel Operators'
9Occupation Tax Act, the Short-Term Rental Operators'
10Occupation Tax Act, and the Uniform Penalty and Interest Act,
11as fully as if the provisions contained in those Acts were set
12forth herein.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the warrant to be drawn for the
17amount specified, and to the person named, in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the Illinois tourism tax fund.
20    Persons subject to any tax imposed under authority granted
21by this Section may reimburse themselves for their tax
22liability for that tax by separately stating the tax as an
23additional charge, which charge may be stated in combination,
24in a single amount, with State tax imposed under the Hotel
25Operators' Occupation Tax Act or the Short-Term Rental
26Operators' Occupation Tax Act.

 

 

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1    The Department shall forthwith pay over to the State
2Treasurer, ex-officio, as trustee, all taxes and penalties
3collected hereunder. On or before the 25th day of each
4calendar month, the Department shall prepare and certify to
5the Comptroller the disbursement of stated sums of money to
6named municipalities from which lessors have paid taxes or
7penalties hereunder to the Department during the second
8preceding calendar month. The amount to be paid to each
9municipality shall be the amount (not including credit
10memoranda) collected hereunder during the second preceding
11calendar month by the Department, and not including an amount
12equal to the amount of refunds made during the second
13preceding calendar month by the Department on behalf of the
14municipality, less 4% of the balance, which sum shall be
15retained by the State Treasurer to cover the costs incurred by
16the Department in administering and enforcing the provisions
17of this Section, as provided herein. The Department, at the
18time of each monthly disbursement to the municipalities, shall
19prepare and certify to the Comptroller the amount so retained
20by the State Treasurer, which shall be paid into the General
21Revenue Fund of the State Treasury.
22    Within 10 days after receipt by the Comptroller of the
23disbursement certification to the municipalities and the
24General Revenue Fund provided for in this Section to be given
25to the Comptroller by the Department, the Comptroller shall
26cause the warrants to be drawn for the respective amounts in

 

 

SB1746- 42 -LRB102 16057 HLH 21429 b

1accordance with the directions contained in the certification.
2    Nothing in this Section shall be construed to authorize a
3municipality to impose a tax upon the privilege of engaging in
4any business that, under the Constitution of the United
5States, may not be made the subject of taxation by this State.
6    An ordinance or resolution imposing a tax hereunder or
7effecting a change in the rate thereof shall be effective on
8the first day of the calendar month next following the
9expiration of the publication period provided in Section 1-2-4
10in respect to municipalities governed by that Section.
11    The corporate authorities of any municipality that levies
12a tax authorized by this Section shall transmit to the
13Department of Revenue on or not later than 5 days after the
14effective date of the ordinance or resolution a certified copy
15of the ordinance or resolution imposing the tax; whereupon,
16the Department of Revenue shall proceed to administer and
17enforce this Section on behalf of the municipality as of the
18effective date of the ordinance or resolution. Upon a change
19in rate of a tax levied hereunder, or upon the discontinuance
20of the tax, the corporate authorities of the municipality
21shall, on or not later than 5 days after the effective date of
22the ordinance or resolution discontinuing the tax or effecting
23a change in rate, transmit to the Department of Revenue a
24certified copy of the ordinance or resolution effecting the
25change or discontinuance. The amounts disbursed to any
26municipality under this Section shall be expended by the

 

 

SB1746- 43 -LRB102 16057 HLH 21429 b

1municipality solely to promote tourism, conventions and other
2special events within that municipality or otherwise to
3attract nonresidents to visit the municipality.
4    Any municipality receiving and disbursing money under this
5Section shall report on or before the first Monday in January
6of each year to the Advisory Committee of the Illinois Tourism
7Promotion Fund, created by Section 12 of the Illinois
8Promotion Act. The reports shall specify the purposes for
9which the disbursements were made and shall contain detailed
10amounts of all receipts and disbursements under this Section.
11    This Section may be cited as the Tourism, Conventions and
12Other Special Events Promotion Act of 1967.
13(Source: P.A. 87-205; 87-733; 87-895.)
 
14    (65 ILCS 5/8-3-14)  (from Ch. 24, par. 8-3-14)
15    Sec. 8-3-14. Municipal hotel and short-term rental
16operators' occupation tax. The corporate authorities of any
17municipality may impose a tax upon all persons engaged in such
18municipality in the business of renting, leasing or letting
19rooms in a hotel, as defined in "The Hotel Operators'
20Occupation Tax Act," or a short-term rental, as defined in the
21Short-Term Rental Operators' Occupation Tax Act, at a rate not
22to exceed 6% in the City of East Peoria and in the Village of
23Morton and 5% in all other municipalities of the gross rental
24receipts from such renting, leasing or letting, excluding,
25however, from gross rental receipts, the proceeds of such

 

 

SB1746- 44 -LRB102 16057 HLH 21429 b

1renting, leasing or letting to permanent residents of that
2hotel or short-term rental and proceeds from the tax imposed
3under subsection (c) of Section 13 of the Metropolitan Pier
4and Exposition Authority Act, and may provide for the
5administration and enforcement of the tax, and for the
6collection thereof from the persons subject to the tax, as the
7corporate authorities determine to be necessary or practicable
8for the effective administration of the tax. The municipality
9may not impose a tax under this Section if it imposes a tax
10under Section 8-3-14a.
11    Persons subject to any tax imposed pursuant to authority
12granted by this Section may reimburse themselves for their tax
13liability for such tax by separately stating such tax as an
14additional charge, which charge may be stated in combination,
15in a single amount, with State tax imposed under "The Hotel
16Operators' Occupation Tax Act" or the Short-Term Rental
17Operators' Occupation Tax Act.
18    Nothing in this Section shall be construed to authorize a
19municipality to impose a tax upon the privilege of engaging in
20any business which under the constitution of the United States
21may not be made the subject of taxation by this State.
22    Except as otherwise provided in this Division, the amounts
23collected by any municipality pursuant to this Section shall
24be expended by the municipality solely to promote tourism and
25conventions within that municipality or otherwise to attract
26nonresident overnight visitors to the municipality.

 

 

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1    No funds received pursuant to this Section shall be used
2to advertise for or otherwise promote new competition in the
3hotel business.
4(Source: P.A. 101-204, eff. 8-2-19.)
 
5    (65 ILCS 5/8-3-14a)
6    Sec. 8-3-14a. Municipal hotel or short-term rental use
7tax.
8    (a) The corporate authorities of any municipality may
9impose a tax upon the privilege of renting or leasing rooms in
10a hotel or short-term rental within the municipality at a rate
11not to exceed 5% of the rental or lease payment. The corporate
12authorities may provide for the administration and enforcement
13of the tax and for the collection thereof from the persons
14subject to the tax, as the corporate authorities determine to
15be necessary or practical for the effective administration of
16the tax.
17    (b) Each hotel, short-term rental operator, or hosting
18platform acting as an agent for the short-term rental operator
19in the municipality shall collect the tax from the person
20making the rental or lease payment at the time that the payment
21is tendered to the hotel. The hotel shall, as trustee, remit
22the tax to the municipality.
23    (c) The tax authorized under this Section does not apply
24to any rental or lease payment by a permanent resident of that
25hotel or short-term rental or to any payment made to any hotel

 

 

SB1746- 46 -LRB102 16057 HLH 21429 b

1that is subject to the tax imposed under subsection (c) of
2Section 13 of the Metropolitan Pier and Exposition Authority
3Act. A municipality may not impose a tax under this Section if
4it imposes a tax under Section 8-3-14. Nothing in this Section
5may be construed to authorize a municipality to impose a tax
6upon the privilege of engaging in any business that under the
7Constitution of the United States may not be made the subject
8of taxation by this State.
9    (d) Except as otherwise provided in this Division, the
10moneys collected by a municipality under this Section may be
11expended solely to promote tourism and conventions within that
12municipality or otherwise to attract nonresident overnight
13visitors to the municipality. No moneys received under this
14Section may be used to advertise for or otherwise promote new
15competition in the hotel business.
16    (e) As used in this Section, "hotel" has the meaning set
17forth in Section 2 of the Hotel Operators' Occupation Tax Act.
18    (f) As used in this Section, "short-term rental" and
19"hosting platform" have the meaning set forth in Section 2 of
20the Short-Term Rental Operators' Occupation Tax Act.
21(Source: P.A. 101-204, eff. 8-2-19.)
 
22    Section 910. The Counties Code is amended by changing
23Section 5-1030 as follows:
 
24    (55 ILCS 5/5-1030)  (from Ch. 34, par. 5-1030)

 

 

SB1746- 47 -LRB102 16057 HLH 21429 b

1    Sec. 5-1030. Hotel rooms, short-term rentals, tax on gross
2rental receipts.
3    (a) The corporate authorities of any county may by
4ordinance impose a tax upon all persons engaged in such county
5in the business of renting, leasing or letting rooms in a hotel
6or short-term rental which is not located within a city,
7village, or incorporated town that imposes a tax under Section
88-3-14 of the Illinois Municipal Code, as defined in "The
9Hotel Operators' Occupation Tax Act or the Short-Term Rental
10Operators' Occupation Tax Act ", at a rate not to exceed 5% of
11the gross rental receipts from such renting, leasing or
12letting, excluding, however, from gross rental receipts, the
13proceeds of such renting, leasing or letting to permanent
14residents of that hotel or short-term rental, and may provide
15for the administration and enforcement of the tax, and for the
16collection thereof from the persons subject to the tax, as the
17corporate authorities determine to be necessary or practicable
18for the effective administration of the tax.
19    (b) With the consent of municipalities representing at
20least 67% of the population of Winnebago County, as determined
21by the 2010 federal decennial census and as expressed by
22resolution of the corporate authorities of those
23municipalities, the county board of Winnebago County may, by
24ordinance, impose a tax upon all persons engaged in the county
25in the business of renting, leasing, or letting rooms in a
26hotel or short-term rental that imposes a tax under Section

 

 

SB1746- 48 -LRB102 16057 HLH 21429 b

18-3-14 of the Illinois Municipal Code, as defined in "The
2Hotel Operators' Occupation Tax Act" or the Short-Term Rental
3Operators' Occupation Tax Act, at a rate not to exceed 2% of
4the gross rental receipts from renting, leasing, or letting,
5excluding, however, from gross rental receipts, the proceeds
6of the renting, leasing, or letting to permanent residents of
7that hotel or short-term rental, and may provide for the
8administration and enforcement of the tax, and for the
9collection thereof from the persons subject to the tax, as the
10county board determines to be necessary or practicable for the
11effective administration of the tax. The tax shall be
12instituted on a county-wide basis and shall be in addition to
13any tax imposed by this or any other provision of law. The
14revenue generated under this subsection shall be accounted for
15and segregated from all other funds of the county and shall be
16utilized solely for either: (1) encouraging, supporting,
17marketing, constructing, or operating, either directly by the
18county or through other taxing bodies within the county,
19sports, arts, or other entertainment or tourism facilities or
20programs for the purpose of promoting tourism,
21competitiveness, job growth, and for the general health and
22well-being of the citizens of the county; or (2) payment
23towards debt services on bonds issued for the purposes set
24forth in this subsection.
25    (c) A Tourism Facility Board shall be established,
26comprised of a representative from the county and from each

 

 

SB1746- 49 -LRB102 16057 HLH 21429 b

1municipality that has approved the imposition of the tax under
2subsection (b) of this Section.
3        (1) A Board member's vote is weighted based on the
4    municipality's population relative to the population of
5    the county, with the county representing the population
6    within unincorporated areas of the county. Representatives
7    from the Rockford Park District and Rockford Area
8    Convention and Visitors Bureau shall serve as ex-officio
9    members with no voting rights.
10        (2) The Board must meet not less frequently than once
11    per year to direct the use of revenues collected from the
12    tax imposed under subsection (b) of this Section that are
13    not already directed for use pursuant to an
14    intergovernmental agreement between the county and another
15    entity represented on the Board, including the ex-officio
16    members, and for any other reason the Board deems
17    necessary. Affirmative actions of the Board shall require
18    a weighted vote of Board members representing not less
19    than 67% of the population of the county.
20        (3) The Board shall not be a separate unit of local
21    government, shall have no paid staff, and members of the
22    Board shall receive no compensation or reimbursement of
23    expenses from proceeds of the tax imposed under subsection
24    (b) of this Section.
25    (d) Persons subject to any tax imposed pursuant to
26authority granted by this Section may reimburse themselves for

 

 

SB1746- 50 -LRB102 16057 HLH 21429 b

1their tax liability for such tax by separately stating such
2tax as an additional charge, which charge may be stated in
3combination, in a single amount, with State tax imposed under
4"The Hotel Operators' Occupation Tax Act" or the Short-Term
5Rental Operators' Occupation Tax Act.
6    Nothing in this Section shall be construed to authorize a
7county to impose a tax upon the privilege of engaging in any
8business which under the Constitution of the United States may
9not be made the subject of taxation by this State.
10    An ordinance or resolution imposing a tax hereunder or
11effecting a change in the rate thereof shall be effective on
12the first day of the calendar month next following its passage
13and required publication.
14    The amounts collected by any county pursuant to this
15Section shall be expended to promote tourism; conventions;
16expositions; theatrical, sports and cultural activities within
17that county or otherwise to attract nonresident overnight
18visitors to the county.
19    Any county may agree with any unit of local government,
20including any authority defined as a metropolitan exposition,
21auditorium and office building authority, fair and exposition
22authority, exposition and auditorium authority, or civic
23center authority created pursuant to provisions of Illinois
24law and the territory of which unit of local government or
25authority is co-extensive with or wholly within such county,
26to impose and collect for a period not to exceed 40 years, any

 

 

SB1746- 51 -LRB102 16057 HLH 21429 b

1portion or all of the tax authorized pursuant to this Section
2and to transmit such tax so collected to such unit of local
3government or authority. The amount so paid shall be expended
4by any such unit of local government or authority for the
5purposes for which such tax is authorized. Any such agreement
6must be authorized by resolution or ordinance, as the case may
7be, of such county and unit of local government or authority,
8and such agreement may provide for the irrevocable imposition
9and collection of said tax at such rate, or amount as limited
10by a given rate, as may be agreed upon for the full period of
11time set forth in such agreement; and such agreement may
12further provide for any other terms as deemed necessary or
13advisable by such county and such unit of local government or
14authority. Any such agreement shall be binding and enforceable
15by either party to such agreement. Such agreement entered into
16pursuant to this Section shall not in any event constitute an
17indebtedness of such county subject to any limitation imposed
18by statute or otherwise.
19(Source: P.A. 98-313, eff. 8-12-13.)
 
20    Section 99. Effective date. This Act takes effect October
211, 2021.