103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2564

 

Introduced 4/19/2023, 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
55 ILCS 5/5-1030  from Ch. 34, par. 5-1030
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

    Creates the Short-Term Rental Occupation Tax Act. Imposes taxes upon short-term rental transactions facilitated by a hosting platform. Provides that one tax is imposed at the rate of 5% of 94% of the gross rental receipts from the transaction. Provides that an additional tax is imposed at the rate of 1% of 94% of the gross rental receipts from the transaction. Provides that operators of short-term rentals shall obtain a business license from the Department of Revenue. 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. Amends the Counties Code and the Illinois Municipal Code to make conforming changes. Effective January 1, 2024.


LRB103 31564 HLH 59703 b

 

 

A BILL FOR

 

SB2564LRB103 31564 HLH 59703 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 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 online application, software,
13website, or system.
14    "Department" means the Department of Revenue.
15    "Hosting platform" or "platform" means a person who
16provides an online application, software, website, or system
17through which a short-term rental located in this State is
18advertised or held out to the public as available to rent for
19occupancy.
20    "Hotel" has the same meaning as defined in the Hotel
21Operators' Occupation Tax Act.
22    "Occupancy" means the use or possession by an occupant, or
23the right to the use or possession by an occupant, of any room

 

 

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

 

 

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

 

 

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1    Department of Housing and Urban Development that is
2    designated primarily as housing for persons at least 62
3    years of age. The Department may require the operator of
4    the apartment building to attest in writing that the
5    building meets the criteria provided in this paragraph;
6    the Department may adopt rules to implement this
7    requirement; or
8        (7) the rental, leasing, or letting of rooms or
9    accommodations for occupancy in a hotel.
 
10    Section 10. Rate; exemptions.
11    (a) A tax is imposed upon each hosting platform that
12facilitates a short-term rental transaction in the State. The
13tax is imposed at the rate of 5% of 94% of the gross rental
14receipts from the short-term rental transaction.
15    (b) An additional tax is imposed upon each hosting
16platform that facilitates a short-term rental transaction in
17the State. That tax is imposed at the rate of 1% of 94% of the
18gross rental receipts from the short-term rental transaction.
19    (c) No funds received pursuant to this Act shall be used to
20advertise for or otherwise promote new competition in the
21hotel industry.
22    (d) The taxes are not imposed upon the privilege of
23engaging in any business in interstate commerce or otherwise,
24which business may not, under the Constitution and statutes of
25the United States, be made the subject of taxation by this

 

 

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1State. In addition, the tax is not imposed upon gross rental
2receipts for which the hosting platform is prohibited from
3obtaining reimbursement for the tax from the customer by
4reason of a federal treaty.
5    (e) The taxes imposed by this Act shall not apply to a
6short-term rental transaction if:
7        (1) any of the parties to the transaction is an entity
8    that is organized and operated exclusively for religious
9    or charitable purposes;
10        (2) that party possesses an active Exemption
11    Identification Number issued by the Department pursuant to
12    the Retailers' Occupation Tax Act; and
13        (3) the short-term rental is in furtherance of the
14    purposes for which the religious or charitable entity is
15    organized.
16    (f) Persons subject to the tax imposed by this Act may
17reimburse themselves for their tax liability under this Act by
18separately stating the tax as an additional charge, which
19charge may be stated in combination, in a single amount, with
20any tax imposed by any unit of local government.
21    (g) If a hosting platform collects an amount (however
22designated) that purports to reimburse the platform for its
23short-term rental occupation tax liability measured by
24receipts that are not subject to the short-term rental
25occupation tax, or if a hosting platform, in collecting an
26amount (however designated) that purports to reimburse the

 

 

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1platform for its short-term rental occupation tax liability
2measured by receipts which are subject to tax under this Act,
3collects more from the customer than the short-term rental
4occupation tax liability from the transaction, then the
5customer shall have a legal right to claim a refund of that
6amount from the platform. However, if the amount is not
7refunded to the customer for any reason, the hosting platform
8is liable to pay that amount to the Department.
9    (h) The tax imposed under this Act shall be in addition to
10all other occupation or privilege taxes imposed by the State
11of Illinois or by any municipal corporation or political
12subdivision thereof.
 
13    Section 15. Hosting platform collection and remittance of
14taxes. Any hosting platform that facilitates a booking
15transaction shall be required to: (i) assess, collect, report,
16and remit the tax to the Department; (ii) maintain records of
17any taxes collected under this Act that have been remitted to
18the appropriate taxing body and submit these records to the
19Department in accordance with this Act; and (iii) notify the
20short-term rental operator that the operator must comply with
21all applicable local, State, and federal laws, regulations,
22and ordinances, including this Act.
 
23    Section 20. Hosting platforms.
24    (a) It is unlawful for any hosting platform to facilitate

 

 

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

 

 

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1reasonably designate or maintain a registered agent in this
2State, the Director may deem himself or herself or another
3appropriate person an agent of the hosting platform for
4purposes of accepting service of any process, notice, or
5demand.
6    (d) The Department may issue a certificate of registration
7to each hosting platform that meets the requirements of this
8Act and the rules for hosting platform registration adopted
9under this Act by the Department.
 
10    Section 25. Records and reporting.
11    (a) Notwithstanding any other provision of law or
12Department action to the contrary:
13        (1) Every hosting platform shall keep separate books
14    and records of the hosting platform's business so as to
15    show the rents and occupancies that are taxable under this
16    Act separately from the transactions of the hosting
17    platform that are not taxable under this Act. If any
18    hosting platform fails to keep such separate books or
19    records, the hosting platform shall be liable to remit the
20    tax at the rate designated in this Act upon the entire
21    proceeds from the short-term rental. The Department may
22    adopt rules that establish requirements, including record
23    forms and formats, for records required to be kept and
24    maintained by taxpayers. For purposes of this Section,
25    "records" means all data maintained by the taxpayer,

 

 

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1    including data on paper, microfilm, microfiche, or any
2    type of machine-sensible data compilation.
3        (2) In accordance with rules adopted by the Department
4    and subject to applicable laws, for all booking
5    transactions it facilitates for short-term rentals located
6    in this State a hosting platform shall develop and
7    maintain a report that must include all of the following
8    information about each short-term rental booking
9    transaction:
10            (A) the name of the operator;
11            (B) the operator's or short-term rental's license,
12        registration, permit, or other number as applicable;
13            (C) the physical address;
14            (D) any room or dwelling designation;
15            (E) the individual periods of rental by calendar
16        date;
17            (F) the itemized amounts collected or processed by
18        the hosting platform for the rental, taxes, and all
19        other charges; and
20            (G) any additional information that the Department
21        may require by rule.
22    (b) The hosting platform shall submit the report to the
23Department monthly in the format requested by the Department
24and shall make the report, as well as any underlying records
25requested by the Department, available for audit by the
26Department upon the Department's request. The Department may

 

 

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1issue and serve subpoenas and compel the production of the
2report and underlying records as necessary to enforce hosting
3platform compliance with this Section. Such underlying records
4may not include copies of specific message exchanges between
5the hosting platform and an operator, short-term rental
6renter, or occupant, or between the operator and short-term
7rental renter or occupant.
8    (c) The hosting platform shall maintain the report and
9underlying records for at least 3 years, in accordance with
10any rules adopted by the Department.
11    (d) The Department shall share the report, sections of the
12report, underlying records, or any combination of those items,
13with an agency or local government of this State to ensure
14compliance with this Act, the laws of this State, and any local
15laws, regulations, or ordinances.
16    (e) The Department may use the report and underlying
17records for tax auditing purposes, and local governments may
18use the reports and underlying records to ensure compliance
19with laws, ordinances, or regulations.
20    (f) A hosting platform may not facilitate a booking
21transaction for a short-term rental located in this State
22unless the operator consents to the hosting platform's
23disclosure of the information required by this Section.
24    (g) A hosting platform that operates in violation of this
25Section or the rules of the Department adopted under this Act
26shall be subject to fines up to $1,000 per offense and to

 

 

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1suspension, revocation, or refusal of a registration issued
2pursuant to this Act. For purposes of this subsection, the
3Department may regard as a separate offense each booking
4transaction a hosting platform facilitates in violation of
5this Act or the rules of the Department or each calendar day
6that such violation persists.
 
7    Section 30. State business licensing.
8    (a) Before an operator engages in the business of a
9short-term rental in this State, the operator shall obtain a
10business license from the Department. In order to obtain a
11business license from the Department, the operator must first
12provide evidence to the Department that the short-term rental
13is lawfully registered, licensed, permitted, or otherwise
14allowed to operate as a short-term rental pursuant to the
15applicable local law, regulation, or ordinance.
16    (b) An operator's business license number issued by the
17Department must be displayed on any advertisement or listing
18of a short-term rental and be physically displayed within the
19short-term rental.
20    (c) If the Department notifies a hosting platform in
21writing that an advertisement or listing for a short-term
22rental in this State fails to display a valid business license
23number issued by the Department, the hosting platform must
24remove all advertisements or listings for that short-term
25rental from its online application, software, website, or

 

 

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1system within 3 business days unless the listing is otherwise
2brought into compliance with the law.
3    (d) The Department shall revoke or refuse to issue or
4renew a short-term rental operator's business license when:
5(i) the Department determines that the operation of the
6subject short-term rental violates the terms of an applicable
7lease or property restriction; or (ii) the Department
8determines that the operation of the short-term rental
9violates a State, federal, or local law, ordinance, or
10regulation, or the short-term rental operator is the subject
11of a final order or judgment lawfully directing the
12termination of the premises' use as a short-term rental.
 
13    Section 35. Filing of returns and distribution of
14proceeds. Except as provided in this Section, on or before the
15last day of each calendar month, each hosting platform that is
16liable for the tax under this Act during the preceding
17calendar month shall file a return for the preceding calendar
18month with the Department, stating:
19        (1) the name of the hosting platform;
20        (2) the address of the principal place of business
21    from which the hosting platform engages in the business of
22    facilitating short-term rentals in this State;
23        (3) the total amount of rental receipts received by
24    the hosting platform during the preceding calendar month
25    from renting, leasing or letting rooms in this State

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1person who willfully signs the annual return containing false
2or inaccurate information is guilty of perjury. The annual
3return form prescribed by the Department shall include a
4warning that the person signing the return may be liable for
5perjury.
6    The provisions of this Section concerning the filing of an
7annual information return shall not apply to a taxpayer who is
8not required to file an income tax return with the United
9States Government.
 
10    Section 40. Incorporation of Retailers' Occupation Tax Act
11and Uniform Penalty and Interest Act. All of the provisions of
12Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
136c, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation Tax
14Act and Section 3-7 of the Uniform Penalty and Interest Act
15shall apply to persons in the business of renting, leasing, or
16letting short-term rental rooms in this State to the same
17extent as if such provisions were included herein.
 
18    Section 45. Recordkeeping. When the amount due is under
19$300, any hosting platform that (i) fails to make a return
20under this Act, (ii) fails to keep books and records as
21required by this Act, (iii) makes a fraudulent return under
22this Act, or (iv) willfully violates any rule of the
23Department for the administration and enforcement of this Act
24is guilty of a Class 4 felony. When the amount due is under

 

 

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

 

 

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1occupation tax liability in a transaction that is subject to
2the tax that is imposed by this Act, is guilty of a Class 4
3felony.
4    When the amount due is $300 or more, any hosting platform
5that (i) fails to make a return under this Act, (ii) fails to
6keep books and records as required by this Act, (iii) makes a
7fraudulent return under this Act, or (iv) willfully violates
8any rule of the Department for the administration and
9enforcement of this Act is guilty of a Class 3 felony. When the
10amount due is $300 or more, any officer or agent of a hosting
11platform who signs a fraudulent return made on behalf of the
12hosting platform is guilty of a Class 3 felony.
13    When the amount due is $300 or more, any person who accepts
14money that is due to the Department under this Act from a
15taxpayer for the purpose of acting as the taxpayer's agent to
16make the payment to the Department, but who fails to remit such
17payment to the Department is guilty of a Class 3 felony. Any
18such person who purports to make such payment by issuing or
19delivering a check or other order upon a real or fictitious
20depository for the payment of money, knowing that it will not
21be paid by the depository, shall be guilty of a deceptive
22practice in violation of Section 17-1 of the Criminal Code of
232012.
24    A prosecution for any act in violation of this Section may
25be commenced at any time within 3 years of the commission of
26that act.
 

 

 

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1    Section 50. Intergovernmental sharing of information. Any
2information collected by the Department pursuant to this Act
3shall not be subject to the Freedom of Information Act.
4Information collected pursuant to this Act by the Department
5may be shared with local units of government upon request,
6provided that the information is treated as confidential at
7all times by the local unit of government.
 
8    Section 55. Local regulation. A unit of local government
9may adopt an ordinance or resolution regulating short-term
10rental activities within that unit of local government that
11imposes requirements not inconsistent with nor less stringent
12than those imposed by this Act.
 
13    Section 60. Severability. If any provision of this Act, in
14part or in full, or its application to any person, entity, or
15circumstance is held invalid, the invalidity does not affect
16other provisions or applications of the Act which can be given
17effect without the invalid provision or application, and to
18this end the provisions of this Act are severable.
 
19    Section 900. The Hotel Operators' Occupation Tax Act is
20amended by changing Sections 2, 3, 4, 5, and 6 and by adding
21Sections 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.
12    (3) "Occupancy" means the use or possession, or the right
13to the use or possession, of any room or rooms in a hotel for
14any purpose, or the right to the use or possession of the
15furnishings or to the services and accommodations accompanying
16the use and possession of the room or rooms.
17    (4) "Room" or "rooms" means any living quarters, sleeping
18or housekeeping accommodations.
19    (5) "Permanent resident" means any person who occupied or
20has the right to occupy any room or rooms, regardless of
21whether or not it is the same room or rooms, in a hotel for at
22least 30 consecutive days.
23    (6) "Rent" or "rental" means the consideration received
24for occupancy, valued in money, whether received in money or
25otherwise, including all receipts, cash, credits and property
26or services of any kind or nature."Rent" or "rental" includes

 

 

SB2564- 22 -LRB103 31564 HLH 59703 b

1any fee, charge, or commission received by a re-renter of
2hotel rooms specifically in connection with the re-rental of
3hotel rooms.
4    (7) "Department" means the Department of Revenue.
5    (8) "Person" means any natural individual, firm,
6partnership, association, joint stock company, joint
7adventure, public or private corporation, limited liability
8company, or a receiver, executor, trustee, guardian or other
9representative appointed by order of any court.
10    (9) "Re-renter of hotel rooms" means a person who is not
11employed by the hotel operator but who (i) obtains from the
12hotel operator the right or authority to grant control of,
13access to, or occupancy of a hotel room in this State to a
14guest of the hotel or (ii) facilitates the booking of a hotel
15room located in this State. A person who obtains those rights
16or authorities from the hotel operator is not considered a
17re-renter of a hotel room if the person operates under a shared
18hotel brand with the operator.
19(Source: P.A. 100-213, eff. 8-18-17.)
 
20    (35 ILCS 145/3)  (from Ch. 120, par. 481b.33)
21    Sec. 3. Rate; exemptions.
22    (a) A tax is imposed upon hotel operators persons engaged
23in the business of renting, leasing or letting rooms in a hotel
24at the rate of 5% of 94% of the gross rental receipts from
25engaging in business as a hotel operator such renting, leasing

 

 

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1or letting, excluding, however, from gross rental receipts,
2the proceeds of such renting, leasing or letting hotel rooms
3to permanent residents of a that hotel and proceeds from the
4tax imposed under subsection (c) of Section 13 of the
5Metropolitan Pier and Exposition Authority Act.
6    (b) There shall be imposed an additional tax upon hotel
7operators persons engaged in the business of renting, leasing
8or letting rooms in a hotel at the rate of 1% of 94% of the
9gross rental receipts it receives from engaging in the
10business as a hotel operator such renting, leasing or letting,
11excluding, however, from gross rental receipts, the proceeds
12of such renting, leasing or letting to permanent residents of
13that hotel and proceeds from the tax imposed under subsection
14(c) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act.
16    (b-5) Beginning on January 1, 2024, if the renting,
17leasing, or letting of a hotel room is done through a re-renter
18of hotel rooms who meets either of the following thresholds,
19then, subject to the provisions of Section 3-2 and 3-3, the
20re-renter is considered the hotel operator for the purposes of
21the taxes under subsections (a) and (b):
22        (1) the cumulative gross receipts from rentals in
23    Illinois by the re-renter of hotel rooms are $100,000 or
24    more; or
25        (2) the re-renter of hotel rooms cumulatively enters
26    into 200 or more separate transactions for rentals in

 

 

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1    Illinois.
2    A re-renter of hotel rooms shall determine on a quarterly
3basis, ending on the last day of March, June, September, and
4December, whether he or she meets the threshold of either
5paragraph (1) or (2) of this subsection (a-5) for the
6preceding 12-month period. If the re-renter of hotel rooms
7meets the threshold of either paragraph (1) or (2) for a
812-month period, he or she is subject to tax under this Act and
9is required to remit the tax imposed under this Act and file
10returns for the 12-month period beginning on the first day of
11the next month after he or she determines that he or she meets
12the threshold of paragraph (1) or (2). At the end of that
1312-month period, the re-renter of hotel rooms shall determine
14whether he or she continued to meet the threshold of either
15paragraph (1) or (2) during the preceding 12-month period. If
16he or she met the threshold in either paragraph (1) or (2) for
17the preceding 12-month period, he or she is considered a hotel
18operator in this State and is required to remit the tax imposed
19under this Act and file returns for the subsequent 12-month
20period. If, at the end of a 12-month period during which a
21re-renter is required to remit the tax imposed under this Act,
22the re-renter determines that he or she did not meet the
23threshold in either paragraph (1) or (2) during the preceding
2412-month period, he or she shall subsequently determine on a
25quarterly basis, ending on the last day of March, June,
26September, and December, whether he or she meets the threshold

 

 

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

 

 

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

 

 

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1which are subject to tax under this Act, collects more from the
2guest customer than the operators' hotel operators' occupation
3tax liability in the transaction is, the guest customer shall
4have a legal right to claim a refund of such amount from such
5operator. However, if such amount is not refunded to the guest
6customer for any reason, the hotel operator is liable to pay
7such amount to the Department.
8(Source: P.A. 100-213, eff. 8-18-17.)
 
9    (35 ILCS 145/3-2 new)
10    Sec. 3-2. No resale exemption; tax incurred by re-renters
11of hotel rooms. A hotel operator who rents, leases, or lets
12rooms subject to tax under this Act to a re-renter of hotel
13rooms incurs the tax under this Act on the gross rental
14receipts it receives from that re-renter of hotel rooms and
15cannot claim any resale exemption. In such situations, the
16re-renter of hotel rooms incurs tax under this Act on its gross
17rental receipts as provided in Section 3 of this Act.
 
18    (35 ILCS 145/3-3 new)
19    Sec. 3-3. Re-renter of hotel rooms; credit for tax
20reimbursement. A re-renter of hotel rooms may take a credit
21against the tax it incurs on the rental of a hotel room under
22this Act for the amount it paid under subsection (f) of Section
233 of this Act to a hotel operator as reimbursement for the tax
24incurred under this Act for the rental of that room for the

 

 

SB2564- 28 -LRB103 31564 HLH 59703 b

1purposes of re-rental.
 
2    (35 ILCS 145/4)  (from Ch. 120, par. 481b.34)
3    Sec. 4. Books and records. Every operator shall keep
4separate books or records of his business as an operator so as
5to show the rents and occupancies taxable under this Act
6separately from his transactions not taxable under this Act.
7If any operator fails to keep such separate books or records,
8he shall be liable to tax at the rate designated in Section 3
9hereof upon the entire proceeds from his business hotel. The
10Department may adopt rules that establish requirements,
11including record forms and formats, for records required to be
12kept and maintained by taxpayers. For purposes of this
13Section, "records" means all data maintained by the taxpayer,
14including data on paper, microfilm, microfiche or any type of
15machine-sensible data compilation.
16(Source: P.A. 88-480.)
 
17    (35 ILCS 145/5)  (from Ch. 120, par. 481b.35)
18    Sec. 5. Certificate of registration; retailers' occupation
19tax registration provisions apply. It shall be unlawful for
20any person to engage in the business as a hotel operator of
21renting, leasing or letting rooms in a hotel in this State
22without a certificate of registration from the Department.
23    All of the provisions of Sections 2a and 2b of the
24Retailers' Occupation Tax Act, in effect on the effective date

 

 

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1of this Act, as subsequently amended, shall apply to persons
2in the business as hotel operators of renting, leasing or
3letting rooms in a hotel in this State, to the same extent as
4if such provisions were included herein.
5(Source: Laws 1961, p. 1728.)
 
6    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
7    Sec. 6. Returns; allocation of proceeds Filing of returns
8and distribution of proceeds. Except as provided hereinafter
9in this Section, on or before the last day of each calendar
10month, every person engaged as a hotel operator in the
11business of renting, leasing or letting rooms in a hotel in
12this State during the preceding calendar month shall file a
13return with the Department, stating:
14        1. The name of the operator;
15        2. His residence address and the address of his
16    principal place of business and the address of the
17    principal place of business (if that is a different
18    address) from which he engages in the business as a hotel
19    operator of renting, leasing or letting rooms in a hotel
20    in this State (including, if required by the Department,
21    the address of each hotel from which rental receipts were
22    received);
23        3. Total amount of rental receipts received by him
24    during the preceding calendar month from engaging in
25    business as a hotel operator renting, leasing or letting

 

 

SB2564- 30 -LRB103 31564 HLH 59703 b

1    rooms during such preceding calendar month;
2        4. Total amount of rental receipts received by him
3    during the preceding calendar month from renting, leasing
4    or letting rooms to permanent residents during such
5    preceding calendar month;
6        5. Total amount of other exclusions from gross rental
7    receipts allowed by this Act;
8        6. Gross rental receipts which were received by him
9    during the preceding calendar month and upon the basis of
10    which the tax is imposed;
11        7. The amount of tax due;
12        8. Credit for any reimbursement of tax paid by a
13    re-renter of hotel rooms to hotel operators for rentals
14    purchased for re-rental, as provided in Section 3-3 of
15    this Act;
16        9. 8. Such other reasonable information as the
17    Department 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;
24with the return for July, August and September of a given year
25being due by October 31 of such year, and with the return for
26October, November and December of a given year being due by

 

 

SB2564- 31 -LRB103 31564 HLH 59703 b

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
8monthly returns.
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 engaging in business as a hotel operator the
24renting, leasing or letting of rooms in the course of his
25business and he shall include such value in his return. Such
26determination shall be subject to review and revision by the

 

 

SB2564- 32 -LRB103 31564 HLH 59703 b

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

 

 

SB2564- 33 -LRB103 31564 HLH 59703 b

1actually due, and that operator shall be liable for penalties
2and interest on such difference.
3    There shall be deposited in the Build Illinois Fund in the
4State Treasury for each State fiscal year 40% of the amount of
5total net proceeds from the tax imposed by subsection (a) of
6Section 3. Of the remaining 60%, $5,000,000 shall be deposited
7in the Illinois Sports Facilities Fund and credited to the
8Subsidy Account each fiscal year by making monthly deposits in
9the amount of 1/8 of $5,000,000 plus cumulative deficiencies
10in such deposits for prior months, and an additional
11$8,000,000 shall be deposited in the Illinois Sports
12Facilities Fund and credited to the Advance Account each
13fiscal year by making monthly deposits in the amount of 1/8 of
14$8,000,000 plus any cumulative deficiencies in such deposits
15for prior months; provided, that for fiscal years ending after
16June 30, 2001, the amount to be so deposited into the Illinois
17Sports Facilities Fund and credited to the Advance Account
18each fiscal year shall be increased from $8,000,000 to the
19then applicable Advance Amount and the required monthly
20deposits beginning with July 2001 shall be in the amount of 1/8
21of the then applicable Advance Amount plus any cumulative
22deficiencies in those deposits for prior months. (The deposits
23of the additional $8,000,000 or the then applicable Advance
24Amount, as applicable, during each fiscal year shall be
25treated as advances of funds to the Illinois Sports Facilities
26Authority for its corporate purposes to the extent paid to the

 

 

SB2564- 34 -LRB103 31564 HLH 59703 b

1Authority or its trustee and shall be repaid into the General
2Revenue Fund in the State Treasury by the State Treasurer on
3behalf of the Authority pursuant to Section 19 of the Illinois
4Sports Facilities Authority Act, as amended. If in any fiscal
5year the full amount of the then applicable Advance Amount is
6not repaid into the General Revenue Fund, then the deficiency
7shall be paid from the amount in the Local Government
8Distributive Fund that would otherwise be allocated to the
9City of Chicago under the State Revenue Sharing Act.)
10    For purposes of the foregoing paragraph, the term "Advance
11Amount" means, for fiscal year 2002, $22,179,000, and for
12subsequent fiscal years through fiscal year 2033, 105.615% of
13the Advance Amount for the immediately preceding fiscal year,
14rounded up to the nearest $1,000.
15    Of the remaining 60% of the amount of total net proceeds
16prior to August 1, 2011 from the tax imposed by subsection (a)
17of Section 3 after all required deposits in the Illinois
18Sports Facilities Fund, the amount equal to 8% of the net
19revenue realized from this Act plus an amount equal to 8% of
20the net revenue realized from any tax imposed under Section
214.05 of the Chicago World's Fair-1992 Authority Act during the
22preceding month shall be deposited in the Local Tourism Fund
23each month for purposes authorized by Section 605-705 of the
24Department of Commerce and Economic Opportunity Law (20 ILCS
25605/605-705). Of the remaining 60% of the amount of total net
26proceeds beginning on August 1, 2011 from the tax imposed by

 

 

SB2564- 35 -LRB103 31564 HLH 59703 b

1subsection (a) of Section 3 after all required deposits in the
2Illinois Sports Facilities Fund, an amount equal to 8% of the
3net revenue realized from this Act plus an amount equal to 8%
4of the net revenue realized from any tax imposed under Section
54.05 of the Chicago World's Fair-1992 Authority Act during the
6preceding month shall be deposited as follows: 18% of such
7amount shall be deposited into the Chicago Travel Industry
8Promotion Fund for the purposes described in subsection (n) of
9Section 5 of the Metropolitan Pier and Exposition Authority
10Act and the remaining 82% of such amount shall be deposited
11into the Local Tourism Fund each month for purposes authorized
12by Section 605-705 of the Department of Commerce and Economic
13Opportunity Law. Beginning on August 1, 1999 and ending on
14July 31, 2011, an amount equal to 4.5% of the net revenue
15realized from the Hotel Operators' Occupation Tax Act during
16the preceding month shall be deposited into the International
17Tourism Fund for the purposes authorized in Section 605-707 of
18the Department of Commerce and Economic Opportunity Law.
19Beginning on August 1, 2011, an amount equal to 4.5% of the net
20revenue realized from this Act during the preceding month
21shall be deposited as follows: 55% of such amount shall be
22deposited into the Chicago Travel Industry Promotion Fund for
23the purposes described in subsection (n) of Section 5 of the
24Metropolitan Pier and Exposition Authority Act and the
25remaining 45% of such amount deposited into the International
26Tourism Fund for the purposes authorized in Section 605-707 of

 

 

SB2564- 36 -LRB103 31564 HLH 59703 b

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

 

 

SB2564- 37 -LRB103 31564 HLH 59703 b

1by such return and any additional reasonable information which
2the Department deems would be helpful in determining the
3accuracy of the monthly, quarterly or annual tax returns by
4such operator as hereinbefore provided for in this Section.
5    If the annual information return required by this Section
6is not filed when and as required the taxpayer shall be liable
7for a penalty in an amount determined in accordance with
8Section 3-4 of the Uniform Penalty and Interest Act until such
9return is filed as required, the penalty to be assessed and
10collected in the same manner as any other penalty provided for
11in this Act.
12    The chief executive officer, proprietor, owner or highest
13ranking manager shall sign the annual return to certify the
14accuracy of the information contained therein. Any person who
15willfully signs the annual return containing false or
16inaccurate information shall be guilty of perjury and punished
17accordingly. The annual return form prescribed by the
18Department shall include a warning that the person signing the
19return may be liable for perjury.
20    The foregoing portion of this Section concerning the
21filing of an annual information return shall not apply to an
22operator who is not required to file an income tax return with
23the United States Government.
24(Source: P.A. 102-16, eff. 6-17-21.)
 
25    Section 905. The Counties Code is amended by changing

 

 

SB2564- 38 -LRB103 31564 HLH 59703 b

1Section 5-1030 as follows:
 
2    (55 ILCS 5/5-1030)  (from Ch. 34, par. 5-1030)
3    Sec. 5-1030. Hotel rooms, short-term rentals, tax on gross
4rental receipts.
5    (a) The corporate authorities of any county may by
6ordinance impose a tax upon all persons engaged in such county
7in the business of renting, leasing or letting rooms in a hotel
8or short-term rental which is not located within a city,
9village, or incorporated town that imposes a tax under Section
108-3-14 of the Illinois Municipal Code, as defined in the "The
11Hotel Operators' Occupation Tax Act or the Short-Term Rental
12Occupation Tax Act ", at a rate not to exceed 5% of the gross
13rental receipts from such renting, leasing or letting,
14excluding, however, from gross rental receipts, the proceeds
15of such renting, leasing or letting to permanent residents of
16that hotel or short-term rental, and may provide for the
17administration and enforcement of the tax, and for the
18collection thereof from the persons subject to the tax, as the
19corporate authorities determine to be necessary or practicable
20for the effective administration of the tax.
21    (b) With the consent of municipalities representing at
22least 67% of the population of Winnebago County, as determined
23by the 2010 federal decennial census and as expressed by
24resolution of the corporate authorities of those
25municipalities, the county board of Winnebago County may, by

 

 

SB2564- 39 -LRB103 31564 HLH 59703 b

1ordinance, impose a tax upon all persons engaged in the county
2in the business of renting, leasing, or letting rooms in a
3hotel or short-term rental that imposes a tax under Section
48-3-14 of the Illinois Municipal Code, as defined in the "The
5Hotel Operators' Occupation Tax Act" or the Short-Term Rental
6Occupation Tax Act, at a rate not to exceed 2% of the gross
7rental receipts from renting, leasing, or letting, excluding,
8however, from gross rental receipts, the proceeds of the
9renting, leasing, or letting to permanent residents of that
10hotel or short-term rental, and may provide for the
11administration and enforcement of the tax, and for the
12collection thereof from the persons subject to the tax, as the
13county board determines to be necessary or practicable for the
14effective administration of the tax. The tax shall be
15instituted on a county-wide basis and shall be in addition to
16any tax imposed by this or any other provision of law. The
17revenue generated under this subsection shall be accounted for
18and segregated from all other funds of the county and shall be
19utilized solely for either: (1) encouraging, supporting,
20marketing, constructing, or operating, either directly by the
21county or through other taxing bodies within the county,
22sports, arts, or other entertainment or tourism facilities or
23programs for the purpose of promoting tourism,
24competitiveness, job growth, and for the general health and
25well-being of the citizens of the county; or (2) payment
26towards debt services on bonds issued for the purposes set

 

 

SB2564- 40 -LRB103 31564 HLH 59703 b

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

 

 

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

 

 

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1law and the territory of which unit of local government or
2authority is co-extensive with or wholly within such county,
3to impose and collect for a period not to exceed 40 years, any
4portion or all of the tax authorized pursuant to this Section
5and to transmit such tax so collected to such unit of local
6government or authority. The amount so paid shall be expended
7by any such unit of local government or authority for the
8purposes for which such tax is authorized. Any such agreement
9must be authorized by resolution or ordinance, as the case may
10be, of such county and unit of local government or authority,
11and such agreement may provide for the irrevocable imposition
12and collection of said tax at such rate, or amount as limited
13by a given rate, as may be agreed upon for the full period of
14time set forth in such agreement; and such agreement may
15further provide for any other terms as deemed necessary or
16advisable by such county and such unit of local government or
17authority. Any such agreement shall be binding and enforceable
18by either party to such agreement. Such agreement entered into
19pursuant to this Section shall not in any event constitute an
20indebtedness of such county subject to any limitation imposed
21by statute or otherwise.
22(Source: P.A. 98-313, eff. 8-12-13.)
 
23    Section 910. The Illinois Municipal Code is amended by
24changing Sections 8-3-13, 8-3-14, and 8-3-14a as follows:
 

 

 

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1    (65 ILCS 5/8-3-13)  (from Ch. 24, par. 8-3-13)
2    Sec. 8-3-13. The corporate authorities of any municipality
3containing 500,000 or more inhabitants may impose a tax prior
4to July 1, 1969, upon all persons engaged in the municipality
5in the business of renting, leasing or letting rooms in a
6hotel, as defined in the Hotel Operators' Occupation Tax Act,
7or a short-term rental, as defined in the Short-Term Rental
8Occupation Tax Act, at a rate not to exceed 1% of the gross
9rental receipts from the renting, leasing or letting,
10excluding, however, from gross rental receipts, the proceeds
11of the renting, leasing or letting to permanent residents of
12that hotel or short-term rental and proceeds from the tax
13imposed under subsection (c) of Section 13 of the Metropolitan
14Pier and Exposition Authority Act.
15    The tax imposed by a municipality under this Section and
16all civil penalties that may be assessed as an incident
17thereof shall be collected and enforced by the State
18Department of Revenue. The certificate of registration that is
19issued by the Department to a lessor under the Hotel
20Operators' Occupation Tax Act, or a business license issued by
21the Department under the Short-Term Rental Occupation Tax Act,
22shall permit the registrant to engage in a business that is
23taxable under any ordinance or resolution enacted under this
24Section without registering separately with the Department
25under the ordinance or resolution or under this Section. The
26Department shall have full power to administer and enforce

 

 

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

 

 

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

 

 

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

 

 

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1change or discontinuance. The amounts disbursed to any
2municipality under this Section shall be expended by the
3municipality solely to promote tourism, conventions and other
4special events within that municipality or otherwise to
5attract nonresidents to visit the municipality.
6    Any municipality receiving and disbursing money under this
7Section shall report on or before the first Monday in January
8of each year to the Advisory Committee of the Illinois Tourism
9Promotion Fund, created by Section 12 of the Illinois
10Promotion Act. The reports shall specify the purposes for
11which the disbursements were made and shall contain detailed
12amounts of all receipts and disbursements under this Section.
13    This Section may be cited as the Tourism, Conventions and
14Other Special Events Promotion Act of 1967.
15(Source: P.A. 87-205; 87-733; 87-895.)
 
16    (65 ILCS 5/8-3-14)  (from Ch. 24, par. 8-3-14)
17    Sec. 8-3-14. Municipal hotel and short-term rental
18operators' occupation tax. The corporate authorities of any
19municipality may impose a tax upon all persons engaged in such
20municipality in the business of renting, leasing or letting
21rooms in a hotel, as defined in the "The Hotel Operators'
22Occupation Tax Act," or a short-term rental, as defined in the
23Short-Term Rental Occupation Tax Act, at a rate not to exceed
246% in the City of East Peoria and in the Village of Morton and
255% in all other municipalities of the gross rental receipts

 

 

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

 

 

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

 

 

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1to any rental or lease payment by a permanent resident of that
2hotel or short-term rental or to any payment made to any hotel
3that is subject to the tax imposed under subsection (c) of
4Section 13 of the Metropolitan Pier and Exposition Authority
5Act. A municipality may not impose a tax under this Section if
6it imposes a tax under Section 8-3-14. Nothing in this Section
7may be construed to authorize a municipality to impose a tax
8upon the privilege of engaging in any business that under the
9Constitution of the United States may not be made the subject
10of taxation by this State.
11    (d) Except as otherwise provided in this Division, the
12moneys collected by a municipality under this Section may be
13expended solely to promote tourism and conventions within that
14municipality or otherwise to attract nonresident overnight
15visitors to the municipality. No moneys received under this
16Section may be used to advertise for or otherwise promote new
17competition in the hotel business.
18    (e) As used in this Section, "hotel" has the meaning set
19forth in Section 2 of the Hotel Operators' Occupation Tax Act.
20    (f) As used in this Section, "short-term rental" and
21"hosting platform" have the meanings set forth in Section 5 of
22the Short-Term Rental Occupation Tax Act.
23(Source: P.A. 101-204, eff. 8-2-19.)
 
24    Section 999. Effective date. This Act takes effect January
251, 2024.