103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2638

 

Introduced 11/7/2023, by Sen. Julie A. Morrison

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-3-14a

    Amends the Illinois Municipal Code. Provides that moneys collected by a municipality from hotel use taxes may be expended to contribute to fund actuarial liabilities of the municipality's pension fund established under Article 3, 4, 5, or 6 of the Illinois Pension Code or Article 7 of the Illinois Pension Code with regard to sheriff's law enforcement employees if the municipality has not established a pension fund under Article 3, 4, 5, or 6 of the Illinois Pension Code.


LRB103 34585 AWJ 64423 b

 

 

A BILL FOR

 

SB2638LRB103 34585 AWJ 64423 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-3-14a as follows:
 
6    (65 ILCS 5/8-3-14a)
7    Sec. 8-3-14a. Municipal hotel use tax.
8    (a) The corporate authorities of any municipality may
9impose a tax upon the privilege of renting or leasing rooms in
10a hotel within the municipality at a rate not to exceed 5% of
11the rental or lease payment. The corporate authorities may
12provide for the administration and enforcement of the tax and
13for the collection thereof from the persons subject to the
14tax, as the corporate authorities determine to be necessary or
15practical for the effective administration of the tax.
16    (b) Each hotel in the municipality shall collect the tax
17from the person making the rental or lease payment at the time
18that the payment is tendered to the hotel. The hotel shall, as
19trustee, remit the tax to the municipality.
20    (c) The tax authorized under this Section does not apply
21to any rental or lease payment by a permanent resident of that
22hotel or to any payment made to any hotel that is subject to
23the tax imposed under subsection (c) of Section 13 of the

 

 

SB2638- 2 -LRB103 34585 AWJ 64423 b

1Metropolitan Pier and Exposition Authority Act. A municipality
2may not impose a tax under this Section if it imposes a tax
3under Section 8-3-14. Nothing in this Section may be construed
4to authorize a municipality to impose a tax upon the privilege
5of engaging in any business that under the Constitution of the
6United States may not be made the subject of taxation by this
7State.
8    (d) Except as otherwise provided in this Division, the
9moneys collected by a municipality under this Section may be
10expended solely to promote tourism and conventions within that
11municipality, or otherwise to attract nonresident overnight
12visitors to the municipality, or to contribute to fund
13actuarial liabilities of the municipality's pension fund
14established under Article 3, 4, 5, or 6 of the Illinois Pension
15Code or Article 7 of the Illinois Pension Code with regard to
16sheriff's law enforcement employees if the municipality has
17not established a pension fund under Article 3, 4, 5, or 6 of
18the Illinois Pension Code. No moneys received under this
19Section may be used to advertise for or otherwise promote new
20competition in the hotel business.
21    (e) As used in this Section, "hotel" has the meaning set
22forth in Section 2 of the Hotel Operators' Occupation Tax Act.
23(Source: P.A. 101-204, eff. 8-2-19.)