98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5934

 

Introduced , by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 665/4a  from Ch. 127, par. 200-24a
35 ILCS 145/6  from Ch. 120, par. 481b.36

    Amends the Illinois Promotion Act. Provides that one-third of the monies deposited in the Tourism Promotion Fund under the Hotel Operators' Occupation Tax shall be used solely for advertising to promote tourism. Deletes a provision that 8% and 13% of the net revenue realized from the Hotel Operators' Occupation Tax Act shall be deposited into the Tourism Promotion Fund. Amends the Hotel Operators' Occupation Tax Act. Provides that beginning on July 1, 2014, an amount equal to 21% of the net revenue realized from that Act during the preceding month shall be deposited to the Tourism Promotion Fund for the purposes authorized in the Illinois Promotion Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5934LRB098 19484 OMW 54656 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Promotion Act is amended by
5changing Section 4a as follows:
 
6    (20 ILCS 665/4a)  (from Ch. 127, par. 200-24a)
7    Sec. 4a. Funds.
8    (1) All moneys deposited in the Tourism Promotion Fund
9pursuant to this subsection are allocated to the Department for
10utilization, as appropriated, in the performance of its powers
11under Section 4; except that during fiscal year 2013, the
12Department shall reserve $9,800,000 of the total funds
13available for appropriation in the Tourism Promotion Fund for
14appropriation to the Historic Preservation Agency for the
15operation of the Abraham Lincoln Presidential Library and
16Museum and State historic sites.
17    As soon as possible after the first day of each month,
18beginning July 1, 1997, upon certification of the Department of
19Revenue, the Comptroller shall order transferred and the
20Treasurer shall transfer from the General Revenue Fund to the
21Tourism Promotion Fund an amount equal to 13% of the net
22revenue realized from the Hotel Operators' Occupation Tax Act
23plus an amount equal to 13% of the net revenue realized from

 

 

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1any tax imposed under Section 4.05 of the Chicago World's
2Fair-1992 Authority Act during the preceding month. "Net
3revenue realized for a month" means the revenue collected by
4the State under that Act during the previous month less the
5amount paid out during that same month as refunds to taxpayers
6for overpayment of liability under that Act.
7    (1.1) (Blank).
8    (2) As soon as possible after the first day of each month,
9beginning July 1, 1997, upon certification of the Department of
10Revenue, the Comptroller shall order transferred and the
11Treasurer shall transfer from the General Revenue Fund to the
12Tourism Promotion Fund an amount equal to 8% of the net revenue
13realized from the Hotel Operators' Occupation Tax plus an
14amount equal to 8% of the net revenue realized from any tax
15imposed under Section 4.05 of the Chicago World's Fair-1992
16Authority Act during the preceding month. "Net revenue realized
17for a month" means the revenue collected by the State under
18that Act during the previous month less the amount paid out
19during that same month as refunds to taxpayers for overpayment
20of liability under that Act.
21    All monies deposited in the Tourism Promotion Fund under
22this subsection (2) shall be used solely as provided in this
23subsection to advertise and promote tourism throughout
24Illinois. Appropriations of monies deposited in the Tourism
25Promotion Fund pursuant to this subsection (2) and one-third of
26the monies deposited in the Tourism Promotion Fund pursuant to

 

 

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1Section 6 of the Hotel Operators' Occupation Tax Act shall be
2used solely for advertising to promote tourism, including but
3not limited to advertising production and direct advertisement
4costs, but shall not be used to employ any additional staff,
5finance any individual event, or lease, rent or purchase any
6physical facilities. The Department shall coordinate its
7advertising under this subsection (2) and one-third of the
8monies deposited in the Tourism Promotion Fund pursuant to
9Section 6 of the Hotel Operators' Occupation Tax Act with other
10public and private entities in the State engaged in similar
11promotion activities. Print or electronic media production
12made pursuant to this subsection (2) for advertising promotion
13shall not contain or include the physical appearance of or
14reference to the name or position of any public officer.
15"Public officer" means a person who is elected to office
16pursuant to statute, or who is appointed to an office which is
17established, and the qualifications and duties of which are
18prescribed, by statute, to discharge a public duty for the
19State or any of its political subdivisions.
20    (3) Notwithstanding anything in this Section to the
21contrary, amounts transferred from the General Revenue Fund to
22the Tourism Promotion Fund pursuant to this Section shall not
23exceed $26,300,000 in State fiscal year 2012.
24(Source: P.A. 97-641, eff. 12-19-11; 97-732, eff. 6-30-12.)
 
25    Section 10. The Hotel Operators' Occupation Tax Act is

 

 

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

 

 

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1        7. The amount of tax due;
2        8. Such other reasonable information as the Department
3    may require.
4    If the operator's average monthly tax liability to the
5Department does not exceed $200, the Department may authorize
6his returns to be filed on a quarter annual basis, with the
7return for January, February and March of a given year being
8due by April 30 of such year; with the return for April, May
9and June of a given year being due by July 31 of such year; with
10the return for July, August and September of a given year being
11due by October 31 of such year, and with the return for
12October, November and December of a given year being due by
13January 31 of the following year.
14    If the operator's average monthly tax liability to the
15Department does not exceed $50, the Department may authorize
16his returns to be filed on an annual basis, with the return for
17a given year being due by January 31 of the following year.
18    Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as monthly
20returns.
21    Notwithstanding any other provision in this Act concerning
22the time within which an operator may file his return, in the
23case of any operator who ceases to engage in a kind of business
24which makes him responsible for filing returns under this Act,
25such operator shall file a final return under this Act with the
26Department not more than 1 month after discontinuing such

 

 

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1business.
2    Where the same person has more than 1 business registered
3with the Department under separate registrations under this
4Act, such person shall not file each return that is due as a
5single return covering all such registered businesses, but
6shall file separate returns for each such registered business.
7    In his return, the operator shall determine the value of
8any consideration other than money received by him in
9connection with the renting, leasing or letting of rooms in the
10course of his business and he shall include such value in his
11return. Such determination shall be subject to review and
12revision by the Department in the manner hereinafter provided
13for the correction of returns.
14    Where the operator is a corporation, the return filed on
15behalf of such corporation shall be signed by the president,
16vice-president, secretary or treasurer or by the properly
17accredited agent of such corporation.
18    The person filing the return herein provided for shall, at
19the time of filing such return, pay to the Department the
20amount of tax herein imposed. The operator filing the return
21under this Section shall, at the time of filing such return,
22pay to the Department the amount of tax imposed by this Act
23less a discount of 2.1% or $25 per calendar year, whichever is
24greater, which is allowed to reimburse the operator for the
25expenses incurred in keeping records, preparing and filing
26returns, remitting the tax and supplying data to the Department

 

 

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1on request.
2    There shall be deposited in the Build Illinois Fund in the
3State Treasury for each State fiscal year 40% of the amount of
4total net proceeds from the tax imposed by subsection (a) of
5Section 3. Of the remaining 60%, $5,000,000 shall be deposited
6in the Illinois Sports Facilities Fund and credited to the
7Subsidy Account each fiscal year by making monthly deposits in
8the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
9such deposits for prior months, and an additional $8,000,000
10shall be deposited in the Illinois Sports Facilities Fund and
11credited to the Advance Account each fiscal year by making
12monthly deposits in the amount of 1/8 of $8,000,000 plus any
13cumulative deficiencies in such deposits for prior months;
14provided, that for fiscal years ending after June 30, 2001, the
15amount to be so deposited into the Illinois Sports Facilities
16Fund and credited to the Advance Account each fiscal year shall
17be increased from $8,000,000 to the then applicable Advance
18Amount and the required monthly deposits beginning with July
192001 shall be in the amount of 1/8 of the then applicable
20Advance Amount plus any cumulative deficiencies in those
21deposits for prior months. (The deposits of the additional
22$8,000,000 or the then applicable Advance Amount, as
23applicable, during each fiscal year shall be treated as
24advances of funds to the Illinois Sports Facilities Authority
25for its corporate purposes to the extent paid to the Authority
26or its trustee and shall be repaid into the General Revenue

 

 

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1Fund in the State Treasury by the State Treasurer on behalf of
2the Authority pursuant to Section 19 of the Illinois Sports
3Facilities Authority Act, as amended. If in any fiscal year the
4full amount of the then applicable Advance Amount is not repaid
5into the General Revenue Fund, then the deficiency shall be
6paid from the amount in the Local Government Distributive Fund
7that would otherwise be allocated to the City of Chicago under
8the State Revenue Sharing Act.)
9    For purposes of the foregoing paragraph, the term "Advance
10Amount" means, for fiscal year 2002, $22,179,000, and for
11subsequent fiscal years through fiscal year 2032, 105.615% of
12the Advance Amount for the immediately preceding fiscal year,
13rounded up to the nearest $1,000.
14    Of the remaining 60% of the amount of total net proceeds
15prior to August 1, 2011 from the tax imposed by subsection (a)
16of Section 3 after all required deposits in the Illinois Sports
17Facilities Fund, the amount equal to 8% of the net revenue
18realized from this Act plus an amount equal to 8% of the net
19revenue realized from any tax imposed under Section 4.05 of the
20Chicago World's Fair-1992 Authority Act during the preceding
21month shall be deposited in the Local Tourism Fund each month
22for purposes authorized by Section 605-705 of the Department of
23Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
24the remaining 60% of the amount of total net proceeds beginning
25on August 1, 2011 from the tax imposed by subsection (a) of
26Section 3 after all required deposits in the Illinois Sports

 

 

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1Facilities Fund, an amount equal to 8% of the net revenue
2realized from this Act plus an amount equal to 8% of the net
3revenue realized from any tax imposed under Section 4.05 of the
4Chicago World's Fair-1992 Authority Act during the preceding
5month shall be deposited as follows: 18% of such amount shall
6be deposited into the Chicago Travel Industry Promotion Fund
7for the purposes described in subsection (n) of Section 5 of
8the Metropolitan Pier and Exposition Authority Act and the
9remaining 82% of such amount shall be deposited into the Local
10Tourism Fund each month for purposes authorized by Section
11605-705 of the Department of Commerce and Economic Opportunity
12Law. Beginning on August 1, 1999 and ending on July 31, 2011,
13an amount equal to 4.5% of the net revenue realized from the
14Hotel Operators' Occupation Tax Act during the preceding month
15shall be deposited into the International Tourism Fund for the
16purposes authorized in Section 605-707 of the Department of
17Commerce and Economic Opportunity Law. Beginning on August 1,
182011, an amount equal to 4.5% of the net revenue realized from
19this Act during the preceding month shall be deposited as
20follows: 55% of such amount shall be deposited into the Chicago
21Travel Industry Promotion Fund for the purposes described in
22subsection (n) of Section 5 of the Metropolitan Pier and
23Exposition Authority Act and the remaining 45% of such amount
24deposited into the International Tourism Fund for the purposes
25authorized in Section 605-707 of the Department of Commerce and
26Economic Opportunity Law. Beginning on July 1, 2014, an amount

 

 

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

 

 

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1return to the Department shall also disclose pay roll
2information of the operator's business during the year covered
3by such return and any additional reasonable information which
4the Department deems would be helpful in determining the
5accuracy of the monthly, quarterly or annual tax returns by
6such operator as hereinbefore provided for in this Section.
7    If the annual information return required by this Section
8is not filed when and as required the taxpayer shall be liable
9for a penalty in an amount determined in accordance with
10Section 3-4 of the Uniform Penalty and Interest Act until such
11return is filed as required, the penalty to be assessed and
12collected in the same manner as any other penalty provided for
13in this Act.
14    The chief executive officer, proprietor, owner or highest
15ranking manager shall sign the annual return to certify the
16accuracy of the information contained therein. Any person who
17willfully signs the annual return containing false or
18inaccurate information shall be guilty of perjury and punished
19accordingly. The annual return form prescribed by the
20Department shall include a warning that the person signing the
21return may be liable for perjury.
22    The foregoing portion of this Section concerning the filing
23of an annual information return shall not apply to an operator
24who is not required to file an income tax return with the
25United States Government.
26(Source: P.A. 97-617, eff. 10-26-11.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.