Illinois General Assembly - Full Text of HB3846
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Full Text of HB3846  101st General Assembly




State of Illinois
2019 and 2020


Introduced , by Rep. Kathleen Willis


55 ILCS 5/5-1030  from Ch. 34, par. 5-1030

    Amends the Counties Code. Provides that a county with at least 800,000 residents and less than 3,000,000 residents may also impose a hotel tax within a municipality that imposes a municipal hotel operators' occupation tax if the proceeds from the tax within such a municipality are expended to promote tourism and economic development in the county. Effective immediately.

LRB101 12649 AWJ 61174 b






HB3846LRB101 12649 AWJ 61174 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 Counties Code is amended by changing Section
55-1030 as follows:
6    (55 ILCS 5/5-1030)  (from Ch. 34, par. 5-1030)
7    Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
8    (a) The corporate authorities of any county may by
9ordinance impose a tax upon all persons engaged in such county
10in the business of renting, leasing or letting rooms in a hotel
11which, except as provided in subsection (a-5), is not located
12within a city, village, or incorporated town that imposes a tax
13under Section 8-3-14 of the Illinois Municipal Code, as defined
14in "The Hotel Operators' Occupation Tax Act", at a rate not to
15exceed 5% of the gross rental receipts from such renting,
16leasing or letting, excluding, however, from gross rental
17receipts, the proceeds of such renting, leasing or letting to
18permanent residents of that hotel, and may provide for the
19administration and enforcement of the tax, and for the
20collection thereof from the persons subject to the tax, as the
21corporate authorities determine to be necessary or practicable
22for the effective administration of the tax.
23    (a-5) A county with at least 800,000 residents and fewer



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1than 3,000,000 residents may also impose the tax provided for
2in subsection (a) on persons engaged in the county in the
3business of renting, leasing, or letting rooms in a hotel
4within a municipality that imposes a tax under Section 8-3-14
5of the Illinois Municipal Code if the proceeds from the tax
6imposed under this subsection (a-5) within such a municipality
7are expended to promote tourism and economic development in the
9    (b) With the consent of municipalities representing at
10least 67% of the population of Winnebago County, as determined
11by the 2010 federal decennial census and as expressed by
12resolution of the corporate authorities of those
13municipalities, the county board of Winnebago County may, by
14ordinance, impose a tax upon all persons engaged in the county
15in the business of renting, leasing, or letting rooms in a
16hotel that imposes a tax under Section 8-3-14 of the Illinois
17Municipal Code, as defined in "The Hotel Operators' Occupation
18Tax Act", at a rate not to exceed 2% of the gross rental
19receipts from renting, leasing, or letting, excluding,
20however, from gross rental receipts, the proceeds of the
21renting, leasing, or letting to permanent residents of that
22hotel, and may provide for the administration and enforcement
23of the tax, and for the collection thereof from the persons
24subject to the tax, as the county board determines to be
25necessary or practicable for the effective administration of
26the tax. The tax shall be instituted on a county-wide basis and



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1shall be in addition to any tax imposed by this or any other
2provision of law. The revenue generated under this subsection
3shall be accounted for and segregated from all other funds of
4the county and shall be utilized solely for either: (1)
5encouraging, supporting, marketing, constructing, or
6operating, either directly by the county or through other
7taxing bodies within the county, sports, arts, or other
8entertainment or tourism facilities or programs for the purpose
9of promoting tourism, competitiveness, job growth, and for the
10general health and well-being of the citizens of the county; or
11(2) payment towards debt services on bonds issued for the
12purposes set forth in this subsection.
13    (c) A Tourism Facility Board shall be established,
14comprised of a representative from the county and from each
15municipality that has approved the imposition of the tax under
16subsection (b) of this Section.
17        (1) A Board member's vote is weighted based on the
18    municipality's population relative to the population of
19    the county, with the county representing the population
20    within unincorporated areas of the county. Representatives
21    from the Rockford Park District and Rockford Area
22    Convention and Visitors Bureau shall serve as ex-officio
23    members with no voting rights.
24        (2) The Board must meet not less frequently than once
25    per year to direct the use of revenues collected from the
26    tax imposed under subsection (b) of this Section that are



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1    not already directed for use pursuant to an
2    intergovernmental agreement between the county and another
3    entity represented on the Board, including the ex-officio
4    members, and for any other reason the Board deems
5    necessary. Affirmative actions of the Board shall require a
6    weighted vote of Board members representing not less than
7    67% of the population of the county.
8        (3) The Board shall not be a separate unit of local
9    government, shall have no paid staff, and members of the
10    Board shall receive no compensation or reimbursement of
11    expenses from proceeds of the tax imposed under subsection
12    (b) of this Section.
13    (d) Persons subject to any tax imposed pursuant to
14authority granted by this Section may reimburse themselves for
15their tax liability for such tax by separately stating such tax
16as an additional charge, which charge may be stated in
17combination, in a single amount, with State tax imposed under
18"The Hotel Operators' Occupation Tax Act".
19    Nothing in this Section shall be construed to authorize a
20county to impose a tax upon the privilege of engaging in any
21business which under the Constitution of the United States may
22not be made the subject of taxation by this State.
23    An ordinance or resolution imposing a tax hereunder or
24effecting a change in the rate thereof shall be effective on
25the first day of the calendar month next following its passage
26and required publication.



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1    The amounts collected by any county pursuant to this
2Section shall be expended to promote tourism; conventions;
3expositions; theatrical, sports and cultural activities within
4that county or otherwise to attract nonresident overnight
5visitors to the county.
6    Any county may agree with any unit of local government,
7including any authority defined as a metropolitan exposition,
8auditorium and office building authority, fair and exposition
9authority, exposition and auditorium authority, or civic
10center authority created pursuant to provisions of Illinois law
11and the territory of which unit of local government or
12authority is co-extensive with or wholly within such county, to
13impose and collect for a period not to exceed 40 years, any
14portion or all of the tax authorized pursuant to this Section
15and to transmit such tax so collected to such unit of local
16government or authority. The amount so paid shall be expended
17by any such unit of local government or authority for the
18purposes for which such tax is authorized. Any such agreement
19must be authorized by resolution or ordinance, as the case may
20be, of such county and unit of local government or authority,
21and such agreement may provide for the irrevocable imposition
22and collection of said tax at such rate, or amount as limited
23by a given rate, as may be agreed upon for the full period of
24time set forth in such agreement; and such agreement may
25further provide for any other terms as deemed necessary or
26advisable by such county and such unit of local government or



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1authority. Any such agreement shall be binding and enforceable
2by either party to such agreement. Such agreement entered into
3pursuant to this Section shall not in any event constitute an
4indebtedness of such county subject to any limitation imposed
5by statute or otherwise.
6(Source: P.A. 98-313, eff. 8-12-13.)
7    Section 99. Effective date. This Act takes effect upon
8becoming law.