Full Text of HB2918 101st General Assembly
HB2918 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2918 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED: |
| 35 ILCS 145/3 | from Ch. 120, par. 481b.33 | 35 ILCS 145/6 | from Ch. 120, par. 481b.36 | 30 ILCS 105/5.891 new | |
|
Amends the Hotel Operators' Occupation Tax Act. Provides that an additional tax shall be imposed at the rate of 1% of 94% of the gross rental
receipts from the renting, leasing, or letting of hotel rooms. Provides that the proceeds from the additional tax shall be deposited into the Illinois Experience Fund. Provides that moneys in the Illinois Experience Fund shall be used to create, enhance, and promote artistic and cultural events and expositions in the State. Amends the State Finance Act to create the Fund. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB2918 | | LRB101 09921 HLH 55023 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Hotel Operators' Occupation Tax Act is | 5 | | amended by changing Sections 3 and 6 as follows:
| 6 | | (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
| 7 | | Sec. 3. Rate; exemptions.
| 8 | | (a) A tax is imposed upon persons engaged in the business | 9 | | of renting,
leasing or letting rooms in a hotel at the rate of | 10 | | 5% of 94% of the gross
rental receipts from such renting, | 11 | | leasing or letting, excluding, however,
from gross rental | 12 | | receipts, the proceeds of such renting, leasing or
letting to | 13 | | permanent residents of that hotel and proceeds from the tax
| 14 | | imposed under subsection (c) of Section 13 of the Metropolitan | 15 | | Pier and
Exposition Authority Act.
| 16 | | (b) There shall be imposed an
additional tax upon persons | 17 | | engaged in the business of renting, leasing or
letting rooms in | 18 | | a hotel at the rate of 1% of 94% of the gross rental
receipts | 19 | | from such renting, leasing or letting, excluding, however, from
| 20 | | gross rental receipts, the proceeds of such renting, leasing or | 21 | | letting to
permanent residents of that hotel and proceeds from | 22 | | the tax imposed under
subsection (c) of Section 13 of the | 23 | | Metropolitan Pier and Exposition
Authority Act.
|
| | | HB2918 | - 2 - | LRB101 09921 HLH 55023 b |
|
| 1 | | (b-5) Beginning on July 1, 2019, there shall be imposed an
| 2 | | additional tax upon persons engaged in the business of renting, | 3 | | leasing, or
letting rooms in a hotel at the rate of 1% of 94% of | 4 | | the gross rental
receipts from such renting, leasing, or | 5 | | letting, excluding, however, from
gross rental receipts, the | 6 | | proceeds of such renting, leasing, or letting to
permanent | 7 | | residents of that hotel and proceeds from the tax imposed under
| 8 | | subsection (c) of Section 13 of the Metropolitan Pier and | 9 | | Exposition
Authority Act. | 10 | | (c) No funds received pursuant to this Act shall be used to
| 11 | | advertise for or otherwise promote new competition in the hotel | 12 | | business.
| 13 | | (d) However, such tax is not imposed upon the privilege of
| 14 | | engaging in any business in Interstate Commerce or otherwise,
| 15 | | which business may not, under the Constitution and Statutes of
| 16 | | the United States, be made the subject of taxation by this | 17 | | State.
In addition, the tax is not imposed upon gross rental | 18 | | receipts for which
the hotel operator is prohibited from | 19 | | obtaining reimbursement for the tax
from the customer by reason | 20 | | of a federal treaty.
| 21 | | (d-5) On and after July 1, 2017, the tax imposed by this | 22 | | Act shall not apply to gross rental receipts received by an | 23 | | entity that is organized and operated exclusively for religious | 24 | | purposes and possesses an active Exemption Identification | 25 | | Number issued by the Department pursuant to the Retailers' | 26 | | Occupation Tax Act when acting as a hotel operator renting, |
| | | HB2918 | - 3 - | LRB101 09921 HLH 55023 b |
|
| 1 | | leasing, or letting rooms: | 2 | | (1) in furtherance of the purposes for which it is | 3 | | organized; or | 4 | | (2) to entities that (i) are organized and operated | 5 | | exclusively for religious purposes, (ii) possess an active | 6 | | Exemption Identification Number issued by the Department | 7 | | pursuant to the Retailers' Occupation Tax Act, and (iii) | 8 | | rent the rooms in furtherance of the purposes for which | 9 | | they are organized. | 10 | | No gross rental receipts are exempt under paragraph (2) of | 11 | | this subsection (d-5) unless the hotel operator obtains the | 12 | | active Exemption Identification Number from the exclusively | 13 | | religious entity to whom it is renting and maintains that | 14 | | number in its books and records. Gross rental receipts from all | 15 | | rentals other than those described in items (1) or (2) of this | 16 | | subsection (d-5) are subject to the tax imposed by this Act | 17 | | unless otherwise exempt under this Act. | 18 | | This subsection (d-5) is exempt from the sunset provisions | 19 | | of Section 3-5 of this Act. | 20 | | (e) Persons subject to the tax imposed by this Act may
| 21 | | reimburse themselves for their tax liability under this Act by
| 22 | | separately stating such tax as an additional charge, which
| 23 | | charge may be stated in combination, in a single amount, with
| 24 | | any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
| 25 | | Illinois Municipal Code, and Section 25.05-10 of "An Act to | 26 | | revise
the law in relation to counties".
|
| | | HB2918 | - 4 - | LRB101 09921 HLH 55023 b |
|
| 1 | | (f) If any hotel operator collects an amount (however
| 2 | | designated) which purports to reimburse such operator for hotel
| 3 | | operators' occupation tax liability measured by receipts which
| 4 | | are not subject to hotel operators' occupation tax, or if any
| 5 | | hotel operator, in collecting an amount (however designated)
| 6 | | which purports to reimburse such operator for hotel operators'
| 7 | | occupation tax liability measured by receipts which are subject
| 8 | | to tax under this Act, collects more from the customer than the
| 9 | | operators' hotel operators' occupation tax liability in the
| 10 | | transaction is, the customer shall have a legal right to claim
| 11 | | a refund of such amount from such operator. However, if such
| 12 | | amount is not refunded to the customer for any reason, the | 13 | | hotel
operator is liable to pay such amount to the Department.
| 14 | | (Source: P.A. 100-213, eff. 8-18-17.)
| 15 | | (35 ILCS 145/6) (from Ch. 120, par. 481b.36)
| 16 | | Sec. 6. Filing of returns and distribution of proceeds. | 17 | | Except as provided hereinafter in this Section, on or | 18 | | before
the last day of each calendar month, every person | 19 | | engaged in the
business of renting, leasing or letting rooms in | 20 | | a hotel in this State
during the preceding calendar month shall | 21 | | file a return with the
Department, stating:
| 22 | | 1. The name of the operator;
| 23 | | 2. His residence address and the address of his | 24 | | principal place of
business and the address of the | 25 | | principal place of business (if that is
a different |
| | | HB2918 | - 5 - | LRB101 09921 HLH 55023 b |
|
| 1 | | address) from which he engages in the business of renting,
| 2 | | leasing or letting rooms in a hotel in this State;
| 3 | | 3. Total amount of rental receipts received by him | 4 | | during the
preceding calendar month from renting, leasing | 5 | | or letting rooms during
such preceding calendar month;
| 6 | | 4. Total amount of rental receipts received by him | 7 | | during the
preceding calendar month from renting, leasing | 8 | | or letting rooms to
permanent residents during such | 9 | | preceding calendar month;
| 10 | | 5. Total amount of other exclusions from gross rental | 11 | | receipts
allowed by this Act;
| 12 | | 6. Gross rental receipts which were received by him | 13 | | during the
preceding calendar month and upon the basis of | 14 | | which the tax is imposed;
| 15 | | 7. The amount of tax due;
| 16 | | 8. Such other reasonable information as the Department | 17 | | may require.
| 18 | | If the operator's average monthly tax liability to the | 19 | | Department
does not exceed $200, the Department may authorize | 20 | | his returns to be
filed on a quarter annual basis, with the | 21 | | return for January, February
and March of a given year being | 22 | | due by April 30 of such year; with the
return for April, May | 23 | | and June of a given year being due by July 31 of
such year; with | 24 | | the return for July, August and September of a given
year being | 25 | | due by October 31 of such year, and with the return for
| 26 | | October, November and December of a given year being due by |
| | | HB2918 | - 6 - | LRB101 09921 HLH 55023 b |
|
| 1 | | January 31
of the following year.
| 2 | | If the operator's average monthly tax liability to the | 3 | | Department
does not exceed $50, the Department may authorize | 4 | | his returns to be
filed on an annual basis, with the return for | 5 | | a given year being due by
January 31 of the following year.
| 6 | | Such quarter annual and annual returns, as to form and | 7 | | substance,
shall be subject to the same requirements as monthly | 8 | | returns.
| 9 | | Notwithstanding any other provision in this Act concerning | 10 | | the time
within which an operator may file his return, in the | 11 | | case of any
operator who ceases to engage in a kind of business | 12 | | which makes him
responsible for filing returns under this Act, | 13 | | such operator shall file
a final return under this Act with the | 14 | | Department not more than 1 month
after discontinuing such | 15 | | business.
| 16 | | Where the same person has more than 1 business registered | 17 | | with the
Department under separate registrations under this | 18 | | Act, such person
shall not file each return that is due as a | 19 | | single return covering all
such registered businesses, but | 20 | | shall file separate returns for each
such registered business.
| 21 | | In his return, the operator shall determine the value of | 22 | | any
consideration other than money received by him in | 23 | | connection with the
renting, leasing or letting of rooms in the | 24 | | course of his business and
he shall include such value in his | 25 | | return. Such determination shall be
subject to review and | 26 | | revision by the Department in the manner
hereinafter provided |
| | | HB2918 | - 7 - | LRB101 09921 HLH 55023 b |
|
| 1 | | for the correction of returns.
| 2 | | Where the operator is a corporation, the return filed on | 3 | | behalf of
such corporation shall be signed by the president, | 4 | | vice-president,
secretary or treasurer or by the properly | 5 | | accredited agent of such
corporation.
| 6 | | The person filing the return herein provided for shall, at | 7 | | the time of
filing such return, pay to the Department the | 8 | | amount of tax herein imposed.
The operator filing the return | 9 | | under this Section shall, at the time of
filing such return, | 10 | | pay to the Department the amount of tax imposed by this
Act | 11 | | less a discount of 2.1% or $25 per calendar year, whichever is | 12 | | greater,
which is allowed to reimburse the operator for the | 13 | | expenses incurred in
keeping records, preparing and filing | 14 | | returns, remitting the tax and
supplying data to the Department | 15 | | on request.
| 16 | | If any payment provided for in this Section exceeds the | 17 | | operator's liabilities under this Act, as shown on an original | 18 | | return, the Department may authorize the operator to credit | 19 | | such excess payment against liability subsequently to be | 20 | | remitted to the Department under this Act, in accordance with | 21 | | reasonable rules adopted by the Department. If the Department | 22 | | subsequently determines that all or any part of the credit | 23 | | taken was not actually due to the operator, the operator's | 24 | | discount shall be reduced by an amount equal to the difference | 25 | | between the discount as applied to the credit taken and that | 26 | | actually due, and that operator shall be liable for penalties |
| | | HB2918 | - 8 - | LRB101 09921 HLH 55023 b |
|
| 1 | | and interest on such difference. | 2 | | Beginning on July 1, 2019, the additional tax imposed by | 3 | | subsection (b-5) of Section 3 shall be deposited into the | 4 | | Illinois Experience Fund, a special fund created in the State | 5 | | treasury. Moneys in the Illinois Experience Fund shall be used | 6 | | to create, enhance, and promote artistic and cultural events | 7 | | and expositions in the State. | 8 | | There shall be deposited in the Build Illinois Fund in the | 9 | | State
Treasury for each State fiscal year 40% of the amount of | 10 | | total
net proceeds from the tax imposed by subsection (a) of | 11 | | Section 3.
Of the remaining 60%, $5,000,000 shall be deposited | 12 | | in the Illinois
Sports Facilities Fund and credited to the | 13 | | Subsidy Account each fiscal
year by making monthly deposits in | 14 | | the amount of 1/8 of $5,000,000 plus
cumulative deficiencies in | 15 | | such deposits for prior months, and an
additional $8,000,000 | 16 | | shall be deposited in the Illinois Sports Facilities
Fund and | 17 | | credited to the Advance Account each fiscal year by making | 18 | | monthly
deposits in the amount of 1/8 of $8,000,000 plus any | 19 | | cumulative deficiencies
in such deposits for prior months; | 20 | | provided, that for fiscal years ending
after June 30, 2001, the | 21 | | amount to be so deposited into the Illinois
Sports Facilities | 22 | | Fund and credited to the Advance Account each fiscal year
shall | 23 | | be increased from $8,000,000 to the then applicable Advance | 24 | | Amount and
the required monthly deposits beginning with July | 25 | | 2001 shall be in the amount
of 1/8 of the then applicable | 26 | | Advance Amount plus any cumulative deficiencies
in those |
| | | HB2918 | - 9 - | LRB101 09921 HLH 55023 b |
|
| 1 | | deposits for prior months. (The deposits of the additional | 2 | | $8,000,000
or the then applicable Advance Amount, as | 3 | | applicable,
during each fiscal year shall be treated as | 4 | | advances
of funds to the Illinois Sports Facilities Authority | 5 | | for its corporate
purposes to the extent paid to the Authority | 6 | | or its trustee and shall be
repaid into the General Revenue | 7 | | Fund in the State Treasury by the State
Treasurer on behalf of | 8 | | the Authority pursuant to Section 19 of the Illinois
Sports | 9 | | Facilities Authority Act, as amended. If in any fiscal year the | 10 | | full
amount of the then applicable Advance Amount
is not repaid | 11 | | into the General Revenue Fund, then the deficiency shall be | 12 | | paid
from the amount in the Local Government Distributive Fund | 13 | | that would otherwise
be allocated to the City of Chicago under | 14 | | the State Revenue Sharing Act.)
| 15 | | For purposes of the foregoing paragraph, the term "Advance | 16 | | Amount"
means, for fiscal year 2002, $22,179,000, and for | 17 | | subsequent fiscal years
through fiscal year 2032, 105.615% of | 18 | | the Advance Amount for the immediately
preceding fiscal year, | 19 | | rounded up to the nearest $1,000.
| 20 | | Of the remaining 60% of the amount of total net proceeds | 21 | | prior to August 1, 2011 from the tax
imposed by subsection (a) | 22 | | of Section 3 after all required deposits in the
Illinois Sports | 23 | | Facilities Fund, the amount equal to 8% of the net revenue
| 24 | | realized from this Act plus an amount equal to
8% of the net | 25 | | revenue realized from any tax imposed under Section 4.05 of the
| 26 | | Chicago World's Fair-1992 Authority Act during the preceding |
| | | HB2918 | - 10 - | LRB101 09921 HLH 55023 b |
|
| 1 | | month shall be
deposited in the Local Tourism Fund each month | 2 | | for purposes authorized by
Section 605-705 of the Department of | 3 | | Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of | 4 | | the remaining 60% of the amount of total net proceeds beginning | 5 | | on August 1, 2011 from the tax imposed by subsection (a) of | 6 | | Section 3 after all required deposits in the Illinois Sports | 7 | | Facilities Fund, an amount equal to 8% of the net revenue | 8 | | realized from this Act plus an amount equal to 8% of the net | 9 | | revenue realized from any tax imposed under Section 4.05 of the | 10 | | Chicago World's Fair-1992 Authority Act during the preceding | 11 | | month shall be deposited as follows: 18% of such amount shall | 12 | | be deposited into the Chicago Travel Industry Promotion Fund | 13 | | for the purposes described in subsection (n) of Section 5 of | 14 | | the Metropolitan Pier and Exposition Authority Act and the | 15 | | remaining 82% of such amount shall be deposited into the Local | 16 | | Tourism Fund each month for purposes authorized by Section | 17 | | 605-705 of the Department of Commerce and Economic Opportunity | 18 | | Law. Beginning on August 1, 1999 and ending on July 31, 2011, | 19 | | an amount equal to 4.5% of the net revenue
realized from the | 20 | | Hotel Operators' Occupation Tax Act during the preceding
month | 21 | | shall be deposited into the International Tourism Fund for the | 22 | | purposes
authorized in Section 605-707 of the Department of | 23 | | Commerce
and Economic Opportunity Law. Beginning on August 1, | 24 | | 2011, an amount equal to 4.5% of the net revenue realized from | 25 | | this Act during the preceding month shall be deposited as | 26 | | follows: 55% of such amount shall be deposited into the Chicago |
| | | HB2918 | - 11 - | LRB101 09921 HLH 55023 b |
|
| 1 | | Travel Industry Promotion Fund for the purposes described in | 2 | | subsection (n) of Section 5 of the Metropolitan Pier and | 3 | | Exposition Authority Act and the remaining 45% of such amount | 4 | | deposited into the International Tourism Fund for the purposes | 5 | | authorized in Section 605-707 of the Department of Commerce and | 6 | | Economic Opportunity Law. "Net
revenue realized for a month" | 7 | | means the revenue collected by the State under
that Act during | 8 | | the previous month less the amount paid out during that same
| 9 | | month as refunds to taxpayers for overpayment of liability | 10 | | under that Act.
| 11 | | After making all these deposits, all other proceeds of the | 12 | | tax imposed under
subsection (a) of Section 3 shall be | 13 | | deposited in the Tourism Promotion Fund in
the State Treasury. | 14 | | All moneys received by the Department from the additional
tax | 15 | | imposed under subsection (b) of Section 3 shall be deposited | 16 | | into the Build
Illinois Fund in the State Treasury.
| 17 | | The Department may, upon separate written notice to a | 18 | | taxpayer, require
the taxpayer to prepare and file with the | 19 | | Department on a form prescribed
by the Department within not | 20 | | less than 60 days after receipt of the notice
an annual | 21 | | information return for the tax year specified in the notice.
| 22 | | Such annual return to the Department shall include a statement | 23 | | of gross
receipts as shown by the operator's last State income | 24 | | tax return. If the
total receipts of the business as reported | 25 | | in the State income tax return
do not agree with the gross | 26 | | receipts reported to the Department for the
same period, the |
| | | HB2918 | - 12 - | LRB101 09921 HLH 55023 b |
|
| 1 | | operator shall attach to his annual information return a
| 2 | | schedule showing a reconciliation of the 2 amounts and the | 3 | | reasons for the
difference. The operator's annual information | 4 | | return to the Department
shall also disclose pay roll | 5 | | information of the operator's business during
the year covered | 6 | | by such return and any additional reasonable information
which | 7 | | the Department deems would be helpful in determining the | 8 | | accuracy of
the monthly, quarterly or annual tax returns by | 9 | | such operator as
hereinbefore provided for in this Section.
| 10 | | If the annual information return required by this Section | 11 | | is not filed
when and as required the taxpayer shall be liable | 12 | | for a penalty in an
amount determined in accordance with | 13 | | Section 3-4 of the Uniform Penalty and
Interest Act until such | 14 | | return is filed as required, the penalty to be
assessed and | 15 | | collected in the same manner as any other penalty provided
for | 16 | | in this Act.
| 17 | | The chief executive officer, proprietor, owner or highest | 18 | | ranking manager
shall sign the annual return to certify the | 19 | | accuracy of the information
contained therein. Any person who | 20 | | willfully signs the annual return containing
false or | 21 | | inaccurate information shall be guilty of perjury and punished
| 22 | | accordingly. The annual return form prescribed by the | 23 | | Department shall
include a warning that the person signing the | 24 | | return may be liable for perjury.
| 25 | | The foregoing portion of this Section concerning the filing | 26 | | of an annual
information return shall not apply to an operator |
| | | HB2918 | - 13 - | LRB101 09921 HLH 55023 b |
|
| 1 | | who is not required to
file an income tax return with the | 2 | | United States Government.
| 3 | | (Source: P.A. 100-23, eff. 7-6-17; 100-1171, eff. 1-4-19.)
| 4 | | Section 90. The State Finance Act is amended by adding | 5 | | Section 5.891 as follows: | 6 | | (30 ILCS 105/5.891 new) | 7 | | Sec. 5.891. The Illinois Experience Fund.
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
|
|