(65 ILCS 5/8-3-14a)
Municipal hotel use tax.
(a) The corporate authorities of any municipality may impose a
tax upon the privilege of renting or leasing rooms in a hotel within the municipality at a rate not to exceed 5% of the rental or lease payment. The corporate authorities may provide for the administration and
enforcement of the tax and for the collection thereof from the persons
subject to the tax, as the corporate authorities determine to be necessary
or practical for the effective administration of the tax.
(b) Each hotel in the municipality shall collect the tax from the person making the rental or lease payment at the time that the payment is tendered to the hotel. The hotel shall, as trustee, remit the tax to the municipality.
(c) The tax authorized under this Section does not apply to any rental or lease payment by a permanent resident of that hotel or to any payment made to any hotel that is subject to the tax
imposed under subsection (c) of Section 13 of the Metropolitan Pier and
Exposition Authority Act. A municipality may not impose a tax under this Section if it imposes a tax under Section 8-3-14. Nothing in this Section may be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
(d) Except as otherwise provided in this Division, the moneys collected by a municipality under this Section may
be expended solely to promote tourism and conventions
within that municipality or otherwise to attract nonresident overnight
visitors to the municipality. No moneys received under this Section may be used to advertise for
or otherwise promote new competition in the hotel business.
(e) As used in this Section, "hotel" has the meaning set forth in Section 2 of the Hotel
Operators' Occupation Tax Act.
(Source: P.A. 101-204, eff. 8-2-19.)