SB2564 103RD GENERAL ASSEMBLY

LRB103 31564 HLH 59703 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2564

Introduced 4/19/2023, by Sen. Cristina Castro

SYNOPSIS AS INTRODUCED:

New Act
35 ILCS 145/2	from Ch. 120, par. 481b.32
35 ILCS 145/3	from Ch. 120, par. 481b.33
35 ILCS 145/3-2 new
35 ILCS 145/3-3 new
35 ILCS 145/4	from Ch. 120, par. 481b.34
35 ILCS 145/5	from Ch. 120, par. 481b.35
35 ILCS 145/6	from Ch. 120, par. 481b.36
55 ILCS 5/5-1030	from Ch. 34, par. 5-1030
65 ILCS 5/8-3-13	from Ch. 24, par. 8-3-13
65 ILCS 5/8-3-14	from Ch. 24, par. 8-3-14
65 ILCS 5/8-3-14a

Creates the Short-Term Rental Occupation Tax Act. Imposes taxes upon short-term rental transactions facilitated by a hosting platform. Provides that one tax is imposed at the rate of 5% of 94% of the gross rental receipts from the transaction. Provides that an additional tax is imposed at the rate of 1% of 94% of the gross rental receipts from the transaction. Provides that operators of short-term rentals shall obtain a business license from the Department of Revenue. Amends the Hotel Operators' Occupation Tax Act. Provides that re-renters of hotel rooms who meet certain criteria related to gross receipts or number of transactions are required to collect and remit the tax under the Act. Amends the Counties Code and the Illinois Municipal Code to make conforming changes. Effective January 1, 2024.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Short-Term Rental Occupation Tax Act.

Section 5. Definitions. As used in this Act:

"Booking transaction" means a transaction in which a hosting platform collects or receives compensation for facilitating a rental of a short-term rental located in this State by directly or indirectly allowing a reservation to be made for an occupant or collecting or processing payments through the hosting platform's online application, software, website, or system.

"Department" means the Department of Revenue.

"Hosting platform" or "platform" means a person who provides an online application, software, website, or system through which a short-term rental located in this State is advertised or held out to the public as available to rent for occupancy.

"Hotel" has the same meaning as defined in the Hotel Operators' Occupation Tax Act.

"Occupancy" means the use or possession by an occupant, or the right to the use or possession by an occupant, of any room or rooms in a short-term rental for any purpose, or the right of an occupant to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of the room or rooms.

"Operator" means any person operating a short-term rental.

"Permanent resident" means any person who occupies or has the right to occupy a room or rooms in a short-term rental for at least 30 consecutive days, regardless of whether the person occupies the same room or rooms in the short-term rental during the entire 30-day period.

"Person" means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian, or other representative appointed by order of any court.

"Rent" or "rental" means the consideration received for an occupant's occupancy, valued in money, whether received in money or otherwise, including all receipts, cash, credits, and property or services of any kind or nature.

"Room" or "rooms" means any living quarters, sleeping accommodations, or housekeeping accommodations.

"Short-term rental" means an owner-occupied, tenant-occupied, or non-owner-occupied dwelling, including, but not limited to, an apartment, house, cottage, condominium, or furnished accommodation, located in this State, where: (i) at least one room in the dwelling is rented to an occupant for a period of less than 30 consecutive days; and (ii) all accommodations are reserved in advance; provided, however, that a dwelling shall be considered a single room if rented as such. "Short-term rental" does not include:

(1) any dormitory or other living or sleeping facility maintained by a public or private school, college, or university for the use of students, faculty, or visitors;

(2) any facility certified or licensed and regulated by the Department of Human Services or Department of Public Health;

(3) any room in a condominium, cooperative, or timeshare plan and any individually or collectively owned single-family or multi-family dwelling house or room in such dwelling that is rented for a period of at least 30 consecutive days and that is not advertised or held out to the public as a place regularly rented for periods of less than 30 consecutive days;

(4) any migrant labor camp or residential migrant housing permitted by the Department of Public Health;

(5) a facility that provides housing only to patients, patients' families, and patients' caregivers and not to the general public and is owned and operated by a nonprofit organization;

(6) any apartment building inspected by the United States Department of Housing and Urban Development or other entity acting on behalf of the United States Department of Housing and Urban Development that is designated primarily as housing for persons at least 62 years of age. The Department may require the operator of the apartment building to attest in writing that the building meets the criteria provided in this paragraph; the Department may adopt rules to implement this requirement; or

(7) the rental, leasing, or letting of rooms or accommodations for occupancy in a hotel.

Section 10. Rate; exemptions.

(a) A tax is imposed upon each hosting platform that facilitates a short-term rental transaction in the State. The tax is imposed at the rate of 5% of 94% of the gross rental receipts from the short-term rental transaction.

(b) An additional tax is imposed upon each hosting platform that facilitates a short-term rental transaction in the State. That tax is imposed at the rate of 1% of 94% of the gross rental receipts from the short-term rental transaction.

(c) No funds received pursuant to this Act shall be used to advertise for or otherwise promote new competition in the hotel industry.

(d) The taxes are not imposed upon the privilege of engaging in any business in interstate commerce or otherwise, which business may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State. In addition, the tax is not imposed upon gross rental receipts for which the hosting platform is prohibited from obtaining reimbursement for the tax from the customer by reason of a federal treaty.

(e) The taxes imposed by this Act shall not apply to a short-term rental transaction if:

(1) any of the parties to the transaction is an entity that is organized and operated exclusively for religious or charitable purposes;

(2) that party possesses an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act; and

(3) the short-term rental is in furtherance of the purposes for which the religious or charitable entity is organized.

(f) Persons subject to the tax imposed by this Act may reimburse themselves for their tax liability under this Act by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with any tax imposed by any unit of local government.

(g) If a hosting platform collects an amount (however designated) that purports to reimburse the platform for its short-term rental occupation tax liability measured by receipts that are not subject to the short-term rental occupation tax, or if a hosting platform, in collecting an amount (however designated) that purports to reimburse the platform for its short-term rental occupation tax liability measured by receipts which are subject to tax under this Act, collects more from the customer than the short-term rental occupation tax liability from the transaction, then the customer shall have a legal right to claim a refund of that amount from the platform. However, if the amount is not refunded to the customer for any reason, the hosting platform is liable to pay that amount to the Department.

(h) The tax imposed under this Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

Section 15. Hosting platform collection and remittance of taxes. Any hosting platform that facilitates a booking transaction shall be required to: (i) assess, collect, report, and remit the tax to the Department; (ii) maintain records of any taxes collected under this Act that have been remitted to the appropriate taxing body and submit these records to the Department in accordance with this Act; and (iii) notify the short-term rental operator that the operator must comply with all applicable local, State, and federal laws, regulations, and ordinances, including this Act.

Section 20. Hosting platforms.

(a) It is unlawful for any hosting platform to facilitate a booking transaction for a short-term rental located in this State unless the hosting platform:

(1) is first registered with the Department in accordance with subsection (d); and

(2) as a condition of registration with the Department:

(A) has obtained written consent for the disclosure of the information required under Section 25 of this Act, and the furnishing of such information in accordance with Section 25 of this Act, from all operators with short-term rentals located in this State who intend to short-term rent those dwellings or rooms within those dwellings through the platform; and

(B) has granted its own consent in writing for the disclosure and furnishing of that information.

(b) It is unlawful for any hosting platform to facilitate a booking transaction for a short-term rental located in this State if the dwelling or room within the dwelling is not lawfully registered, licensed, permitted, or otherwise allowed as a short-term rental pursuant to an applicable local, State, or federal law, regulation, or ordinance, including this Act, at the time it is rented.

(c) Each hosting platform shall designate and maintain on file with the Department an agent for service of process in this State. If the registered agent is unable, with reasonable diligence, to be located, or if the hosting platform fails to reasonably designate or maintain a registered agent in this State, the Director may deem himself or herself or another appropriate person an agent of the hosting platform for purposes of accepting service of any process, notice, or demand.

(d) The Department may issue a certificate of registration to each hosting platform that meets the requirements of this Act and the rules for hosting platform registration adopted under this Act by the Department.

Section 25. Records and reporting.

(a) Notwithstanding any other provision of law or Department action to the contrary:

(1) Every hosting platform shall keep separate books and records of the hosting platform's business so as to show the rents and occupancies that are taxable under this Act separately from the transactions of the hosting platform that are not taxable under this Act. If any hosting platform fails to keep such separate books or records, the hosting platform shall be liable to remit the tax at the rate designated in this Act upon the entire proceeds from the short-term rental. The Department may adopt rules that establish requirements, including record forms and formats, for records required to be kept and maintained by taxpayers. For purposes of this Section, "records" means all data maintained by the taxpayer, including data on paper, microfilm, microfiche, or any type of machine-sensible data compilation.

(2) In accordance with rules adopted by the Department and subject to applicable laws, for all booking transactions it facilitates for short-term rentals located in this State a hosting platform shall develop and maintain a report that must include all of the following information about each short-term rental booking transaction:

(A) the name of the operator;

(B) the operator's or short-term rental's license, registration, permit, or other number as applicable;

(C) the physical address;

(D) any room or dwelling designation;

(E) the individual periods of rental by calendar date;

(F) the itemized amounts collected or processed by the hosting platform for the rental, taxes, and all other charges; and

(G) any additional information that the Department may require by rule.

(b) The hosting platform shall submit the report to the Department monthly in the format requested by the Department and shall make the report, as well as any underlying records requested by the Department, available for audit by the Department upon the Department's request. The Department may issue and serve subpoenas and compel the production of the report and underlying records as necessary to enforce hosting platform compliance with this Section. Such underlying records may not include copies of specific message exchanges between the hosting platform and an operator, short-term rental renter, or occupant, or between the operator and short-term rental renter or occupant.

(c) The hosting platform shall maintain the report and underlying records for at least 3 years, in accordance with any rules adopted by the Department.

(d) The Department shall share the report, sections of the report, underlying records, or any combination of those items, with an agency or local government of this State to ensure compliance with this Act, the laws of this State, and any local laws, regulations, or ordinances.

(e) The Department may use the report and underlying records for tax auditing purposes, and local governments may use the reports and underlying records to ensure compliance with laws, ordinances, or regulations.

(f) A hosting platform may not facilitate a booking transaction for a short-term rental located in this State unless the operator consents to the hosting platform's disclosure of the information required by this Section.

(g) A hosting platform that operates in violation of this Section or the rules of the Department adopted under this Act shall be subject to fines up to $1,000 per offense and to suspension, revocation, or refusal of a registration issued pursuant to this Act. For purposes of this subsection, the Department may regard as a separate offense each booking transaction a hosting platform facilitates in violation of this Act or the rules of the Department or each calendar day that such violation persists.

Section 30. State business licensing.

(a) Before an operator engages in the business of a short-term rental in this State, the operator shall obtain a business license from the Department. In order to obtain a business license from the Department, the operator must first provide evidence to the Department that the short-term rental is lawfully registered, licensed, permitted, or otherwise allowed to operate as a short-term rental pursuant to the applicable local law, regulation, or ordinance.

(b) An operator's business license number issued by the Department must be displayed on any advertisement or listing of a short-term rental and be physically displayed within the short-term rental.

(c) If the Department notifies a hosting platform in writing that an advertisement or listing for a short-term rental in this State fails to display a valid business license number issued by the Department, the hosting platform must remove all advertisements or listings for that short-term rental from its online application, software, website, or system within 3 business days unless the listing is otherwise brought into compliance with the law.

(d) The Department shall revoke or refuse to issue or renew a short-term rental operator's business license when: (i) the Department determines that the operation of the subject short-term rental violates the terms of an applicable lease or property restriction; or (ii) the Department determines that the operation of the short-term rental violates a State, federal, or local law, ordinance, or regulation, or the short-term rental operator is the subject of a final order or judgment lawfully directing the termination of the premises' use as a short-term rental.

Section 35. Filing of returns and distribution of proceeds. Except as provided in this Section, on or before the last day of each calendar month, each hosting platform that is liable for the tax under this Act during the preceding calendar month shall file a return for the preceding calendar month with the Department, stating:

(1) the name of the hosting platform;

(2) the address of the principal place of business from which the hosting platform engages in the business of facilitating short-term rentals in this State;

(3) the total amount of rental receipts received by the hosting platform during the preceding calendar month from renting, leasing or letting rooms in this State during the preceding calendar month;

(4) the total amount of other exclusions from gross rental receipts allowed by this Act;

(5) gross rental receipts that were received by the hosting platform during the preceding calendar month and upon the basis of which the tax is imposed;

(6) the amount of tax due; and

(7) such other reasonable information as the Department may require.

If the hosting platform's average monthly tax liability to the Department under this Act does not exceed $200, the Department may authorize the platform's returns to be filed on a quarter annual basis, with the return for January, February, and March of a given year being due by April 30 of such year; with the return for April, May, and June of a given year being due by July 31 of such year; with the return for July, August, and September of a given year being due by October 31 of such year, and with the return for October, November, and December of a given year being due by January 31 of the following year.

If the hosting platform's average monthly tax liability to the Department under this Act does not exceed $50, the Department may authorize the platform's returns to be filed on an annual basis, with the return for a given year being due by January 31 of the following year.

Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.

Notwithstanding any other provision in this Act concerning the time within which the hosting platform may file his return, in the case of any hosting platform that ceases to engage in a kind of business which makes the hosting platform responsible for filing returns under this Act, such platform shall file a final return under this Act with the Department not more than one month after discontinuing that business.

Where the same person has more than one business registered with the Department under separate registrations under this Act, that person shall not file each return that is due as a single return covering all such registered businesses, but shall file separate returns for each such registered business.

In the return under this Act, the taxpayer shall determine the value of any consideration other than money received by him in connection with the renting, leasing, or letting of rooms in this State in the course of his business, and the taxpayer shall include such value in his return. Such determination shall be subject to review and revision by the Department in the manner provided in this Act for the correction of returns.

Where the taxpayer is a corporation, the return filed on behalf of such corporation shall be signed by the president, vice-president, secretary or treasurer or by the properly accredited agent of such corporation.

The person filing the return shall, at the time of filing such return, pay to the Department the amount of the tax imposed under this Act, less a discount of 2.1% or $25 per calendar year, whichever is greater, which is allowed to reimburse the hosting platform for the expenses incurred in keeping records, preparing and filing returns, remitting the tax and supplying information to the Department on request.

If any payment provided for in this Section exceeds the taxpayer's liabilities under this Act, as shown on an original return, the Department may authorize the taxpayer to credit the excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer's discount shall be reduced by an amount equal to the difference between the discount as applied to the credit taken and that actually due, and that taxpayer shall be liable for penalties and interest on such difference.

The proceeds collected from the tax under this Act shall be deposited into the same funds and in the same manner as proceeds are deposited under Section 6 of the Hotel Operators' Occupation Tax Act.

The Department may, upon separate written notice to a taxpayer, require the taxpayer to prepare and file with the Department not less than 60 days after receipt of the notice, on a form prescribed by the Department, an annual information return for the tax year specified in the notice. The annual return to the Department shall include a statement of gross receipts as shown by the taxpayer's last State income tax return. If the total receipts of the business as reported in the State income tax return do not agree with the gross receipts reported to the Department for the same period, the taxpayer shall attach to his annual information return a schedule showing a reconciliation of the 2 amounts and the reasons for the difference. The taxpayer's annual information return to the Department shall also disclose payroll information for the taxpayer's business during the year covered by the return and any additional reasonable information that the Department deems to be helpful in determining the accuracy of the monthly, quarterly, or annual tax returns provided for in this Section.

If the annual information return required by this Section is not filed when and as required, the taxpayer shall be liable for a penalty in an amount determined in accordance with Section 3-4 of the Uniform Penalty and Interest Act until the return is filed as required. That penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.

The chief executive officer, proprietor, owner, or highest ranking manager shall sign the annual return to certify the accuracy of the information contained in the return. Any person who willfully signs the annual return containing false or inaccurate information is guilty of perjury. The annual return form prescribed by the Department shall include a warning that the person signing the return may be liable for perjury.

The provisions of this Section concerning the filing of an annual information return shall not apply to a taxpayer who is not required to file an income tax return with the United States Government.

Section 40. Incorporation of Retailers' Occupation Tax Act and Uniform Penalty and Interest Act. All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act shall apply to persons in the business of renting, leasing, or letting short-term rental rooms in this State to the same extent as if such provisions were included herein.

Section 45. Recordkeeping. When the amount due is under $300, any hosting platform that (i) fails to make a return under this Act, (ii) fails to keep books and records as required by this Act, (iii) makes a fraudulent return under this Act, or (iv) willfully violates any rule of the Department for the administration and enforcement of this Act is guilty of a Class 4 felony. When the amount due is under $300, any officer or agent of a hosting platform who signs a fraudulent return made on behalf of the hosting platform is guilty of a Class 4 felony.

Any person who violates any provision of Section 5 of this Act is guilty of a Class 4 felony. Each and every day any such person is engaged in business in violation of said Section 5 shall constitute a separate offense.

When the amount due is under $300, any person who accepts money that is due to the Department under this Act from a taxpayer for the purpose of acting as the taxpayer's agent to make the payment to the Department, but who fails to remit such payment to the Department when due is guilty of a Class 4 felony. Any such person who purports to make such payment by issuing or delivering a check or other order upon a real or fictitious depository for the payment of money, knowing that it will not be paid by the depository, shall be guilty of a deceptive practice in violation of Section 17-1 of the Criminal Code of 2012.

Any hosting platform that collects or attempts to collect an amount (however designated) that purports to reimburse the hosting platform for a short-term rental operators' occupation tax liability measured by receipts that the hosting platform knows are not subject to short-term rental operators' occupation tax, or any hosting platform that knowingly over-collects or attempts to over-collect an amount purporting to reimburse such operator for short-term operators' occupation tax liability in a transaction that is subject to the tax that is imposed by this Act, is guilty of a Class 4 felony.

When the amount due is $300 or more, any hosting platform that (i) fails to make a return under this Act, (ii) fails to keep books and records as required by this Act, (iii) makes a fraudulent return under this Act, or (iv) willfully violates any rule of the Department for the administration and enforcement of this Act is guilty of a Class 3 felony. When the amount due is $300 or more, any officer or agent of a hosting platform who signs a fraudulent return made on behalf of the hosting platform is guilty of a Class 3 felony.

When the amount due is $300 or more, any person who accepts money that is due to the Department under this Act from a taxpayer for the purpose of acting as the taxpayer's agent to make the payment to the Department, but who fails to remit such payment to the Department is guilty of a Class 3 felony. Any such person who purports to make such payment by issuing or delivering a check or other order upon a real or fictitious depository for the payment of money, knowing that it will not be paid by the depository, shall be guilty of a deceptive practice in violation of Section 17-1 of the Criminal Code of 2012.

A prosecution for any act in violation of this Section may be commenced at any time within 3 years of the commission of that act.

Section 50. Intergovernmental sharing of information. Any information collected by the Department pursuant to this Act shall not be subject to the Freedom of Information Act. Information collected pursuant to this Act by the Department may be shared with local units of government upon request, provided that the information is treated as confidential at all times by the local unit of government.

Section 55. Local regulation. A unit of local government may adopt an ordinance or resolution regulating short-term rental activities within that unit of local government that imposes requirements not inconsistent with nor less stringent than those imposed by this Act.

Section 60. Severability. If any provision of this Act, in part or in full, or its application to any person, entity, or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

Section 900. The Hotel Operators' Occupation Tax Act is amended by changing Sections 2, 3, 4, 5, and 6 and by adding Sections 3-2 and 3-3 as follows:

(35 ILCS 145/2) (from Ch. 120, par. 481b.32)

Sec. 2. Definitions. As used in this Act, unless the context otherwise requires:

(1) "Hotel" means any building or buildings in which the public may, for a consideration, obtain living quarters, sleeping or housekeeping accommodations. The term includes, but is not limited to, inns, motels, tourist homes or courts, lodging houses, rooming houses and apartment houses, retreat centers, conference centers, and hunting lodges.

(2) "Operator" means any person engaged in the business of renting, leasing, or letting rooms in operating a hotel.

(3) "Occupancy" means the use or possession, or the right to the use or possession, of any room or rooms in a hotel for any purpose, or the right to the use or possession of the furnishings or to the services and accommodations accompanying the use and possession of the room or rooms.

(4) "Room" or "rooms" means any living quarters, sleeping or housekeeping accommodations.

(5) "Permanent resident" means any person who occupied or has the right to occupy any room or rooms, regardless of whether or not it is the same room or rooms, in a hotel for at least 30 consecutive days.

(6) "Rent" or "rental" means the consideration received for occupancy, valued in money, whether received in money or otherwise, including all receipts, cash, credits and property or services of any kind or nature."Rent" or "rental" includes any fee, charge, or commission received by a re-renter of hotel rooms specifically in connection with the re-rental of hotel rooms.

(7) "Department" means the Department of Revenue.

(8) "Person" means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian or other representative appointed by order of any court.

(9) "Re-renter of hotel rooms" means a person who is not employed by the hotel operator but who (i) obtains from the hotel operator the right or authority to grant control of, access to, or occupancy of a hotel room in this State to a guest of the hotel or (ii) facilitates the booking of a hotel room located in this State. A person who obtains those rights or authorities from the hotel operator is not considered a re-renter of a hotel room if the person operates under a shared hotel brand with the operator.

(Source: P.A. 100-213, eff. 8-18-17.)

(35 ILCS 145/3) (from Ch. 120, par. 481b.33)

Sec. 3. Rate; exemptions.

(a) A tax is imposed upon hotel operators persons engaged in the business of renting, leasing or letting rooms in a hotel at the rate of 5% of 94% of the gross rental receipts from engaging in business as a hotel operator such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting hotel rooms to permanent residents of a that hotel and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act.

(b) There shall be imposed an additional tax upon hotel operators persons engaged in the business of renting, leasing or letting rooms in a hotel at the rate of 1% of 94% of the gross rental receipts it receives from engaging in the business as a hotel operator such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act.

(b-5) Beginning on January 1, 2024, if the renting, leasing, or letting of a hotel room is done through a re-renter of hotel rooms who meets either of the following thresholds, then, subject to the provisions of Section 3-2 and 3-3, the re-renter is considered the hotel operator for the purposes of the taxes under subsections (a) and (b):

(1) the cumulative gross receipts from rentals in Illinois by the re-renter of hotel rooms are $100,000 or more; or

(2) the re-renter of hotel rooms cumulatively enters into 200 or more separate transactions for rentals in Illinois.

A re-renter of hotel rooms shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the threshold of either paragraph (1) or (2) of this subsection (a-5) for the preceding 12-month period. If the re-renter of hotel rooms meets the threshold of either paragraph (1) or (2) for a 12-month period, he or she is subject to tax under this Act and is required to remit the tax imposed under this Act and file returns for the 12-month period beginning on the first day of the next month after he or she determines that he or she meets the threshold of paragraph (1) or (2). At the end of that 12-month period, the re-renter of hotel rooms shall determine whether he or she continued to meet the threshold of either paragraph (1) or (2) during the preceding 12-month period. If he or she met the threshold in either paragraph (1) or (2) for the preceding 12-month period, he or she is considered a hotel operator in this State and is required to remit the tax imposed under this Act and file returns for the subsequent 12-month period. If, at the end of a 12-month period during which a re-renter is required to remit the tax imposed under this Act, the re-renter determines that he or she did not meet the threshold in either paragraph (1) or (2) during the preceding 12-month period, he or she shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the threshold of either paragraph (1) or (2) for the preceding 12-month period.

(c) No funds received pursuant to this Act shall be used to advertise for or otherwise promote new competition in the hotel business.

(d) However, such tax is not imposed upon the privilege of engaging in any business in Interstate Commerce or otherwise, which business may not, under the Constitution and Statutes of the United States, be made the subject of taxation by this State. In addition, the tax is not imposed upon gross rental receipts for which the hotel operator is prohibited from obtaining reimbursement for the tax from the customer by reason of a federal treaty.

(d-5) On and after July 1, 2017, the tax imposed by this Act shall not apply to gross rental receipts received by an entity that is organized and operated exclusively for religious purposes and possesses an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act when acting as a hotel operator renting, leasing, or letting rooms:

(1) in furtherance of the purposes for which it is organized; or

(2) to entities that (i) are organized and operated exclusively for religious purposes, (ii) possess an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act, and (iii) rent the rooms in furtherance of the purposes for which they are organized.

No gross rental receipts are exempt under paragraph (2) of this subsection (d-5) unless the hotel operator obtains the active Exemption Identification Number from the exclusively religious entity to whom it is renting and maintains that number in its books and records. Gross rental receipts from all rentals other than those described in items (1) or (2) of this subsection (d-5) are subject to the tax imposed by this Act unless otherwise exempt under this Act.

This subsection (d-5) is exempt from the sunset provisions of Section 3-5 of this Act.

(e) Persons subject to the tax imposed by this Act may reimburse themselves for their tax liability under this Act by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the Illinois Municipal Code, and Section 25.05-10 of "An Act to revise the law in relation to counties".

(f) If any hotel operator collects an amount (however designated) which purports to reimburse such operator for hotel operators' occupation tax liability measured by receipts which are not subject to hotel operators' occupation tax, or if any hotel operator, in collecting an amount (however designated) which purports to reimburse such operator for hotel operators' occupation tax liability measured by receipts which are subject to tax under this Act, collects more from the guest customer than the operators' hotel operators' occupation tax liability in the transaction is, the guest customer shall have a legal right to claim a refund of such amount from such operator. However, if such amount is not refunded to the guest customer for any reason, the hotel operator is liable to pay such amount to the Department.

(Source: P.A. 100-213, eff. 8-18-17.)

(35 ILCS 145/3-2 new)

Sec. 3-2. No resale exemption; tax incurred by re-renters of hotel rooms. A hotel operator who rents, leases, or lets rooms subject to tax under this Act to a re-renter of hotel rooms incurs the tax under this Act on the gross rental receipts it receives from that re-renter of hotel rooms and cannot claim any resale exemption. In such situations, the re-renter of hotel rooms incurs tax under this Act on its gross rental receipts as provided in Section 3 of this Act.

(35 ILCS 145/3-3 new)

Sec. 3-3. Re-renter of hotel rooms; credit for tax reimbursement. A re-renter of hotel rooms may take a credit against the tax it incurs on the rental of a hotel room under this Act for the amount it paid under subsection (f) of Section 3 of this Act to a hotel operator as reimbursement for the tax incurred under this Act for the rental of that room for the purposes of re-rental.

(35 ILCS 145/4) (from Ch. 120, par. 481b.34)

Sec. 4. Books and records. Every operator shall keep separate books or records of his business as an operator so as to show the rents and occupancies taxable under this Act separately from his transactions not taxable under this Act. If any operator fails to keep such separate books or records, he shall be liable to tax at the rate designated in Section 3 hereof upon the entire proceeds from his business hotel. The Department may adopt rules that establish requirements, including record forms and formats, for records required to be kept and maintained by taxpayers. For purposes of this Section, "records" means all data maintained by the taxpayer, including data on paper, microfilm, microfiche or any type of machine-sensible data compilation.

(Source: P.A. 88-480.)

(35 ILCS 145/5) (from Ch. 120, par. 481b.35)

Sec. 5. Certificate of registration; retailers' occupation tax registration provisions apply. It shall be unlawful for any person to engage in the business as a hotel operator of renting, leasing or letting rooms in a hotel in this State without a certificate of registration from the Department.

All of the provisions of Sections 2a and 2b of the Retailers' Occupation Tax Act, in effect on the effective date of this Act, as subsequently amended, shall apply to persons in the business as hotel operators of renting, leasing or letting rooms in a hotel in this State, to the same extent as if such provisions were included herein.

(Source: Laws 1961, p. 1728.)

(35 ILCS 145/6) (from Ch. 120, par. 481b.36)

Sec. 6. Returns; allocation of proceeds Filing of returns and distribution of proceeds. Except as provided hereinafter in this Section, on or before the last day of each calendar month, every person engaged as a hotel operator in the business of renting, leasing or letting rooms in a hotel in this State during the preceding calendar month shall file a return with the Department, stating:

1. The name of the operator;

2. His residence address and the address of his principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business as a hotel operator of renting, leasing or letting rooms in a hotel in this State (including, if required by the Department, the address of each hotel from which rental receipts were received);

3. Total amount of rental receipts received by him during the preceding calendar month from engaging in business as a hotel operator renting, leasing or letting rooms during such preceding calendar month;

4. Total amount of rental receipts received by him during the preceding calendar month from renting, leasing or letting rooms to permanent residents during such preceding calendar month;

5. Total amount of other exclusions from gross rental receipts allowed by this Act;

6. Gross rental receipts which were received by him during the preceding calendar month and upon the basis of which the tax is imposed;

7. The amount of tax due;

8. Credit for any reimbursement of tax paid by a re-renter of hotel rooms to hotel operators for rentals purchased for re-rental, as provided in Section 3-3 of this Act;

9. 8. Such other reasonable information as the Department may require.

If the operator's average monthly tax liability to the Department does not exceed $200, the Department may authorize his returns to be filed on a quarter annual basis, with the return for January, February and March of a given year being due by April 30 of such year; with the return for April, May and June of a given year being due by July 31 of such year; with the return for July, August and September of a given year being due by October 31 of such year, and with the return for October, November and December of a given year being due by January 31 of the following year.

If the operator's average monthly tax liability to the Department does not exceed $50, the Department may authorize his returns to be filed on an annual basis, with the return for a given year being due by January 31 of the following year.

Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.

Notwithstanding any other provision in this Act concerning the time within which an operator may file his return, in the case of any operator who ceases to engage in a kind of business which makes him responsible for filing returns under this Act, such operator shall file a final return under this Act with the Department not more than 1 month after discontinuing such business.

Where the same person has more than 1 business registered with the Department under separate registrations under this Act, such person shall not file each return that is due as a single return covering all such registered businesses, but shall file separate returns for each such registered business.

In his return, the operator shall determine the value of any consideration other than money received by him in connection with engaging in business as a hotel operator the renting, leasing or letting of rooms in the course of his business and he shall include such value in his return. Such determination shall be subject to review and revision by the Department in the manner hereinafter provided for the correction of returns.

Where the operator is a corporation, the return filed on behalf of such corporation shall be signed by the president, vice-president, secretary or treasurer or by the properly accredited agent of such corporation.

The person filing the return herein provided for shall, at the time of filing such return, pay to the Department the amount of tax herein imposed. The operator filing the return under this Section shall, at the time of filing such return, pay to the Department the amount of tax imposed by this Act less a discount of 2.1% or $25 per calendar year, whichever is greater, which is allowed to reimburse the operator for the expenses incurred in keeping records, preparing and filing returns, remitting the tax and supplying data to the Department on request.

If any payment provided for in this Section exceeds the operator's liabilities under this Act, as shown on an original return, the Department may authorize the operator to credit such excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the operator, the operator's discount shall be reduced by an amount equal to the difference between the discount as applied to the credit taken and that actually due, and that operator shall be liable for penalties and interest on such difference.

There shall be deposited in the Build Illinois Fund in the State Treasury for each State fiscal year 40% of the amount of total net proceeds from the tax imposed by subsection (a) of Section 3. Of the remaining 60%, $5,000,000 shall be deposited in the Illinois Sports Facilities Fund and credited to the Subsidy Account each fiscal year by making monthly deposits in the amount of 1/8 of $5,000,000 plus cumulative deficiencies in such deposits for prior months, and an additional $8,000,000 shall be deposited in the Illinois Sports Facilities Fund and credited to the Advance Account each fiscal year by making monthly deposits in the amount of 1/8 of $8,000,000 plus any cumulative deficiencies in such deposits for prior months; provided, that for fiscal years ending after June 30, 2001, the amount to be so deposited into the Illinois Sports Facilities Fund and credited to the Advance Account each fiscal year shall be increased from $8,000,000 to the then applicable Advance Amount and the required monthly deposits beginning with July 2001 shall be in the amount of 1/8 of the then applicable Advance Amount plus any cumulative deficiencies in those deposits for prior months. (The deposits of the additional $8,000,000 or the then applicable Advance Amount, as applicable, during each fiscal year shall be treated as advances of funds to the Illinois Sports Facilities Authority for its corporate purposes to the extent paid to the Authority or its trustee and shall be repaid into the General Revenue Fund in the State Treasury by the State Treasurer on behalf of the Authority pursuant to Section 19 of the Illinois Sports Facilities Authority Act, as amended. If in any fiscal year the full amount of the then applicable Advance Amount is not repaid into the General Revenue Fund, then the deficiency shall be paid from the amount in the Local Government Distributive Fund that would otherwise be allocated to the City of Chicago under the State Revenue Sharing Act.)

For purposes of the foregoing paragraph, the term "Advance Amount" means, for fiscal year 2002, $22,179,000, and for subsequent fiscal years through fiscal year 2033, 105.615% of the Advance Amount for the immediately preceding fiscal year, rounded up to the nearest $1,000.

Of the remaining 60% of the amount of total net proceeds prior to August 1, 2011 from the tax imposed by subsection (a) of Section 3 after all required deposits in the Illinois Sports Facilities Fund, the amount equal to 8% of the net revenue realized from this Act plus an amount equal to 8% of the net revenue realized from any tax imposed under Section 4.05 of the Chicago World's Fair-1992 Authority Act during the preceding month shall be deposited in the Local Tourism Fund each month for purposes authorized by Section 605-705 of the Department of Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of the remaining 60% of the amount of total net proceeds beginning on August 1, 2011 from the tax imposed by subsection (a) of Section 3 after all required deposits in the Illinois Sports Facilities Fund, an amount equal to 8% of the net revenue realized from this Act plus an amount equal to 8% of the net revenue realized from any tax imposed under Section 4.05 of the Chicago World's Fair-1992 Authority Act during the preceding month shall be deposited as follows: 18% of such amount shall be deposited into the Chicago Travel Industry Promotion Fund for the purposes described in subsection (n) of Section 5 of the Metropolitan Pier and Exposition Authority Act and the remaining 82% of such amount shall be deposited into the Local Tourism Fund each month for purposes authorized by Section 605-705 of the Department of Commerce and Economic Opportunity Law. Beginning on August 1, 1999 and ending on July 31, 2011, an amount equal to 4.5% of the net revenue realized from the Hotel Operators' Occupation Tax Act during the preceding month shall be deposited into the International Tourism Fund for the purposes authorized in Section 605-707 of the Department of Commerce and Economic Opportunity Law. Beginning on August 1, 2011, an amount equal to 4.5% of the net revenue realized from this Act during the preceding month shall be deposited as follows: 55% of such amount shall be deposited into the Chicago Travel Industry Promotion Fund for the purposes described in subsection (n) of Section 5 of the Metropolitan Pier and Exposition Authority Act and the remaining 45% of such amount deposited into the International Tourism Fund for the purposes authorized in Section 605-707 of the Department of Commerce and Economic Opportunity Law. "Net revenue realized for a month" means the revenue collected by the State under that Act during the previous month less the amount paid out during that same month as refunds to taxpayers for overpayment of liability under that Act.

After making all these deposits, all other proceeds of the tax imposed under subsection (a) of Section 3 shall be deposited in the Tourism Promotion Fund in the State Treasury. All moneys received by the Department from the additional tax imposed under subsection (b) of Section 3 shall be deposited into the Build Illinois Fund in the State Treasury.

The Department may, upon separate written notice to a taxpayer, require the taxpayer to prepare and file with the Department on a form prescribed by the Department within not less than 60 days after receipt of the notice an annual information return for the tax year specified in the notice. Such annual return to the Department shall include a statement of gross receipts as shown by the operator's last State income tax return. If the total receipts of the business as reported in the State income tax return do not agree with the gross receipts reported to the Department for the same period, the operator shall attach to his annual information return a schedule showing a reconciliation of the 2 amounts and the reasons for the difference. The operator's annual information return to the Department shall also disclose pay roll information of the operator's business during the year covered by such return and any additional reasonable information which the Department deems would be helpful in determining the accuracy of the monthly, quarterly or annual tax returns by such operator as hereinbefore provided for in this Section.

If the annual information return required by this Section is not filed when and as required the taxpayer shall be liable for a penalty in an amount determined in accordance with Section 3-4 of the Uniform Penalty and Interest Act until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.

The chief executive officer, proprietor, owner or highest ranking manager shall sign the annual return to certify the accuracy of the information contained therein. Any person who willfully signs the annual return containing false or inaccurate information shall be guilty of perjury and punished accordingly. The annual return form prescribed by the Department shall include a warning that the person signing the return may be liable for perjury.

The foregoing portion of this Section concerning the filing of an annual information return shall not apply to an operator who is not required to file an income tax return with the United States Government.

(Source: P.A. 102-16, eff. 6-17-21.)

Section 905. The Counties Code is amended by changing Section 5-1030 as follows:

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

Sec. 5-1030. Hotel rooms, short-term rentals, tax on gross rental receipts.

(a) The corporate authorities of any county may by ordinance impose a tax upon all persons engaged in such county in the business of renting, leasing or letting rooms in a hotel or short-term rental which is not located within a city, village, or incorporated town that imposes a tax under Section 8-3-14 of the Illinois Municipal Code, as defined in the "The Hotel Operators' Occupation Tax Act or the Short-Term Rental Occupation Tax Act ", at a rate not to exceed 5% of the gross rental receipts from such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel or short-term rental, and 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 practicable for the effective administration of the tax.

(b) With the consent of municipalities representing at least 67% of the population of Winnebago County, as determined by the 2010 federal decennial census and as expressed by resolution of the corporate authorities of those municipalities, the county board of Winnebago County may, by ordinance, impose a tax upon all persons engaged in the county in the business of renting, leasing, or letting rooms in a hotel or short-term rental that imposes a tax under Section 8-3-14 of the Illinois Municipal Code, as defined in the "The Hotel Operators' Occupation Tax Act" or the Short-Term Rental Occupation Tax Act, at a rate not to exceed 2% of the gross rental receipts from renting, leasing, or letting, excluding, however, from gross rental receipts, the proceeds of the renting, leasing, or letting to permanent residents of that hotel or short-term rental, and may provide for the administration and enforcement of the tax, and for the collection thereof from the persons subject to the tax, as the county board determines to be necessary or practicable for the effective administration of the tax. The tax shall be instituted on a county-wide basis and shall be in addition to any tax imposed by this or any other provision of law. The revenue generated under this subsection shall be accounted for and segregated from all other funds of the county and shall be utilized solely for either: (1) encouraging, supporting, marketing, constructing, or operating, either directly by the county or through other taxing bodies within the county, sports, arts, or other entertainment or tourism facilities or programs for the purpose of promoting tourism, competitiveness, job growth, and for the general health and well-being of the citizens of the county; or (2) payment towards debt services on bonds issued for the purposes set forth in this subsection.

(c) A Tourism Facility Board shall be established, comprised of a representative from the county and from each municipality that has approved the imposition of the tax under subsection (b) of this Section.

(1) A Board member's vote is weighted based on the municipality's population relative to the population of the county, with the county representing the population within unincorporated areas of the county. Representatives from the Rockford Park District and Rockford Area Convention and Visitors Bureau shall serve as ex-officio members with no voting rights.

(2) The Board must meet not less frequently than once per year to direct the use of revenues collected from the tax imposed under subsection (b) of this Section that are not already directed for use pursuant to an intergovernmental agreement between the county and another entity represented on the Board, including the ex-officio members, and for any other reason the Board deems necessary. Affirmative actions of the Board shall require a weighted vote of Board members representing not less than 67% of the population of the county.

(3) The Board shall not be a separate unit of local government, shall have no paid staff, and members of the Board shall receive no compensation or reimbursement of expenses from proceeds of the tax imposed under subsection (b) of this Section.

(d) Persons subject to any tax imposed pursuant to authority granted by this Section may reimburse themselves for their tax liability for such tax by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax imposed under the "The Hotel Operators' Occupation Tax Act" or the Short-Term Rental Occupation Tax Act.

Nothing in this Section shall be construed to authorize a county to impose a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State.

An ordinance or resolution imposing a tax hereunder or effecting a change in the rate thereof shall be effective on the first day of the calendar month next following its passage and required publication.

The amounts collected by any county pursuant to this Section shall be expended to promote tourism; conventions; expositions; theatrical, sports and cultural activities within that county or otherwise to attract nonresident overnight visitors to the county.

Any county may agree with any unit of local government, including any authority defined as a metropolitan exposition, auditorium and office building authority, fair and exposition authority, exposition and auditorium authority, or civic center authority created pursuant to provisions of Illinois law and the territory of which unit of local government or authority is co-extensive with or wholly within such county, to impose and collect for a period not to exceed 40 years, any portion or all of the tax authorized pursuant to this Section and to transmit such tax so collected to such unit of local government or authority. The amount so paid shall be expended by any such unit of local government or authority for the purposes for which such tax is authorized. Any such agreement must be authorized by resolution or ordinance, as the case may be, of such county and unit of local government or authority, and such agreement may provide for the irrevocable imposition and collection of said tax at such rate, or amount as limited by a given rate, as may be agreed upon for the full period of time set forth in such agreement; and such agreement may further provide for any other terms as deemed necessary or advisable by such county and such unit of local government or authority. Any such agreement shall be binding and enforceable by either party to such agreement. Such agreement entered into pursuant to this Section shall not in any event constitute an indebtedness of such county subject to any limitation imposed by statute or otherwise.

(Source: P.A. 98-313, eff. 8-12-13.)

Section 910. The Illinois Municipal Code is amended by changing Sections 8-3-13, 8-3-14, and 8-3-14a as follows:

(65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13)

Sec. 8-3-13. The corporate authorities of any municipality containing 500,000 or more inhabitants may impose a tax prior to July 1, 1969, upon all persons engaged in the municipality in the business of renting, leasing or letting rooms in a hotel, as defined in the Hotel Operators' Occupation Tax Act, or a short-term rental, as defined in the Short-Term Rental Occupation Tax Act, at a rate not to exceed 1% of the gross rental receipts from the renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of the renting, leasing or letting to permanent residents of that hotel or short-term rental and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act.

The tax imposed by a municipality under this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration that is issued by the Department to a lessor under the Hotel Operators' Occupation Tax Act, or a business license issued by the Department under the Short-Term Rental Occupation Tax Act, shall permit the registrant to engage in a business that is taxable under any ordinance or resolution enacted under this Section without registering separately with the Department under the ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the manner provided in this Section; and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of and compliance with this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes of procedure, as are prescribed in the Hotel Operators' Occupation Tax Act, the Short-Term Rental Occupation Tax Act, and the Uniform Penalty and Interest Act, as fully as if the provisions contained in those Acts were set forth herein.

Whenever the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out of the Illinois tourism tax fund.

Persons subject to any tax imposed under authority granted by this Section may reimburse themselves for their tax liability for that tax by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax imposed under the Hotel Operators' Occupation Tax Act or the Short-Term Rental Occupation Tax Act.

The Department shall forthwith pay over to the State Treasurer, ex-officio, as trustee, all taxes and penalties collected hereunder. On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named municipalities from which lessors have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of the municipality, less 4% of the balance, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing the provisions of this Section, as provided herein. The Department, at the time of each monthly disbursement to the municipalities, shall prepare and certify to the Comptroller the amount so retained by the State Treasurer, which shall be paid into the General Revenue Fund of the State Treasury.

Within 10 days after receipt by the Comptroller of the disbursement certification to the municipalities and the General Revenue Fund provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the warrants to be drawn for the respective amounts in accordance with the directions contained in the certification.

Nothing in this Section shall 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.

An ordinance or resolution imposing a tax hereunder or effecting a change in the rate thereof shall be effective on the first day of the calendar month next following the expiration of the publication period provided in Section 1-2-4 in respect to municipalities governed by that Section.

The corporate authorities of any municipality that levies a tax authorized by this Section shall transmit to the Department of Revenue on or not later than 5 days after the effective date of the ordinance or resolution a certified copy of the ordinance or resolution imposing the tax; whereupon, the Department of Revenue shall proceed to administer and enforce this Section on behalf of the municipality as of the effective date of the ordinance or resolution. Upon a change in rate of a tax levied hereunder, or upon the discontinuance of the tax, the corporate authorities of the municipality shall, on or not later than 5 days after the effective date of the ordinance or resolution discontinuing the tax or effecting a change in rate, transmit to the Department of Revenue a certified copy of the ordinance or resolution effecting the change or discontinuance. The amounts disbursed to any municipality under this Section shall be expended by the municipality solely to promote tourism, conventions and other special events within that municipality or otherwise to attract nonresidents to visit the municipality.

Any municipality receiving and disbursing money under this Section shall report on or before the first Monday in January of each year to the Advisory Committee of the Illinois Tourism Promotion Fund, created by Section 12 of the Illinois Promotion Act. The reports shall specify the purposes for which the disbursements were made and shall contain detailed amounts of all receipts and disbursements under this Section.

This Section may be cited as the Tourism, Conventions and Other Special Events Promotion Act of 1967.

(Source: P.A. 87-205; 87-733; 87-895.)

(65 ILCS 5/8-3-14) (from Ch. 24, par. 8-3-14)

Sec. 8-3-14. Municipal hotel and short-term rental operators' occupation tax. The corporate authorities of any municipality may impose a tax upon all persons engaged in such municipality in the business of renting, leasing or letting rooms in a hotel, as defined in the "The Hotel Operators' Occupation Tax Act," or a short-term rental, as defined in the Short-Term Rental Occupation Tax Act, at a rate not to exceed 6% in the City of East Peoria and in the Village of Morton and 5% in all other municipalities of the gross rental receipts from such renting, leasing or letting, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel or short-term rental and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act, and 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 practicable for the effective administration of the tax. The municipality may not impose a tax under this Section if it imposes a tax under Section 8-3-14a.

Persons subject to any tax imposed pursuant to authority granted by this Section may reimburse themselves for their tax liability for such tax by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax imposed under the "The Hotel Operators' Occupation Tax Act" or the Short-Term Rental Occupation Tax Act.

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege of engaging in any business which under the constitution of the United States may not be made the subject of taxation by this State.

Except as otherwise provided in this Division, the amounts collected by any municipality pursuant to this Section shall be expended by the municipality solely to promote tourism and conventions within that municipality or otherwise to attract nonresident overnight visitors to the municipality.

No funds received pursuant to this Section shall be used to advertise for or otherwise promote new competition in the hotel business.

(Source: P.A. 101-204, eff. 8-2-19.)

(65 ILCS 5/8-3-14a)

Sec. 8-3-14a. Municipal hotel or short-term rental use tax.

(a) The corporate authorities of any municipality may impose a tax upon the privilege of renting or leasing rooms in a hotel or short-term rental 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, short-term rental operator, or hosting platform acting as an agent for the short-term rental operator 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 short-term rental 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.

(f) As used in this Section, "short-term rental" and "hosting platform" have the meanings set forth in Section 5 of the Short-Term Rental Occupation Tax Act.

(Source: P.A. 101-204, eff. 8-2-19.)

Section 999. Effective date. This Act takes effect January 1, 2024.