103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3475

 

Introduced 2/8/2024, by Sen. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 145/6  from Ch. 120, par. 481b.36

    Amends the Hotel Operators' Occupation Tax Act. Makes changes concerning the distribution of proceeds under the Act. Effective immediately.


LRB103 35867 HLH 65952 b

 

 

A BILL FOR

 

SB3475LRB103 35867 HLH 65952 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Hotel Operators' Occupation Tax Act is
5amended by changing Section 6 as follows:
 
6    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
7    Sec. 6. Filing of returns and distribution of revenue.
8    (a) Except as provided hereinafter in this Section, on or
9before the last day of each calendar month, every person
10engaged in the business of renting, leasing or letting rooms
11in a hotel in this State during the preceding calendar month
12shall file a return with the Department, stating:
13        1. The name of the operator;
14        2. His residence address and the address of his
15    principal place of business and the address of the
16    principal place of business (if that is a different
17    address) from which he engages in the business of renting,
18    leasing or letting rooms in a hotel in this State;
19        3. Total amount of rental receipts received by him
20    during the preceding calendar month from renting, leasing
21    or letting rooms during such preceding calendar month;
22        4. Total amount of rental receipts received by him
23    during the preceding calendar month from renting, leasing

 

 

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1    or letting rooms to permanent residents during such
2    preceding calendar month;
3        5. Total amount of other exclusions from gross rental
4    receipts allowed by this Act;
5        6. Gross rental receipts which were received by him
6    during the preceding calendar month and upon the basis of
7    which the tax is imposed;
8        7. The amount of tax due;
9        8. Such other reasonable information as the Department
10    may require.
11    If the operator's average monthly tax liability to the
12Department does not exceed $200, the Department may authorize
13his returns to be filed on a quarter annual basis, with the
14return for January, February and March of a given year being
15due by April 30 of such year; with the return for April, May
16and June of a given year being due by July 31 of such year;
17with the return for July, August and September of a given year
18being due by October 31 of such year, and with the return for
19October, November and December of a given year being due by
20January 31 of the following year.
21    If the operator's average monthly tax liability to the
22Department does not exceed $50, the Department may authorize
23his returns to be filed on an annual basis, with the return for
24a given year being due by January 31 of the following year.
25    Such quarter annual and annual returns, as to form and
26substance, shall be subject to the same requirements as

 

 

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1monthly returns.
2    Notwithstanding any other provision in this Act concerning
3the time within which an operator may file his return, in the
4case of any operator who ceases to engage in a kind of business
5which makes him responsible for filing returns under this Act,
6such operator shall file a final return under this Act with the
7Department not more than 1 month after discontinuing such
8business.
9    Where the same person has more than 1 business registered
10with the Department under separate registrations under this
11Act, such person shall not file each return that is due as a
12single return covering all such registered businesses, but
13shall file separate returns for each such registered business.
14    In his return, the operator shall determine the value of
15any consideration other than money received by him in
16connection with the renting, leasing or letting of rooms in
17the course of his business and he shall include such value in
18his return. Such determination shall be subject to review and
19revision by the Department in the manner hereinafter provided
20for the correction of returns.
21    Where the operator is a corporation, the return filed on
22behalf of such corporation shall be signed by the president,
23vice-president, secretary or treasurer or by the properly
24accredited agent of such corporation.
25    The person filing the return herein provided for shall, at
26the time of filing such return, pay to the Department the

 

 

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1amount of tax herein imposed. The operator filing the return
2under this Section shall, at the time of filing such return,
3pay to the Department the amount of tax imposed by this Act
4less a discount of 2.1% or $25 per calendar year, whichever is
5greater, which is allowed to reimburse the operator for the
6expenses incurred in keeping records, preparing and filing
7returns, remitting the tax and supplying data to the
8Department on request.
9    If any payment provided for in this Section exceeds the
10operator's liabilities under this Act, as shown on an original
11return, the Department may authorize the operator to credit
12such excess payment against liability subsequently to be
13remitted to the Department under this Act, in accordance with
14reasonable rules adopted by the Department. If the Department
15subsequently determines that all or any part of the credit
16taken was not actually due to the operator, the operator's
17discount shall be reduced by an amount equal to the difference
18between the discount as applied to the credit taken and that
19actually due, and that operator shall be liable for penalties
20and interest on such difference.
21    (b) Until July 1, 2024, the Department shall deposit the
22total net revenue realized from the tax imposed under this Act
23as provided in this subsection (b). Beginning on July 1, 2024,
24the Department shall deposit the total net revenue realized
25from the tax imposed under this Act as provided in subsection
26(c).

 

 

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1    There shall be deposited into the Build Illinois Fund in
2the State Treasury for each State fiscal year 40% of the amount
3of total net revenue from the tax imposed by subsection (a) of
4Section 3. Of the remaining 60%: (i) $5,000,000 shall be
5deposited into the Illinois Sports Facilities Fund and
6credited to the Subsidy Account each fiscal year by making
7monthly deposits in the amount of 1/8 of $5,000,000 plus
8cumulative deficiencies in such deposits for prior months, and
9(ii) an amount equal to the then applicable Advance Amount, as
10defined in subsection (d), shall be deposited into the
11Illinois Sports Facilities Fund and credited to the Advance
12Account each fiscal year by making monthly deposits in the
13amount of 1/8 of the then applicable Advance Amount plus any
14cumulative deficiencies in such deposits for prior months.
15(The deposits of the then applicable Advance Amount during
16each fiscal year shall be treated as advances of funds to the
17Illinois Sports Facilities Authority for its corporate
18purposes to the extent paid to the Authority or its trustee and
19shall be repaid into the General Revenue Fund in the State
20Treasury by the State Treasurer on behalf of the Authority
21pursuant to Section 19 of the Illinois Sports Facilities
22Authority Act, as amended. If in any fiscal year the full
23amount of the then applicable Advance Amount is not repaid
24into the General Revenue Fund, then the deficiency shall be
25paid from the amount in the Local Government Distributive Fund
26that would otherwise be allocated to the City of Chicago under

 

 

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1the State Revenue Sharing Act.)
2    For purposes of the foregoing paragraph, the term "Advance
3Amount" means, for fiscal year 2002, $22,179,000, and for
4subsequent fiscal years through fiscal year 2033, 105.615% of
5the Advance Amount for the immediately preceding fiscal year,
6rounded up to the nearest $1,000.
7    Of the remaining 60% of the amount of total net revenue
8beginning on August 1, 2011 through June 30, 2023, from the tax
9imposed by subsection (a) of Section 3 after all required
10deposits into the Illinois Sports Facilities Fund, an amount
11equal to 8% of the net revenue realized from this Act during
12the preceding month shall be deposited as follows: 18% of such
13amount shall be deposited into the Chicago Travel Industry
14Promotion Fund for the purposes described in subsection (n) of
15Section 5 of the Metropolitan Pier and Exposition Authority
16Act and the remaining 82% of such amount shall be deposited
17into the Local Tourism Fund each month for purposes authorized
18by Section 605-705 of the Department of Commerce and Economic
19Opportunity Law. Beginning on August 1, 2011 and through June
2030, 2023, an amount equal to 4.5% of the net revenue realized
21from this Act during the preceding month shall be deposited as
22follows: 55% of such amount shall be deposited into the
23Chicago Travel Industry Promotion Fund for the purposes
24described in subsection (n) of Section 5 of the Metropolitan
25Pier and Exposition Authority Act and the remaining 45% of
26such amount deposited into the International Tourism Fund for

 

 

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1the purposes authorized in Section 605-707 of the Department
2of Commerce and Economic Opportunity Law. "Net revenue
3realized" means the revenue collected by the State under this
4Act less the amount paid out as refunds to taxpayers for
5overpayment of liability under this Act.
6    Beginning on July 1, 2023 and until July 1, 2024, of the
7remaining 60% of the amount of total net revenue realized from
8the tax imposed under subsection (a) of Section 3, after all
9required deposits into the Illinois Sports Facilities Fund:
10        (1) an amount equal to 8% of the net revenue realized
11    under this Act for the preceding month shall be deposited
12    as follows: 82% to the Local Tourism Fund and 18% to the
13    Chicago Travel Industry Promotion Fund; and
14        (2) an amount equal to 4.5% of the net revenue
15    realized under this Act for the preceding month shall be
16    deposited as follows: 55% to the Chicago Travel Industry
17    Promotion Fund and 45% to the International Tourism Fund.
18    After making all these deposits, any remaining net revenue
19realized from the tax imposed under subsection (a) of Section
203 shall be deposited into the Tourism Promotion Fund in the
21State Treasury. All moneys received by the Department from the
22additional tax imposed under subsection (b) of Section 3 shall
23be deposited into the Build Illinois Fund in the State
24Treasury.
25    (c) Beginning on July 1, 2024, the total net revenue
26realized from the tax imposed under this Act for the preceding

 

 

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1month shall be deposited each month as follows:
2        (1) 50% shall be deposited into the Build Illinois
3    Fund; and
4        (2) the remaining 50% shall be deposited in the
5    following order of priority:
6            (A) First:
7                (i) $5,000,000 shall be deposited into the
8            Illinois Sports Facilities Fund and credited to
9            the Subsidy Account each fiscal year by making
10            monthly deposits in the amount of one-eighth of
11            $5,000,000 plus cumulative deficiencies in those
12            deposits for prior months; and
13                (ii) an amount equal to the then applicable
14            Advance Amount, as defined in subsection (d),
15            shall be deposited into the Illinois Sports
16            Facilities Fund and credited to the Advance
17            Account each fiscal year by making monthly
18            deposits in the amount of one-eighth of the then
19            applicable Advance Amount plus any cumulative
20            deficiencies in such deposits for prior months;
21            the deposits of the then applicable Advance Amount
22            during each fiscal year shall be treated as
23            advances of funds to the Illinois Sports
24            Facilities Authority for its corporate purposes to
25            the extent paid to the Illinois Sports Facilities
26            Authority or its trustee and shall be repaid into

 

 

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1            the General Revenue Fund in the State Treasury by
2            the State Treasurer on behalf of the Authority
3            pursuant to Section 19 of the Illinois Sports
4            Facilities Authority Act; if, in any fiscal year,
5            the full amount of the Advance Amount is not
6            repaid into the General Revenue Fund, then the
7            deficiency shall be paid from the amount in the
8            Local Government Distributive Fund that would
9            otherwise be allocated to the City of Chicago
10            under the State Revenue Sharing Act; and
11            (B) after all required deposits into the Illinois
12        Sports Facilities Fund under paragraph (A) have been
13        made each month, the remainder shall be deposited as
14        follows:
15                (i) 56% into the Tourism Promotion Fund;
16                (ii) 23% into the Local Tourism Fund;
17                (iii) 14% into the Chicago Travel Industry
18            Promotion Fund; and
19                (iv) 7% into the International Tourism Fund.
20    (d) As used in subsections (b) and (c):
21    "Advance Amount" means, for fiscal year 2002, $22,179,000,
22and for subsequent fiscal years through fiscal year 2033,
23105.615% of the Advance Amount for the immediately preceding
24fiscal year, rounded up to the nearest $1,000.
25    "Net revenue realized" means the revenue collected by the
26State under this Act less the amount paid out as refunds to

 

 

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1taxpayers for overpayment of liability under this Act.
2    (e) The Department may, upon separate written notice to a
3taxpayer, require the taxpayer to prepare and file with the
4Department on a form prescribed by the Department within not
5less than 60 days after receipt of the notice an annual
6information return for the tax year specified in the notice.
7Such annual return to the Department shall include a statement
8of gross receipts as shown by the operator's last State income
9tax return. If the total receipts of the business as reported
10in the State income tax return do not agree with the gross
11receipts reported to the Department for the same period, the
12operator shall attach to his annual information return a
13schedule showing a reconciliation of the 2 amounts and the
14reasons for the difference. The operator's annual information
15return to the Department shall also disclose payroll
16information of the operator's business during the year covered
17by such return and any additional reasonable information which
18the Department deems would be helpful in determining the
19accuracy of the monthly, quarterly or annual tax returns by
20such operator as hereinbefore provided for in this Section.
21    If the annual information return required by this Section
22is not filed when and as required the taxpayer shall be liable
23for a penalty in an amount determined in accordance with
24Section 3-4 of the Uniform Penalty and Interest Act until such
25return is filed as required, the penalty to be assessed and
26collected in the same manner as any other penalty provided for

 

 

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1in this Act.
2    The chief executive officer, proprietor, owner or highest
3ranking manager shall sign the annual return to certify the
4accuracy of the information contained therein. Any person who
5willfully signs the annual return containing false or
6inaccurate information shall be guilty of perjury and punished
7accordingly. The annual return form prescribed by the
8Department shall include a warning that the person signing the
9return may be liable for perjury.
10    The foregoing portion of this Section concerning the
11filing of an annual information return shall not apply to an
12operator who is not required to file an income tax return with
13the United States Government.
14(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.