101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4086

 

Introduced 1/16/2020, by Rep. Andrew S. Chesney

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1030  from Ch. 34, par. 5-1030

    Amends the Counties Code. Provides that the corporate authorities of Jo Daviess County may impose up to a 1% additional hotel tax in the county if the tax is approved by referendum initiated by a petition or by ordinance of the corporate authorities of the county. Prohibits taxes from being imposed on gross rental receipts of permanent residents of a hotel, motel, or resort. Provides that the additional hotel tax shall be used by the county for the costs associated with providing infrastructure, police protection, and emergency services in support of tourism and conventions within the county. Effective immediately.


LRB101 14368 AWJ 63254 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4086LRB101 14368 AWJ 63254 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing Section
55-1030 as follows:
 
6    (55 ILCS 5/5-1030)  (from Ch. 34, par. 5-1030)
7    Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
8    (a) The corporate authorities of any county may by
9ordinance impose a tax upon all persons engaged in such county
10in the business of renting, leasing or letting rooms in a hotel
11which is not located within a city, village, or incorporated
12town that imposes a tax under Section 8-3-14 of the Illinois
13Municipal Code, as defined in "The Hotel Operators' Occupation
14Tax Act", at a rate not to exceed 5% of the gross rental
15receipts from such renting, leasing or letting, excluding,
16however, from gross rental receipts, the proceeds of such
17renting, leasing or letting to permanent residents of that
18hotel, and may provide for the administration and enforcement
19of the tax, and for the collection thereof from the persons
20subject to the tax, as the corporate authorities determine to
21be necessary or practicable for the effective administration of
22the tax.
23    (a-5) The corporate authorities of Jo Daviess County may,

 

 

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1upon referendum approval as provided in this subsection, impose
2an additional tax of up to 1% upon the gross rental receipts of
3all persons engaged in the county in the business of renting,
4leasing, or letting rooms in a hotel, motel, or resort located
5in the county. The tax may not be imposed on (i) receipts
6attributable to a hotel, motel, or resort located within a
7municipality that imposes a tax under 8-3-14 of the Illinois
8Municipal Code or (ii) receipts attributable to permanent
9residents of a hotel, motel, or resort. The tax under this
10subsection may not be imposed until the question of imposing
11the tax has been submitted to the electors of the county at a
12general election and approved by a majority of the electors
13voting on the question. Such a referendum shall be initiated
14by: (1) a written petition submitted to the county board
15specifying the desired tax rate of up to 1% and signed by a
16number of electors of the county equal to at least 10% of the
17votes cast for candidates for Governor in the county in the
18preceding gubernatorial election; or (2) an ordinance adopted
19by the county board specifying the desired tax rate of up to
201%. The county board shall file the petition or ordinance with
21the appropriate election authority. The referendum shall be
22substantially in the following form:
23        Shall Jo Daviess County impose an additional tax of
24    (the specified percentage in the petition or ordinance)% on
25    all persons engaged in the county in the business of
26    renting, leasing, or letting rooms in a hotel, motel or

 

 

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1    resort, which is not located within a municipality that
2    imposes a hotel tax?
3    The votes shall be recorded as "Yes" or "No". The
4referendum is approved when a majority of the voters approve
5the referendum.
6    The proceeds of the additional tax shall be used by the
7county for the costs associated with providing infrastructure,
8police protection, and emergency services in support of tourism
9and conventions within the county.
10    (b) With the consent of municipalities representing at
11least 67% of the population of Winnebago County, as determined
12by the 2010 federal decennial census and as expressed by
13resolution of the corporate authorities of those
14municipalities, the county board of Winnebago County may, by
15ordinance, impose a tax upon all persons engaged in the county
16in the business of renting, leasing, or letting rooms in a
17hotel that imposes a tax under Section 8-3-14 of the Illinois
18Municipal Code, as defined in "The Hotel Operators' Occupation
19Tax Act", at a rate not to exceed 2% of the gross rental
20receipts from renting, leasing, or letting, excluding,
21however, from gross rental receipts, the proceeds of the
22renting, leasing, or letting to permanent residents of that
23hotel, and may provide for the administration and enforcement
24of the tax, and for the collection thereof from the persons
25subject to the tax, as the county board determines to be
26necessary or practicable for the effective administration of

 

 

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

 

 

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

 

 

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

 

 

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1advisable by such county and such unit of local government or
2authority. Any such agreement shall be binding and enforceable
3by either party to such agreement. Such agreement entered into
4pursuant to this Section shall not in any event constitute an
5indebtedness of such county subject to any limitation imposed
6by statute or otherwise.
7(Source: P.A. 98-313, eff. 8-12-13.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.