103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1746

 

Introduced 2/9/2023, by Sen. 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 in support of tourism and conventions within the county and emergency services in support of tourism and conventions within the county. Effective immediately.


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A BILL FOR

 

SB1746LRB103 30660 HLH 57118 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
5Section 5-1030 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
22of the tax.
23    (a-5) The corporate authorities of Jo Daviess County may,

 

 

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1upon referendum approval as provided in this subsection,
2impose an additional tax of up to 1% upon the gross rental
3receipts of all persons engaged in the county in the business
4of renting, leasing, or letting rooms in a hotel, motel, or
5resort located in the county. The tax may not be imposed on (i)
6receipts attributable to a hotel, motel, or resort located
7within a municipality that imposes a tax under 8-3-14 of the
8Illinois Municipal Code or (ii) receipts attributable to
9permanent residents of a hotel, motel, or resort. The tax
10under this subsection may not be imposed until the question of
11imposing the tax has been submitted to the electors of the
12county at a general election and approved by a majority of the
13electors voting on the question. Such a referendum shall be
14initiated by: (1) a written petition submitted to the county
15board specifying the desired tax rate of up to 1% and signed by
16a number 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)%
25    on 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
8in support of tourism and conventions within the county and
9emergency services in support of tourism and conventions
10within the county.
11    (b) With the consent of municipalities representing at
12least 67% of the population of Winnebago County, as determined
13by the 2010 federal decennial census and as expressed by
14resolution of the corporate authorities of those
15municipalities, the county board of Winnebago County may, by
16ordinance, impose a tax upon all persons engaged in the county
17in the business of renting, leasing, or letting rooms in a
18hotel that imposes a tax under Section 8-3-14 of the Illinois
19Municipal Code, as defined in "The Hotel Operators' Occupation
20Tax Act", at a rate not to exceed 2% of the gross rental
21receipts from renting, leasing, or letting, excluding,
22however, from gross rental receipts, the proceeds of the
23renting, leasing, or letting to permanent residents of that
24hotel, and may provide for the administration and enforcement
25of the tax, and for the collection thereof from the persons
26subject to the tax, as the county board determines to be

 

 

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

 

 

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

 

 

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

 

 

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1further provide for any other terms as deemed necessary or
2advisable by such county and such unit of local government or
3authority. Any such agreement shall be binding and enforceable
4by either party to such agreement. Such agreement entered into
5pursuant to this Section shall not in any event constitute an
6indebtedness of such county subject to any limitation imposed
7by statute or otherwise.
8(Source: P.A. 98-313, eff. 8-12-13.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.