99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1801

 

Introduced 2/20/2015, by Sen. Dan Kotowski

 

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

    Amends the Hotel Operators' Occupation Tax Act. Provides that certain certified amounts of the proceeds from the tax shall be deposited into the Tourism Promotion Fund. Provides that those moneys shall be used by the municipality in which a local convention center is located to reimburse the local convention center for the amount of qualified incentives provided by the convention center. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1801LRB099 09228 HLH 31388 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. Except as provided hereinafter in this Section, on
8or before the last day of each calendar month, every person
9engaged in the business of renting, leasing or letting rooms in
10a hotel in this State during the preceding calendar month shall
11file a return with the Department, stating:
12        1. The name of the operator;
13        2. His residence address and the address of his
14    principal place of business and the address of the
15    principal place of business (if that is a different
16    address) from which he engages in the business of renting,
17    leasing or letting rooms in a hotel in this State;
18        3. Total amount of rental receipts received by him
19    during the preceding calendar month from renting, leasing
20    or letting rooms during such preceding calendar month;
21        4. Total amount of rental receipts received by him
22    during the preceding calendar month from renting, leasing
23    or letting rooms to permanent residents during such

 

 

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

 

 

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

 

 

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1under this Section shall, at the time of filing such return,
2pay to the Department the amount of tax imposed by this Act
3less a discount of 2.1% or $25 per calendar year, whichever is
4greater, which is allowed to reimburse the operator for the
5expenses incurred in keeping records, preparing and filing
6returns, remitting the tax and supplying data to the Department
7on request.
8    There shall be deposited in the Build Illinois Fund in the
9State Treasury for each State fiscal year 40% of the amount of
10total net proceeds from the tax imposed by subsection (a) of
11Section 3. Of the remaining 60%, $5,000,000 shall be deposited
12in the Illinois Sports Facilities Fund and credited to the
13Subsidy Account each fiscal year by making monthly deposits in
14the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
15such deposits for prior months, and an additional $8,000,000
16shall be deposited in the Illinois Sports Facilities Fund and
17credited to the Advance Account each fiscal year by making
18monthly deposits in the amount of 1/8 of $8,000,000 plus any
19cumulative deficiencies in such deposits for prior months;
20provided, that for fiscal years ending after June 30, 2001, the
21amount to be so deposited into the Illinois Sports Facilities
22Fund and credited to the Advance Account each fiscal year shall
23be increased from $8,000,000 to the then applicable Advance
24Amount and the required monthly deposits beginning with July
252001 shall be in the amount of 1/8 of the then applicable
26Advance Amount plus any cumulative deficiencies in those

 

 

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1deposits for prior months. (The deposits of the additional
2$8,000,000 or the then applicable Advance Amount, as
3applicable, during each fiscal year shall be treated as
4advances of funds to the Illinois Sports Facilities Authority
5for its corporate purposes to the extent paid to the Authority
6or its trustee and shall be repaid into the General Revenue
7Fund in the State Treasury by the State Treasurer on behalf of
8the Authority pursuant to Section 19 of the Illinois Sports
9Facilities Authority Act, as amended. If in any fiscal year the
10full amount of the then applicable Advance Amount is not repaid
11into the General Revenue Fund, then the deficiency shall be
12paid from the amount in the Local Government Distributive Fund
13that would otherwise be allocated to the City of Chicago under
14the State Revenue Sharing Act.)
15    For purposes of the foregoing paragraph, the term "Advance
16Amount" means, for fiscal year 2002, $22,179,000, and for
17subsequent fiscal years through fiscal year 2032, 105.615% of
18the Advance Amount for the immediately preceding fiscal year,
19rounded up to the nearest $1,000.
20    Notwithstanding any other provision of law, beginning on
21January 1, 2016 and through December 31, 2021, by the fifteenth
22day of each month, the mayor of each municipality where a local
23convention center is located shall certify to the Department
24the amount of any qualified incentives provided by the local
25convention center during the previous month; however, in no
26event may the certified amount submitted on behalf of any local

 

 

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1convention center exceed $1,000,000 in any calendar year. Of
2the remaining 60% of the amount of total net proceeds from the
3tax imposed by subsection (a) of Section 3 after all required
4deposits into the Illinois Sports Facilities Fund have been
5made, the Department shall deposit the certified amount into
6the Tourism Promotion Fund. Moneys deposited into the Tourism
7Promotion Fund under this paragraph shall be used by the
8municipality in which the local convention center is located to
9reimburse the local convention center for the amount of
10qualified incentives provided by the convention center. For the
11purposes of this paragraph, "local convention center" means a
12convention center, located within Illinois, with contiguous
13exhibition space ranging between 50,000 and 100,000 square
14feet. For the purposes of this paragraph, "qualified incentive"
15means an incentive provided for a convention, meeting, or trade
16show that, but for the incentive, would not have occurred in
17the State or been retained in the State.
18    Of the remaining 60% of the amount of total net proceeds
19prior to August 1, 2011 from the tax imposed by subsection (a)
20of Section 3 after all required deposits in the Illinois Sports
21Facilities Fund, the amount equal to 8% of the net revenue
22realized from this Act plus an amount equal to 8% of the net
23revenue realized from any tax imposed under Section 4.05 of the
24Chicago World's Fair-1992 Authority Act during the preceding
25month shall be deposited in the Local Tourism Fund each month
26for purposes authorized by Section 605-705 of the Department of

 

 

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1Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
2the remaining 60% of the amount of total net proceeds beginning
3on August 1, 2011 from the tax imposed by subsection (a) of
4Section 3 after all required deposits in the Illinois Sports
5Facilities Fund, an amount equal to 8% of the net revenue
6realized from this Act plus an amount equal to 8% of the net
7revenue realized from any tax imposed under Section 4.05 of the
8Chicago World's Fair-1992 Authority Act during the preceding
9month shall be deposited as follows: 18% of such amount shall
10be deposited into the Chicago Travel Industry Promotion Fund
11for the purposes described in subsection (n) of Section 5 of
12the Metropolitan Pier and Exposition Authority Act and the
13remaining 82% of such amount shall be deposited into the Local
14Tourism Fund each month for purposes authorized by Section
15605-705 of the Department of Commerce and Economic Opportunity
16Law. Beginning on August 1, 1999 and ending on July 31, 2011,
17an amount equal to 4.5% of the net revenue realized from the
18Hotel Operators' Occupation Tax Act during the preceding month
19shall be deposited into the International Tourism Fund for the
20purposes authorized in Section 605-707 of the Department of
21Commerce and Economic Opportunity Law. Beginning on August 1,
222011, an amount equal to 4.5% of the net revenue realized from
23this Act during the preceding month shall be deposited as
24follows: 55% of such amount shall be deposited into the Chicago
25Travel Industry Promotion Fund for the purposes described in
26subsection (n) of Section 5 of the Metropolitan Pier and

 

 

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1Exposition Authority Act and the remaining 45% of such amount
2deposited into the International Tourism Fund for the purposes
3authorized in Section 605-707 of the Department of Commerce and
4Economic Opportunity Law. "Net revenue realized for a month"
5means the revenue collected by the State under that Act during
6the previous month less the amount paid out during that same
7month as refunds to taxpayers for overpayment of liability
8under that Act.
9    After making all these deposits, all other proceeds of the
10tax imposed under subsection (a) of Section 3 shall be
11deposited in the General Revenue Fund in the State Treasury.
12All moneys received by the Department from the additional tax
13imposed under subsection (b) of Section 3 shall be deposited
14into the Build Illinois Fund in the State Treasury.
15    The Department may, upon separate written notice to a
16taxpayer, require the taxpayer to prepare and file with the
17Department on a form prescribed by the Department within not
18less than 60 days after receipt of the notice an annual
19information return for the tax year specified in the notice.
20Such annual return to the Department shall include a statement
21of gross receipts as shown by the operator's last State income
22tax return. If the total receipts of the business as reported
23in the State income tax return do not agree with the gross
24receipts reported to the Department for the same period, the
25operator shall attach to his annual information return a
26schedule showing a reconciliation of the 2 amounts and the

 

 

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1reasons for the difference. The operator's annual information
2return to the Department shall also disclose pay roll
3information of the operator's business during the year covered
4by such return and any additional reasonable information which
5the Department deems would be helpful in determining the
6accuracy of the monthly, quarterly or annual tax returns by
7such operator as hereinbefore provided for in this Section.
8    If the annual information return required by this Section
9is not filed when and as required the taxpayer shall be liable
10for a penalty in an amount determined in accordance with
11Section 3-4 of the Uniform Penalty and Interest Act until such
12return is filed as required, the penalty to be assessed and
13collected in the same manner as any other penalty provided for
14in this Act.
15    The chief executive officer, proprietor, owner or highest
16ranking manager shall sign the annual return to certify the
17accuracy of the information contained therein. Any person who
18willfully signs the annual return containing false or
19inaccurate information shall be guilty of perjury and punished
20accordingly. The annual return form prescribed by the
21Department shall include a warning that the person signing the
22return may be liable for perjury.
23    The foregoing portion of this Section concerning the filing
24of an annual information return shall not apply to an operator
25who is not required to file an income tax return with the
26United States Government.

 

 

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1(Source: P.A. 97-617, eff. 10-26-11.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.