SB1746 103RD GENERAL ASSEMBLY

LRB103 30660 HLH 57118 b

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.

A BILL FOR

AN ACT concerning local government.

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

Section 5. 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, 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 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 Hotel Operators' 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, 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.

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

Shall Jo Daviess County impose an additional tax of (the specified percentage in the petition or ordinance)% on all persons engaged in the county in the business of renting, leasing, or letting rooms in a hotel, motel or resort, which is not located within a municipality that imposes a hotel tax?

The votes shall be recorded as "Yes" or "No". The referendum is approved when a majority of the voters approve the referendum.

The proceeds of the additional 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.

(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 that imposes a tax under Section 8-3-14 of the Illinois Municipal Code, as defined in "The Hotel Operators' 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, 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 Hotel Operators' 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 99. Effective date. This Act takes effect upon becoming law.