SB2638 103RD GENERAL ASSEMBLY

LRB103 34585 AWJ 64423 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2638

Introduced 11/7/2023, by Sen. Julie A. Morrison

SYNOPSIS AS INTRODUCED:

65 ILCS 5/8-3-14a

Amends the Illinois Municipal Code. Provides that moneys collected by a municipality from hotel use taxes may be expended to contribute to fund actuarial liabilities of the municipality's pension fund established under Article 3, 4, 5, or 6 of the Illinois Pension Code or Article 7 of the Illinois Pension Code with regard to sheriff's law enforcement employees if the municipality has not established a pension fund under Article 3, 4, 5, or 6 of the Illinois Pension Code.

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 Illinois Municipal Code is amended by changing Section 8-3-14a as follows:

(65 ILCS 5/8-3-14a)

Sec. 8-3-14a. Municipal hotel use tax.

(a) The corporate authorities of any municipality may impose a tax upon the privilege of renting or leasing rooms in a hotel within the municipality at a rate not to exceed 5% of the rental or lease payment. The corporate authorities 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 practical for the effective administration of the tax.

(b) Each hotel in the municipality shall collect the tax from the person making the rental or lease payment at the time that the payment is tendered to the hotel. The hotel shall, as trustee, remit the tax to the municipality.

(c) The tax authorized under this Section does not apply to any rental or lease payment by a permanent resident of that hotel or to any payment made to any hotel that is subject to the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act. A municipality may not impose a tax under this Section if it imposes a tax under Section 8-3-14. Nothing in this Section may be construed to authorize a municipality to impose a tax upon the privilege of engaging in any business that under the Constitution of the United States may not be made the subject of taxation by this State.

(d) Except as otherwise provided in this Division, the moneys collected by a municipality under this Section may be expended solely to promote tourism and conventions within that municipality, or otherwise to attract nonresident overnight visitors to the municipality, or to contribute to fund actuarial liabilities of the municipality's pension fund established under Article 3, 4, 5, or 6 of the Illinois Pension Code or Article 7 of the Illinois Pension Code with regard to sheriff's law enforcement employees if the municipality has not established a pension fund under Article 3, 4, 5, or 6 of the Illinois Pension Code. No moneys received under this Section may be used to advertise for or otherwise promote new competition in the hotel business.

(e) As used in this Section, "hotel" has the meaning set forth in Section 2 of the Hotel Operators' Occupation Tax Act.

(Source: P.A. 101-204, eff. 8-2-19.)