Bill Amendment: IL HB3492 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: HOTEL TAX-PILOT PROGRAM

Status: 2015-03-27 - House Committee Amendment No. 2 Rule 19(a) / Re-referred to Rules Committee [HB3492 Detail]

Download: Illinois-2015-HB3492-House_Amendment_001.html

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Rep. Fred Crespo

Filed: 3/18/2015

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AMENDMENT TO HOUSE BILL 3492
AMENDMENT NO. ______. Amend House Bill 3492 by replacing
everything after the enacting clause with the following:
"Section 5. The Hotel Operators' Occupation Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Except as provided hereinafter in this Section, on
or before the last day of each calendar month, every person
engaged in the business of renting, leasing or letting rooms in
a hotel in this State during the preceding calendar month shall
file a return with the Department, stating:
1. The name of the operator;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of renting,

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leasing or letting rooms in a hotel in this State;
3. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms during such preceding calendar month;
4. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms to permanent residents during such
preceding calendar month;
5. Total amount of other exclusions from gross rental
receipts allowed by this Act;
6. Gross rental receipts which were received by him
during the preceding calendar month and upon the basis of
which the tax is imposed;
7. The amount of tax due;
8. Such other reasonable information as the Department
may require.
If the operator's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 30 of such year; with the return for April, May
and June of a given year being due by July 31 of such year; with
the return for July, August and September of a given year being
due by October 31 of such year, and with the return for
October, November and December of a given year being due by
January 31 of the following year.

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If the operator's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 31 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which an operator may file his return, in the
case of any operator who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such operator shall file a final return under this Act with the
Department not more than 1 month after discontinuing such
business.
Where the same person has more than 1 business registered
with the Department under separate registrations under this
Act, such person shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
In his return, the operator shall determine the value of
any consideration other than money received by him in
connection with the renting, leasing or letting of rooms in the
course of his business and he shall include such value in his
return. Such determination shall be subject to review and
revision by the Department in the manner hereinafter provided
for the correction of returns.

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Where the operator is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
The person filing the return herein provided for shall, at
the time of filing such return, pay to the Department the
amount of tax herein imposed. The operator filing the return
under this Section shall, at the time of filing such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 2.1% or $25 per calendar year, whichever is
greater, which is allowed to reimburse the operator for the
expenses incurred in keeping records, preparing and filing
returns, remitting the tax and supplying data to the Department
on request.
There shall be deposited in the Build Illinois Fund in the
State Treasury for each State fiscal year 40% of the amount of
total net proceeds from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%, $5,000,000 shall be deposited
in the Illinois Sports Facilities Fund and credited to the
Subsidy Account each fiscal year by making monthly deposits in
the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
such deposits for prior months, and an additional $8,000,000
shall be deposited in the Illinois Sports Facilities Fund and
credited to the Advance Account each fiscal year by making
monthly deposits in the amount of 1/8 of $8,000,000 plus any
cumulative deficiencies in such deposits for prior months;

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provided, that for fiscal years ending after June 30, 2001, the
amount to be so deposited into the Illinois Sports Facilities
Fund and credited to the Advance Account each fiscal year shall
be increased from $8,000,000 to the then applicable Advance
Amount and the required monthly deposits beginning with July
2001 shall be in the amount of 1/8 of the then applicable
Advance Amount plus any cumulative deficiencies in those
deposits for prior months. (The deposits of the additional
$8,000,000 or the then applicable Advance Amount, as
applicable, during each fiscal year shall be treated as
advances of funds to the Illinois Sports Facilities Authority
for its corporate purposes to the extent paid to the Authority
or its trustee and shall be repaid into the General Revenue
Fund in the State Treasury by the State Treasurer on behalf of
the Authority pursuant to Section 19 of the Illinois Sports
Facilities Authority Act, as amended. If in any fiscal year the
full amount of the then applicable Advance Amount is not repaid
into the General Revenue Fund, then the deficiency shall be
paid from the amount in the Local Government Distributive Fund
that would otherwise be allocated to the City of Chicago under
the State Revenue Sharing Act.)
For purposes of the foregoing paragraph, the term "Advance
Amount" means, for fiscal year 2002, $22,179,000, and for
subsequent fiscal years through fiscal year 2032, 105.615% of
the Advance Amount for the immediately preceding fiscal year,
rounded up to the nearest $1,000.

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Notwithstanding any other provision of law, beginning on
January 1, 2016 and through December 31, 2021, by the fifteenth
day of each month, the mayor of each municipality where a
municipal convention center is located shall certify to the
Department of Commerce and Economic Opportunity and the
Department the amount of any qualified incentives provided by
the municipal convention center during the previous month;
however, in no event may the certified amount submitted on
behalf of any local convention center exceed $200,000 in any
calendar year. The Department of Commerce and Economic
Opportunity and the Department may each request that the
Auditor General conduct an audit of the accuracy of the
certification. Of the remaining 60% of the amount of total net
proceeds from the tax imposed by subsection (a) of Section 3
after all required deposits into the Illinois Sports Facilities
Fund have been made, the Department shall deposit the certified
amount into the Tourism Promotion Fund. Moneys deposited into
the Tourism Promotion Fund under this paragraph shall be used
by the Department of Commerce and Economic Opportunity to make
grants to municipalities for the purpose of reimbursing the
municipal convention center for the amount of qualified
incentives provided by the convention center. For the purposes
of this paragraph, "municipal convention center" means a
convention or civic center owned by a unit of local government
with contiguous exhibition space ranging between 40,000 and
125,000 square feet. For the purposes of this paragraph,

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"qualified incentive" means an incentive provided for a
convention, meeting, or trade show that, but for the incentive,
would not have occurred in the State or been retained in the
State. The Department, in coordination with the Department of
Commerce and Economic Opportunity, shall adopt rules to
implement the changes pursuant to this paragraph.
Of the remaining 60% of the amount of total net proceeds
prior to August 1, 2011 from the tax imposed by subsection (a)
of Section 3 after all required deposits in the Illinois Sports
Facilities Fund, the amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding
month shall be deposited in the Local Tourism Fund each month
for purposes authorized by Section 605-705 of the Department of
Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
the remaining 60% of the amount of total net proceeds beginning
on August 1, 2011 from the tax imposed by subsection (a) of
Section 3 after all required deposits in the Illinois Sports
Facilities Fund, an amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding
month shall be deposited as follows: 18% of such amount shall
be deposited into the Chicago Travel Industry Promotion Fund
for the purposes described in subsection (n) of Section 5 of

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the Metropolitan Pier and Exposition Authority Act and the
remaining 82% of such amount shall be deposited into the Local
Tourism Fund each month for purposes authorized by Section
605-705 of the Department of Commerce and Economic Opportunity
Law. Beginning on August 1, 1999 and ending on July 31, 2011,
an amount equal to 4.5% of the net revenue realized from the
Hotel Operators' Occupation Tax Act during the preceding month
shall be deposited into the International Tourism Fund for the
purposes authorized in Section 605-707 of the Department of
Commerce and Economic Opportunity Law. Beginning on August 1,
2011, an amount equal to 4.5% of the net revenue realized from
this Act during the preceding month shall be deposited as
follows: 55% of such amount shall be deposited into the Chicago
Travel Industry Promotion Fund for the purposes described in
subsection (n) of Section 5 of the Metropolitan Pier and
Exposition Authority Act and the remaining 45% of such amount
deposited into the International Tourism Fund for the purposes
authorized in Section 605-707 of the Department of Commerce and
Economic Opportunity Law. "Net revenue realized for a month"
means the revenue collected by the State under that Act during
the previous month less the amount paid out during that same
month as refunds to taxpayers for overpayment of liability
under that Act.
After making all these deposits, all other proceeds of the
tax imposed under subsection (a) of Section 3 shall be
deposited in the General Revenue Fund in the State Treasury.

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All moneys received by the Department from the additional tax
imposed under subsection (b) of Section 3 shall be deposited
into the Build Illinois Fund in the State Treasury.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the operator's last State income
tax return. If the total receipts of the business as reported
in the State income tax return do not agree with the gross
receipts reported to the Department for the same period, the
operator shall attach to his annual information return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The operator's annual information
return to the Department shall also disclose pay roll
information of the operator's business during the year covered
by such return and any additional reasonable information which
the Department deems would be helpful in determining the
accuracy of the monthly, quarterly or annual tax returns by
such operator as hereinbefore provided for in this Section.
If the annual information return required by this Section
is not filed when and as required the taxpayer shall be liable
for a penalty in an amount determined in accordance with
Section 3-4 of the Uniform Penalty and Interest Act until such

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return is filed as required, the penalty to be assessed and
collected in the same manner as any other penalty provided for
in this Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to an operator
who is not required to file an income tax return with the
United States Government.
(Source: P.A. 97-617, eff. 10-26-11.)
Section 10. The Illinois Promotion Act is amended by
changing Section 4a as follows:
(20 ILCS 665/4a) (from Ch. 127, par. 200-24a)
Sec. 4a. Funds.
(1) All moneys deposited in the Tourism Promotion Fund
pursuant to this subsection are allocated to the Department for
utilization, as appropriated, in the performance of its powers
under Section 4; except that during fiscal year 2013, the

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Department shall reserve $9,800,000 of the total funds
available for appropriation in the Tourism Promotion Fund for
appropriation to the Historic Preservation Agency for the
operation of the Abraham Lincoln Presidential Library and
Museum and State historic sites.
As soon as possible after the first day of each month,
beginning July 1, 1997, upon certification of the Department of
Revenue, the Comptroller shall order transferred and the
Treasurer shall transfer from the General Revenue Fund to the
Tourism Promotion Fund an amount equal to 13% of the net
revenue realized from the Hotel Operators' Occupation Tax Act
plus an amount equal to 13% of the net revenue realized from
any tax imposed under Section 4.05 of the Chicago World's
Fair-1992 Authority Act during the preceding month. "Net
revenue realized for a month" means the revenue collected by
the State under that Act during the previous month less the
amount paid out during that same month as refunds to taxpayers
for overpayment of liability under that Act.
(1.1) (Blank).
(2) As soon as possible after the first day of each month,
beginning July 1, 1997, upon certification of the Department of
Revenue, the Comptroller shall order transferred and the
Treasurer shall transfer from the General Revenue Fund to the
Tourism Promotion Fund an amount equal to 8% of the net revenue
realized from the Hotel Operators' Occupation Tax plus an
amount equal to 8% of the net revenue realized from any tax

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imposed under Section 4.05 of the Chicago World's Fair-1992
Authority Act during the preceding month. "Net revenue realized
for a month" means the revenue collected by the State under
that Act during the previous month less the amount paid out
during that same month as refunds to taxpayers for overpayment
of liability under that Act.
All monies deposited in the Tourism Promotion Fund under
this subsection (2) shall be used solely as provided in this
subsection to advertise and promote tourism throughout
Illinois. Appropriations of monies deposited in the Tourism
Promotion Fund pursuant to this subsection (2) shall be used
solely for advertising to promote tourism, including but not
limited to advertising production and direct advertisement
costs, but shall not be used to employ any additional staff,
finance any individual event, or lease, rent or purchase any
physical facilities. The Department shall coordinate its
advertising under this subsection (2) with other public and
private entities in the State engaged in similar promotion
activities. Print or electronic media production made pursuant
to this subsection (2) for advertising promotion shall not
contain or include the physical appearance of or reference to
the name or position of any public officer. "Public officer"
means a person who is elected to office pursuant to statute, or
who is appointed to an office which is established, and the
qualifications and duties of which are prescribed, by statute,
to discharge a public duty for the State or any of its

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political subdivisions.
(3) Notwithstanding anything in this Section to the
contrary, amounts transferred from the General Revenue Fund to
the Tourism Promotion Fund pursuant to this Section shall not
exceed $26,300,000 in State fiscal year 2012.
(4) The Department shall make grants, pursuant to Section 6
of the Hotel Operators' Occupation Tax Act, from the Tourism
Promotion Fund to a municipality where a municipal convention
center is located for the purpose of reimbursing expenditures
paid by the municipal convention center in providing qualified
incentives. The terms "municipal convention center" and
"qualified incentive" shall have the same meanings given to
those terms in Section 6 of the Hotel Operators' Occupation Tax
Act. As part of the grant application process, and in addition
to the certification required by Section 6 of the Hotel
Operators' Occupation Tax Act, the mayor of the municipality
shall certify (1) the net proceeds received under the Hotel
Operators' Occupation Tax Act for the renting, leasing, or
letting of hotel rooms in the municipality for the month in
which the convention, meeting, or trade show occurs and (2) the
average of the net proceeds received under the Hotel Operators'
Occupation Tax Act for the renting, leasing, or letting of
hotel rooms in the municipality for the same month in the 3
immediately preceding years.
If the Department or the Department of Revenue determines
that qualified incentive funds, in whole or in part, were

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disbursed by means other than in accordance with the standards
of this Section and Section 6 of the Hotel Operators'
Occupation Tax Act, then the amount transferred to the Tourism
Promotion Fund shall be reduced during the next subsequent
transfer in direct proportion to that amount determined to be
in violation of the terms set forth in this Section.
(Source: P.A. 97-641, eff. 12-19-11; 97-732, eff. 6-30-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.".