2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 145/ - Hotel Operators' Occupation Tax Act.

(35 ILCS 145/1) (from Ch. 120, par. 481b.31)
Sec. 1. 
		
		This Act may be cited as the
 Hotel Operators' Occupation Tax Act. The tax herein imposed shall be in addition to all
other occupation or privilege taxes imposed by the State of Illinois or by
any municipal corporation or political subdivision thereof.
(Source: P.A. 86-1475.)
(35 ILCS 145/2) (from Ch. 120, par. 481b.32)
Sec. 2. Definitions. As used in this Act, unless the context otherwise requires:
(1) "Hotel" means any building or buildings in which the public may,
for a consideration, obtain living quarters, sleeping or housekeeping
accommodations. The term includes, but is not limited to, inns, motels, tourist homes or courts,
lodging houses, rooming houses and apartment houses, retreat centers, conference centers, and hunting lodges.
(2) "Operator" means any person operating a hotel.
(3) "Occupancy" means the use or possession, or the right to the use
or possession, of any room or rooms in a hotel for any purpose, or the
right to the use or possession of the furnishings or to the services and
accommodations accompanying the use and possession of the room or rooms.
(4) "Room" or "rooms" means any living quarters, sleeping or
housekeeping accommodations.
(5) "Permanent resident" means any person who occupied or has the
right to occupy any room or rooms, regardless of whether or not it is the
same room or rooms, in a hotel for at least 30 consecutive days.
(6) "Rent" or "rental" means the consideration received for
occupancy, valued in money, whether received in money or otherwise,
including all receipts, cash, credits and property or services of any
kind or nature.
(7) "Department" means the Department of Revenue.
(8) "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or private
corporation, limited liability company, or a receiver, executor, trustee,
guardian or other representative appointed by order of any court.
(Source: P.A. 100-213, eff. 8-18-17.)
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
Sec. 3. Rate; exemptions.
(a) A tax is imposed upon persons engaged in the business of renting,
leasing or letting rooms in a hotel at the rate of 5% of 94% 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 proceeds from the tax
imposed under subsection (c) of Section 13 of the Metropolitan Pier and
Exposition Authority Act.
(b) There shall be imposed an
additional tax upon persons engaged in the business of renting, leasing or
letting rooms in a hotel at the rate of 1% of 94% 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 proceeds from the tax imposed under
subsection (c) of Section 13 of the Metropolitan Pier and Exposition
Authority Act.
(c) No funds received pursuant to this Act shall be used to
advertise for or otherwise promote new competition in the hotel business.
(d) However, such tax is not imposed upon the privilege of
engaging in any business in Interstate Commerce or otherwise,
which business may not, under the Constitution and Statutes of
the United States, be made the subject of taxation by this State.
In addition, the tax is not imposed upon gross rental receipts for which
the hotel operator is prohibited from obtaining reimbursement for the tax
from the customer by reason of a federal treaty.
(d-5) On and after July 1, 2017, the tax imposed by this Act shall not apply to gross rental receipts received by an entity that is organized and operated exclusively for religious purposes and possesses an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act when acting as a hotel operator renting, leasing, or letting rooms:
(1) in furtherance of the purposes for which it is     organized; or
(2) to entities that (i) are organized and operated     exclusively for religious purposes, (ii) possess an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act, and (iii) rent the rooms in furtherance of the purposes for which they are organized.
No gross rental receipts are exempt under paragraph (2) of this subsection  (d-5) unless the hotel operator obtains the active Exemption Identification Number from the exclusively religious entity to whom it is renting and maintains that number in its books and records. Gross rental receipts from all rentals other than those described in items (1) or (2) of this subsection (d-5) are subject to the tax imposed by this Act unless otherwise exempt under this Act.
This subsection (d-5) is exempt from the sunset provisions of Section 3-5 of this Act.
(d-10) On and after July 1, 2023, the tax imposed by this Act shall not apply to gross rental receipts received from the renting,
leasing, or letting of rooms to an entity that is organized and operated exclusively by an organization chartered by the United States Congress for the purpose of providing disaster relief and that possesses an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act if the renting, leasing,  or letting of the rooms is in furtherance of the purposes for which the exempt organization is organized. This subsection (d-10) is exempt from the sunset provisions of Section 3-5 of this Act.
(e) Persons subject to the tax imposed by this Act may
reimburse themselves for their tax liability under this Act by
separately stating such tax as an additional charge, which
charge may be stated in combination, in a single amount, with
any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
Illinois Municipal Code, and Section 25.05-10 of "An Act to revise
the law in relation to counties".
(f) If any hotel operator collects an amount (however
designated) which purports to reimburse such operator for hotel
operators' occupation tax liability measured by receipts which
are not subject to hotel operators' occupation tax, or if any
hotel operator, in collecting an amount (however designated)
which purports to reimburse such operator for hotel operators'
occupation tax liability measured by receipts which are subject
to tax under this Act, collects more from the customer than the
operators' hotel operators' occupation tax liability in the
transaction is, the customer shall have a legal right to claim
a refund of such amount from such operator.  However, if such
amount is not refunded to the customer for any reason, the hotel
operator is liable to pay such amount to the Department.
(Source: P.A. 103-9, eff. 6-7-23.)
(35 ILCS 145/3-5)
Sec. 3-5. 
		Sunset of exemptions, credits, and deductions. 
		The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date.  A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter.  If a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.
(Source: P.A. 88-660, eff. 9-16-94.)
(35 ILCS 145/4) (from Ch. 120, par. 481b.34)
Sec. 4. 
		
		Every operator shall keep separate books or records of his business
as an operator so as to show the rents and occupancies taxable under this
Act separately from his transactions not taxable under this Act. If any
operator fails to keep such separate books or records, he shall be liable
to tax at the rate designated in Section 3 hereof upon the entire proceeds from
his hotel. The Department may adopt rules that establish requirements,
including record forms and formats, for records required to be kept and
maintained by taxpayers. For purposes of this Section, "records" means all data
maintained by the taxpayer, including data on paper, microfilm, microfiche or
any type of machine-sensible data compilation.
(Source: P.A. 88-480.)
(35 ILCS 145/5) (from Ch. 120, par. 481b.35)
Sec. 5. 
		
		It shall be unlawful for any person to engage in the business of
renting, leasing or letting rooms in a hotel in this State without a
certificate of registration from the Department.
All of the provisions of Sections 2a and 2b of the Retailers' Occupation
Tax Act, in effect on the effective date of this Act, as subsequently
amended, shall apply to persons in the business of renting, leasing or
letting rooms in a hotel in this State, to the same extent as if such
provisions were included herein.
(Source: Laws 1961, p. 1728.)
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Filing of returns and distribution of revenue. 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, 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.
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.
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.
If any payment provided for in this Section exceeds the operator's liabilities under this Act, as shown on an original return, the Department may authorize the operator to credit such excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the operator, the operator's discount shall be reduced by an amount equal to the difference between the discount as applied to the credit taken and that actually due, and that operator shall be liable for penalties and interest on such difference.
There shall be deposited into the Build Illinois Fund in the State
Treasury for each State fiscal year 40% of the amount of total
net revenue from the tax imposed by subsection (a) of Section 3.
Of the remaining 60%: (i) $5,000,000 shall be deposited into 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 (ii) an amount equal to the then applicable Advance Amount
 shall be deposited into 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 the then applicable Advance Amount plus any cumulative deficiencies
in such deposits for prior months.  (The deposits of the then applicable Advance Amount
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 2033, 105.615% of the Advance Amount for the immediately
preceding fiscal year, rounded up to the nearest $1,000.
Of the remaining 60% of the amount of total net revenue beginning on August 1, 2011 through June 30, 2023, from the tax imposed by subsection (a) of Section 3 after all required deposits into the Illinois Sports Facilities Fund, an amount equal to 8% of the net revenue realized from this 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 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, 2011 and through June 30, 2023, 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" means the revenue collected by the State under this
 Act less the amount paid out as refunds to taxpayers for overpayment of liability under this Act.
Beginning on July 1, 2023, of the remaining 60% of the amount of total net revenue realized from the tax imposed under subsection (a) of Section 3, after all required deposits into the Illinois Sports Facilities Fund:
(1)   an amount equal to 8% of the net revenue     realized     under this Act for the preceding month shall be deposited as follows: 82% to the Local Tourism Fund and 18% to the Chicago Travel Industry Promotion Fund; and
(2)   an amount equal to 4.5% of the net revenue         realized under this Act for the preceding month shall be deposited as follows: 55% to the Chicago Travel Industry Promotion Fund and 45% to the International Tourism Fund.
After making all these deposits, any remaining net revenue realized from the tax imposed under
subsection (a) of Section 3 shall be deposited into the Tourism Promotion Fund in
the State Treasury.  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 payroll 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 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. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
(35 ILCS 145/7) (from Ch. 120, par. 481b.37)
Sec. 7. 
		
		All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11 and 12 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
shall apply to persons in the business of renting, leasing or letting hotel
rooms in this State to the same extent as if such provisions were
included herein.
(Source: P.A. 87-205; 87-895.)
(35 ILCS 145/8) (from Ch. 120, par. 481b.38)
Sec. 8. 
When the amount due is under $300, any person engaged in the
business of renting, leasing or letting
hotel rooms in this State who fails to make a return, or to keep books and
records as required herein, or who makes a fraudulent return, or who
wilfully violates any rule or regulation of the Department for the
administration and enforcement of the provisions of this Act, or any
officer or agent of a corporation engaged in the business of renting,
leasing or letting hotel rooms in this State who signs a fraudulent return
made on behalf of such corporation, is guilty of a Class 4 felony.
Any person who violates any provision of Section 5 of this Act is guilty
of a Class 4 felony. Each and every day any
such person is engaged in
business in violation of said Section 5 shall constitute a separate offense.
When the amount due is under $300, any person who accepts money that
is due to the Department under this
Act from a taxpayer for the purpose of acting as the taxpayer's agent to
make the payment to the Department, but who fails to remit such payment to
the Department when due is guilty of a Class 4 felony.
Any such person who purports to make such payment by issuing or delivering
a check or other order upon a real or fictitious depository for the payment
of money, knowing that it will not be paid by the depository, shall be guilty
of a deceptive practice in violation of Section 17-1 of the Criminal Code
of 2012.
Any hotel operator who collects or attempts to collect an amount
(however designated) which purports to reimburse such operator for hotel
operators' occupation tax liability measured by receipts which such
operator knows are not subject to hotel operators' occupation tax, or any
hotel operator who knowingly over-collects or attempts to over-collect an
amount purporting to reimburse such operator for hotel operators'
occupation tax liability in a transaction which is subject to the tax that
is imposed by this Act, shall be guilty of a Class 4 felony.
When the amount due is $300 or more, any person engaged in the business
of renting, leasing or letting hotel rooms in this State who
fails to make a return, or to keep books and
records as required herein, or who makes a fraudulent return, or who
wilfully violates any rule or regulation of the Department for the
administration and enforcement of the provisions of this Act, or any
officer or agent of a corporation engaged in the business of renting,
leasing or letting hotel rooms in this State who signs a fraudulent return
made on behalf of such corporation is guilty of a Class 3 felony.
When the amount due is $300 or more, any person who accepts money that is
due to the Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make the payment to the Department, but
who fails to remit such payment to the Department is guilty of a Class 3
felony.  Any such person who purports to make such payment by issuing or
delivering a check or other order upon a real or fictitious depository for
the payment of money, knowing that it will not be paid by the depository,
shall be guilty of a deceptive practice in violation of Section 17-1 of the
Criminal Code of 2012.
A prosecution for any act in violation of this Section may be commenced
at any time within 3 years of the commission of that act.
(Source: P.A. 97-1150, eff. 1-25-13.)
(35 ILCS 145/9) (from Ch. 120, par. 481b.39)
Sec. 9. Applicability. Persons engaged in the business of renting, leasing or
letting rooms in a hotel only to permanent residents are exempt from the
provisions of this Act. In addition, persons engaged in the business of renting, leasing, or letting rooms in a hotel whose only rentals are as described in items (1) and (2) of subsection (d-5) of Section 3 of this Act are exempt from the provisions of this Act.
(Source: P.A. 100-213, eff. 8-18-17.)
(35 ILCS 145/10) (from Ch. 120, par. 481b.40)
Sec. 10. 
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and procedures of the
Department of Revenue under this Act, except that (1) paragraph (b) of Section
5-10 of the Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2) subparagraph (a)2 of
Section 5-10 of the Illinois Administrative Procedure Act does not apply to
forms established by the Department for use under this Act, and (3) the
provisions of Section 10-45 of the Illinois Administrative Procedure Act
regarding proposals for decision are excluded and not applicable to the
Department under this Act to the extent Section 10-45 applies to hearings not otherwise subject to the Illinois Independent Tax Tribunal Act of 2012.
(Source: P.A. 97-1129, eff. 8-28-12.)