35 ILCS 145

in effect

35 ILCS 145/1 This Act may be cited as the 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 Definitions

(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, hunting lodges, and short-term rentals. (2) "Operator" means any person engaged in the business of renting, leasing, or letting rooms in 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. "Rent" or "rental" includes any fee, charge, or commission received from a guest by a re-renter of hotel rooms specifically in connection with the re-rental of hotel rooms. (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. (9) "Re-renter of hotel rooms" means a person who is not employed by the hotel operator but who, either directly or indirectly, through agreements or arrangements with third parties, collects or processes the payment of rent for a hotel room located in this State and (i) obtains the right or authority to grant control of, access to, or occupancy of a hotel room in this State to a guest of the hotel or (ii) facilitates the booking of a hotel room located in this State. A person who obtains those rights or authorities is not considered a re-renter of a hotel room if the person operates under a shared hotel brand with the operator. (10) "Hosting platform" or "platform" means a person who provides an online application, software, website, or system through which a short-term rental located in this State is advertised or held out to the public as available to rent for occupancy. For purposes of this definition, "short-term rental" means an owner-occupied, tenant-occupied, or non-owner-occupied dwelling, including, but not limited to, an apartment, house, cottage, or condominium, located in this State, where: (i) at least one room in the dwelling is rented to an occupant for a period of less than 30 consecutive days; and (ii) all accommodations are reserved in advance; provided, however, that a dwelling shall be considered a single room if rented as such. (11) "Shared hotel brand" means an identifying trademark that a hotel operator is expressly licensed to operate under in accordance with the terms of a hotel franchise or management agreement. (Source: P.A. 103-592, eff. 7-1-24; 104-6, eff. 7-1-25; 104-417, eff. 8-15-25.)

35 ILCS 145/3

(35 ILCS 145/3) (from Ch. 120, par. 481b.33) (Text of Section from P.A. 104-468, Article 35, Section 35-5) Sec. 3. Rate; exemptions. (a) A tax is imposed upon hotel operators at the rate of 5% of 94% of the gross rental receipts from engaging in business as a hotel operator, excluding, however, from gross rental receipts, the proceeds of renting, leasing or letting hotel rooms to permanent residents of a 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 hotel operators at the rate of 1% of 94% of the gross rental receipts received by the hotel operator from engaging in business as a hotel operator, 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-5) Beginning on July 1, 2024 and through June 30, 2026, if the renting, leasing, or letting of a hotel room is done through a re-renter of hotel rooms, then, subject to the provisions of Sections 3-2 and 3-3, the re-renter is the hotel operator for the purposes of the taxes under subsections (a) and (b). If the re-renter is headquartered outside of this State and has no presence in this State other than its business as a re-renter, conducted remotely, then, subject to the provisions of Sections 3-2 and 3-3, such re-renter is the hotel operator for the purposes of the taxes under subsections (a) and (b) if it meets one of the following thresholds: (1) the cumulative gross receipts from rentals in Illinois by the re-renter of hotel rooms are $100,000 or more; or (2) the re-renter of hotel rooms cumulatively enters into 200 or more separate transactions for rentals in Illinois. A re-renter of hotel rooms who is headquartered outside of this State and has no presence in this State other than its business as a re-renter, conducted remotely, shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the threshold of either paragraph (1) or (2) of this subsection (b-5) for the preceding 12-month period. If such re-renter of hotel rooms meets the threshold of either paragraph (1) or (2) for a 12-month period, he or she is subject to tax under this Act and is required to remit the tax imposed under this Act and file returns for the 12-month period beginning on the first day of the next month after he or she determines that he or she meets the threshold of paragraph (1) or (2). At the end of that 12-month period, such re-renter of hotel rooms shall determine whether he or she continued to meet the threshold of either paragraph (1) or (2) during the preceding 12-month period. If he or she met the threshold in either paragraph (1) or (2) for the preceding 12-month period, he or she is a hotel operator in this State and is required to remit the tax imposed under this Act and file returns for the subsequent 12-month period. If, at the end of a 12-month period during which such re-renter is required to remit the tax imposed under this Act, the re-renter determines that he or she did not meet the threshold in either paragraph (1) or (2) during the preceding 12-month period, he or she shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the threshold of either paragraph (1) or (2) for the preceding 12-month period. (b-10) Beginning July 1, 2026, if the renting, leasing, or letting of a hotel room is done through a hotel marketplace facilitator that has met the tax remittance threshold under this subsection (b-10), then the hotel marketplace facilitator is the hotel operator for the purposes of the taxes under this Act. A hotel marketplace facilitator is engaged in the business of renting, leasing, or letting rooms in a hotel in Illinois and meets the tax remittance threshold for purposes of this Act if, during the previous 12-month period, the cumulative gross rental receipts from renting, leasing, or letting rooms in Illinois hotels on its own behalf or on behalf of marketplace hotel operators to guests equals $100,000 or more. A hotel marketplace facilitator that meets the tax remittance threshold of this subsection is required to remit the applicable State hotel operators' occupation taxes under this Act and local hotel operators' occupation taxes administered by the Department on all rentals, leases, or lettings of Illinois hotel rooms made by the hotel marketplace facilitator or facilitated for marketplace hotel operators to guests. A hotel marketplace facilitator who meets the tax remittance threshold and rents, leases, or lets Illinois hotel rooms to guests is subject to all applicable procedures and requirements of this Act. A hotel marketplace facilitator shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether it meets the tax remittance threshold in this subsection (b-10) for the preceding 12-month period. If the hotel marketplace facilitator meets the tax remittance threshold for a 12-month period, then it is subject to tax under this Act and is required to remit the tax imposed under this Act and all hotel operators' occupation tax imposed by local taxing jurisdictions in Illinois, provided that those local taxes are administered by the Department, and to file all applicable returns for one year. At the end of that one-year period, the hotel marketplace facilitator shall determine whether it met the tax remittance threshold for the preceding 12-month period. If the hotel marketplace facilitator met the tax remittance threshold for the preceding 12-month period, then it is subject to the tax under this Act and is required to continue to collect and remit all applicable State and local hotel operators' occupation taxes and file returns for the subsequent year. If, at the end of a one-year period, a hotel marketplace facilitator that was required to collect and remit the tax imposed under this Act determines that it did not meet the tax remittance threshold during the preceding 12-month period, then the hotel marketplace facilitator shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether it meets the tax remittance threshold for the preceding 12-month period. A hotel marketplace facilitator shall be entitled to any credits, deductions, or adjustments to rental receipts otherwise provided to the marketplace hotel operator, in addition to any such adjustments provided directly to the hotel marketplace facilitator. This includes, but is not limited to, adjustments such as discounts, coupons, and rebates. In addition, a hotel marketplace facilitator is entitled to the discount provided in Section 6 of this Act on all hotel marketplace rentals, leases, or lettings, and the marketplace hotel operator shall not include rentals, leases, or lettings made through a hotel marketplace facilitator when computing any discount on remaining rentals, leases, or lettings. Hotel marketplace facilitators shall report and remit the applicable State and local hotel operators' occupation taxes on leases, rentals, or lettings facilitated for marketplace hotel operators separately from any hotel operators' occupation tax on taxable rentals, leases, or lettings made directly by the hotel marketplace facilitator or its affiliates. The hotel marketplace facilitator is liable for the remittance of all applicable State hotel operators' occupation taxes under this Act and local hotel operators' occupation taxes administered by the Department on rentals, leases, or lettings through the hotel marketplace and is subject to audit on all of those rentals, leases, or lettings. The Department shall not audit marketplace hotel operators for their marketplace rentals, leases, or lettings if the hotel marketplace facilitator remitted the applicable State and local hotel operators' occupation taxes unless the hotel marketplace facilitator seeks relief as a result of incorrect information provided to the hotel marketplace facilitator by a marketplace hotel operator as set forth in this Section. The hotel marketplace facilitator shall not be held liable for tax on any rentals, leases, or lettings made by a marketplace hotel operator that take place outside of the hotel marketplace and that are not a part of any agreement between a hotel marketplace facilitator and a marketplace hotel operator. In addition, hotel marketplace facilitators shall not be held liable to State and local governments of Illinois for having charged and remitted an incorrect amount of State and local hotel operators' occupation tax if, at the time of the rentals, leases, or lettings, the tax is computed based on erroneous data provided by the State on tax rates, boundaries, or taxing jurisdictions or incorrect information provided to the hotel marketplace facilitator by the marketplace hotel operator. (b-15) A hotel marketplace facilitator shall: (1) provide notice to each marketplace hotel operator at the time of the agreement between the hotel marketplace facilitator and marketplace hotel operator that the hotel marketplace facilitator assumes the rights and duties of a hotel operator under this Act with respect to rentals, leases, or lettings made by the marketplace hotel operator through the hotel marketplace; (2) certify, upon request, to the marketplace hotel operator that the hotel marketplace facilitator assumes the rights and duties of a hotel operator under this Act with respect to rentals, leases, or lettings made by the marketplace hotel operator through the hotel marketplace; and (3) remit taxes imposed by this Act as required by this Act for all rentals, leases, and lettings made through the hotel marketplace. (b-20) For any rentals, leases, and lettings made through a hotel marketplace involving 2 or more parties that meet the definition of hotel marketplace facilitator, nothing in this Section shall prohibit those parties from making an agreement regarding which party shall be responsible for collecting and remitting taxes imposed by this Act, so long as the party so responsible is registered with the State for purposes of remitting the taxes imposed by this Act. If the parties enter into an agreement described in this subsection, the party that agrees to collect and remit the taxes imposed by this Act shall be the sole party liable for the taxes imposed by this Act, and the other parties to the agreement are not liable for the tax. Any party subject to such an agreement must keep a copy of the agreement in its books and records and provide a copy to the Department upon request. (b-25) A marketplace hotel operator shall retain books and records, including certificates provided by the hotel marketplace facilitator under paragraph (2) of subsection (b-15), for all rentals, leases, and lettings made through a hotel marketplace in accordance with the requirements of this Act. (b-30) A hotel marketplace facilitator is subject to audit on all hotel marketplace rentals, leases, and lettings for which it is the hotel operator but shall not be liable for tax or subject to audit on rentals, leases, or lettings made by marketplace hotel operators outside of the hotel marketplace. (b-35) Nothing in this Section shall allow the Department to collect hotel operators' occupation taxes from both the hotel marketplace facilitator and marketplace hotel operator on the same transaction. (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 guest or, until July 1, 2026, from the re-renter than the operators' hotel operators' occupation tax liability in the transaction is, the guest or re-renter, as applicable, shall have a legal right to claim a refund of such amount from such operator. However, if such amount is not refunded to the guest or re-renter, as applicable, for any reason, the hotel operator is liable to pay such amount to the Department. (Source: P.A. 103-9, eff. 6-7-23; 103-592, eff. 7-1-24; 104-468, Article 35, Section 35-5, eff. 6-16-26.) (Text of Section from P.A. 104-468, Article 70, Section 70-50) Sec. 3. Rate; exemptions. (a) A tax is imposed upon hotel operators at the rate of 5% of 94% of the gross rental receipts from engaging in business as a hotel operator, excluding, however, from gross rental receipts, the proceeds of renting, leasing or letting hotel rooms to permanent residents of a 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 hotel operators at the rate of 1% of 94% of the gross rental receipts received by the hotel operator from engaging in business as a hotel operator, 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-5) Beginning on July 1, 2024 and through June 30, 2026, if the renting, leasing, or letting of a hotel room is done through a re-renter of hotel rooms, then, subject to the provisions of Sections 3-2 and 3-3, the re-renter is the hotel operator for the purposes of the taxes under subsections (a) and (b). If the re-renter is headquartered outside of this State and has no presence in this State other than its business as a re-renter, conducted remotely, then, subject to the provisions of Sections 3-2 and 3-3, such re-renter is the hotel operator for the purposes of the taxes under subsections (a) and (b) if it meets one of the following thresholds: (1) the cumulative gross receipts from rentals in Illinois by the re-renter of hotel rooms are $100,000 or more; or (2) the re-renter of hotel rooms cumulatively enters into 200 or more separate transactions for rentals in Illinois. A re-renter of hotel rooms who is headquartered outside of this State and has no presence in this State other than its business as a re-renter, conducted remotely, shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the threshold of either paragraph (1) or (2) of this subsection (b-5) for the preceding 12-month period. If such re-renter of hotel rooms meets the threshold of either paragraph (1) or (2) for a 12-month period, he or she is subject to tax under this Act and is required to remit the tax imposed under this Act and file returns for the 12-month period beginning on the first day of the next month after he or she determines that he or she meets the threshold of paragraph (1) or (2). At the end of that 12-month period, such re-renter of hotel rooms shall determine whether he or she continued to meet the threshold of either paragraph (1) or (2) during the preceding 12-month period. If he or she met the threshold in either paragraph (1) or (2) for the preceding 12-month period, he or she is a hotel operator in this State and is required to remit the tax imposed under this Act and file returns for the subsequent 12-month period. If, at the end of a 12-month period during which such re-renter is required to remit the tax imposed under this Act, the re-renter determines that he or she did not meet the threshold in either paragraph (1) or (2) during the preceding 12-month period, he or she shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the threshold of either paragraph (1) or (2) for the preceding 12-month period. (b-40) Beginning on July 1, 2026, if the re-renter is headquartered outside of this State and has no presence in this State other than its business as a re-renter, conducted remotely, then, subject to the provisions of Sections 3-2 and 3-3, that re-renter is the hotel operator for the purposes of the taxes under subsections (a) and (b) if the cumulative gross receipts from rentals in Illinois by the re-renter of hotel rooms are $100,000 or more. A re-renter of hotel rooms who is headquartered outside of this State and has no presence in this State other than its business as a re-renter, conducted remotely, shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether it meets the threshold of this subsection for the preceding 12-month period. If the re-renter of hotel rooms meets the threshold for a 12-month period, it is subject to tax under this Act and is required to remit the tax imposed under this Act and file returns for the 12-month period beginning on the first day of the next month after it determines that it meets the threshold. At the end of that 12-month period, the re-renter of hotel rooms shall determine whether it continued to meet the threshold during the preceding 12-month period. If the re-renter met the threshold for the preceding 12-month period, it is a hotel operator in this State and is required to remit the tax imposed under this Act and file returns for the subsequent 12-month period. If, at the end of a 12-month period during which such re-renter is required to remit the tax imposed under this Act, the re-renter determines that it did not meet the threshold during the preceding 12-month period, it shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether it meets the threshold for the preceding 12-month period. (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 guest or re-renter than the operators' hotel operators' occupation tax liability in the transaction is, the guest or re-renter, as applicable, shall have a legal right to claim a refund of such amount from such operator. However, if such amount is not refunded to the guest or re-renter, as applicable, for any reason, the hotel operator is liable to pay such amount to the Department. (Source: P.A. 103-9, eff. 6-7-23; 103-592, eff. 7-1-24; 104-468, Article 70, Section 70-50, eff. 6-16-26.)

35 ILCS 145/3-2

(35 ILCS 145/3-2) Sec. 3-2. No resale exemption; tax incurred by re-renters of hotel rooms. A hotel operator who rents, leases, or lets rooms subject to tax under this Act to a re-renter of hotel rooms incurs the tax under this Act on the gross rental receipts it receives from that re-renter of hotel rooms and cannot claim any resale exemption. In such situations, the re-renter of hotel rooms incurs tax under this Act on its gross rental receipts as provided in Section 3 of this Act. (Source: P.A. 103-592, eff. 7-1-24.)

35 ILCS 145/3-3

(35 ILCS 145/3-3) Sec. 3-3. Re-renter of hotel rooms; credit for tax reimbursement. A re-renter of hotel rooms may take a credit against the tax it incurs on the rental of a hotel room under this Act for the amount it paid under subsection (e) of Section 3 of this Act to a hotel operator as reimbursement for the tax incurred under this Act for the rental of that room for the purposes of re-rental. (Source: P.A. 103-592, eff. 7-1-24.)

35 ILCS 145/3-5

(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

(35 ILCS 145/4) (from Ch. 120, par. 481b.34) Sec. 4. Books and records. 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 business. 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. 103-592, eff. 7-1-24.)

35 ILCS 145/5

(35 ILCS 145/5) (from Ch. 120, par. 481b.35) Sec. 5. Certificate of registration; retailers' occupation tax registration provisions apply. It shall be unlawful for any person to engage in business as a hotel operator 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 business as hotel operators in this State, to the same extent as if such provisions were included herein. (Source: P.A. 103-592, eff. 7-1-24.)

35 ILCS 145/6

(35 ILCS 145/6) (from Ch. 120, par. 481b.36) Sec. 6. Returns; allocation of proceeds. (a) Except as provided hereinafter in this Section, on or before the last day of each calendar month, every person engaged as a hotel operator in this State during the preceding calendar month shall file a return with the Department, stating: 1. the name of the operator; 2. the operator's residence address and the address of the operator's principal place of business and the address of the principal place of business (if that is a different address) from which he engages in business as a hotel operator in this State (including, if required by the Department, the address of each hotel from which rental receipts were received); 3. total amount of rental receipts received by the operator during the preceding calendar month from engaging in business as a hotel operator during such preceding calendar month; 4. total amount of rental receipts received by the operator 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 the operator during the preceding calendar month and upon the basis of which the tax is imposed; 7. the amount of tax due; 8. for transactions prior to July 1, 2026, credit for any reimbursement of tax paid by a re-renter of hotel rooms to hotel operators for rentals purchased for re-rental, as provided in Section 3-3 of this Act; 9. 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 the operator's 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 the operator's 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 the operator's return, in the case of any operator who ceases to engage in a kind of business which makes the operator responsible for filing returns under this Act, such operator shall file a final return under this Act with the Department not more than one month after discontinuing such business. Where the same person has more than one 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 the operator's return, the operator shall determine the value of any consideration other than money received by the operator in connection with engaging in business as a hotel operator and the operator shall include such value in the operator's 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. (b) Until July 1, 2024, the Department shall deposit the total net revenue realized from the tax imposed under this Act as provided in this subsection (b). Beginning on July 1, 2024, the Department shall deposit the total net revenue realized from the tax imposed under this Act as provided in subsection (c). 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, as defined in subsection (d), 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.) 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. Beginning on July 1, 2023 and until July 1, 2024, 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. (c) Beginning on July 1, 2024, the total net revenue realized from the tax imposed under this Act for the preceding month shall be deposited each month as follows: (1) 50% shall be deposited into the Build Illinois Fund; and (2) the remaining 50% shall be deposited in the following order of priority: (A) First: (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 one-eighth of $5,000,000 plus cumulative deficiencies in those deposits for prior months; and (ii) an amount equal to the then applicable Advance Amount, as defined in subsection (d), 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 one-eighth 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 Illinois Sports Facilities 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; if, in any fiscal year, the full amount of the 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; and (B) after all required deposits into the Illinois Sports Facilities Fund under paragraph (A) have been made each month, the remainder shall be deposited as follows: (i) 56% into the Tourism Promotion Fund; (ii) 23% into the Local Tourism Fund; (iii) 14% into the Chicago Travel Industry Promotion Fund; and (iv) 7% into the International Tourism Fund. (d) As used in subsections (b) and (c): "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. "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. (e) 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 the operator's 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. 103-8, eff. 6-7-23; 103-592, eff. 7-1-24; 103-642, eff. 7-1-24; 104-417, eff. 8-15-25; 104-468, eff. 6-16-26.)

35 ILCS 145/7

(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

(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 Applicability

(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

(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.)

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.ilga.gov/legislation/ilcs/ilcs.aspFetched: 10/17/2026