IL HB3729

Municipalities may impose a hotel occupancy tax on gross rental receipts at a rate not exceeding 6% in East Peoria and Morton, and 5% in all other municipalities.

Tax applies to persons engaged in renting, leasing, or letting hotel rooms, excluding permanent resident rentals and certain proceeds from the Metropolitan Pier and Exposition Authority Act.

Hotel operators may recover their tax liability by separately stating the tax as an additional charge to customers, potentially combined with state hotel occupation taxes.

Collected tax revenue must be expended solely to promote tourism, conventions, and attract nonresident overnight visitors, except in counties with 3 million or more residents where qualifying cities with certified tourism bureaus may use funds for any municipal purpose.

Tax revenue cannot be used to advertise for or promote new competition in the hotel business.