IL SB2483

Municipalities can impose a hotel operators' occupation tax up to 6% in East Peoria and Morton, and 5% in other municipalities on gross rental receipts from hotel rooms, excluding permanent resident rentals.

Municipalities can alternatively impose a hotel use tax up to 5% on the privilege of renting or leasing hotel rooms, collected by hotels from guests at time of payment.

A municipality cannot impose both the operators' occupation tax and the use tax simultaneously; it must choose one or the other.

Tax revenues must be expended solely to promote tourism and conventions or attract nonresident overnight visitors, with prohibition on using funds to promote new hotel competition.

For DuPage County municipalities belonging to a certified local tourism bureau, at least 75% of collected tax revenue must fund tourism promotion, with remaining funds available for economic development or capital infrastructure until December 31, 2019.