IL SB1217

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

Municipalities may alternatively impose a hotel use tax up to 5% on rental or lease payments for hotel rooms, with hotels collecting and remitting the tax as trustees; a municipality cannot impose both types of tax.

Collected revenues must be expended solely to promote tourism and conventions or attract nonresident overnight visitors, and cannot be used to advertise for or promote new hotel competition.

DuPage County municipalities that belong to a certified local tourism and convention bureau must expend at least 75% of hotel tax revenues for tourism promotion, with the remainder available for economic development or capital infrastructure through January 1, 2023.