IL SB3858

Municipalities may impose a tax of up to 6% on hotel room rentals in East Peoria and Morton, and up to 5% in all other municipalities under Section 8-3-14.

Municipalities may impose an alternative hotel use tax of up to 5% on room rentals under Section 8-3-14a, but cannot impose both taxes simultaneously.

Hotel tax revenues collected must be used solely to promote tourism and conventions or attract nonresident overnight visitors, except that no more than 75% of collected amounts may be expended for the municipality's pension and infrastructure costs.

Hotel tax funds cannot be used to advertise for or promote new competition in the hotel business.

The same 75% limit on pension and infrastructure spending applies to both the operators' occupation tax under Section 8-3-14 and the hotel use tax under Section 8-3-14a.