summary
Introduced
12/04/2025
12/04/2025
In Committee
02/11/2026
02/11/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Municipal Code. Provides that if a municipality (rather than any municipality located within DuPage County) belongs to a not-for-profit organization headquartered in the county in which the municipality is located and if that not-for-profit organization is recognized by the Department of Commerce and Economic Opportunity as a certified local tourism and convention bureau entitled to receive State tourism grant funds, then not less than 50% (rather than 75%) of the amounts collected pursuant to the municipal hotel operators' occupation tax and municipal hotel use tax shall be expended by the municipality to promote tourism and conventions within that municipality or otherwise to attract nonresident overnight visitors to the municipality, and the remainder of the amounts collected by the municipality pursuant to the municipal hotel operators' occupation tax and municipal hotel use tax may be expended by the municipality for economic development or capital infrastructure. Removes provisions repealing the municipal hotel operators' occupation tax and the municipal hotel use tax on January 1, 2027. Effective immediately.
AI Summary
This bill amends the Illinois Municipal Code to modify how municipalities can use hotel tax revenues. Specifically, it changes the requirements for municipalities that belong to a not-for-profit tourism organization recognized by the Department of Commerce and Economic Opportunity. The bill reduces the mandatory tourism spending from 75% to 50% of hotel tax collections, allowing municipalities more flexibility in using these funds. The remaining 50% can now be spent on economic development or capital infrastructure projects. Importantly, the bill removes the previous provision that would have automatically repealed the municipal hotel tax on January 1, 2027, effectively making the tax permanent. The changes apply to municipalities that are members of a local tourism bureau in their county and are eligible for state tourism grant funds. This modification provides local governments with greater discretion in allocating hotel tax revenues while still maintaining a significant commitment to promoting tourism and attracting visitors.
Committee Categories
Budget and Finance, Government Affairs
Sponsors (6)
Martha Deuter (D)*,
Diane Blair-Sherlock (D),
Mary Beth Canty (D),
Sharon Chung (D),
Norma Hernandez (D),
Tracy Katz Muhl (D),
Last Action
To Tax Policy: Other Taxes Subcommittee (on 02/26/2026)
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