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G-1131 - 07/10/2018 - TEXT AMENDMENT - Ordinances ORDINANCE 2018 - FI-HM-TX-G-1131 AN ORDINANCE APPROVING A TEXT AMENDMENT TO CHAPTER 5 TO THE VILLAGE CODE OF ORDINANCES OF THE VILLAGE OF OAK BROOK, ILLINOIS, REGARDING THE MUNICIPAL HOTEL TAX WHEREAS, the Village of Oak Brook, Illinois ("Village') is a body politic and corporate, organized and existing pursuant to the Illinois Municipal Code, 65 ILCS 5/1-1-1, et seq.; and WHEREAS, the Illinois Municipal Code (65 ILCS 5/8-3-14) authorizes the Village to impose certain taxes associated with hotel operations; and WHEREAS, Section 5-5 of the Village Code of Ordinances establishes certain taxes on hotel operations; and WHEREAS, the Village Board wishes to amend the Village Code of Ordinances to clarify that the taxes imposed by Section 5-5 apply to a variety of entities involved in hotel operations, including, without limitation, online travel agencies; and WHEREAS, the Village President and Board of Trustees have reviewed the proposed amendment to the Village Code of Ordinances and have determined that it is in the best interests of the Village and its residents to approve the text amendment set forth in this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Ordinance as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: Amendment to Section 5-5 of the Village Code of Ordinances of the Village of Oak Brook, Illinois. Section 5-5 of the Village Code of Ordinances of the Village of Oak Brook is deleted in its entirety and replaced with the following (additions underlined): Title 5 MUNICIPAL TAXES Chapter 5 MUNICIPAL HOTEL TAX 5-5-1: DEFINITIONS: For purposes of this chapter, the following definitions shall apply: GROSS RENTAL RECEIPTS: The total amount of consideration for occupancy, valued in money whether received in money or otherwise, including all receipts, cash, credits, and property or services of any kind or nature including but not limited to amounts charged for the making, servicing or facilitating reservations HOTEL: Any building or buildings in which the public may for a consideration obtain living quarters, sleeping or housekeeping accommodations The term includes inns motels tourist homes or courts, lodging houses rooming houses and apartment houses HOTEL AND TOURISM DISTRICT: The public rights of way and adjacent properties contained within the following boundary: beginning at the point of intersection of the Village's eastern and northern boundaries then westward along the northern corporate boundary of the Village to Illinois Route 83, then south along Illinois Route 83 to 31st Street then west along 31st Street to Midwest Road, then south along Midwest Road to 35th Street then east to Illinois Route 83 then south along Illinois Route 83 to the southern boundary of the Village then east to the Village's eastern boundary, then north along the Village's eastern boundary to the point of intersection of the Village's eastern and northern boundaries PERMANENT RESIDENT: Any person who occupies or has the right to occupy any room or rooms in a hotel for at least thirty (30) consecutive days PERSON: Any natural individual firm business partnership association joint stock company joint adventure, public or private corporation or a receiver, executor, trustee guardian or other representative appointed by order of any court. ROOM OR ROOMS: Any living quarters sleeping or housekeeping accommodations 5-5-2: TAX REQUIRED: AMOUNT: There is hereby levied and imposed upon the use and privilege of engaging in the business of leasing renting making facilitating or servicing the leasing or renting of a hotel or motel room in the village, a tax of three (3%) percent on the gross rental receipts (not including taxes or other nonroom rental charges added to the hotel or motel bill) for each such hotel or motel room rented for every twenty four (24) hour period or any fraction thereof, excluding however, from the gross rental receipts, the proceeds of such renting or leasing or letting to permanent residents of that hotel or motel. The tax levied herein shall be paid in addition to any and all other taxes and charges. 5-5-3: EXEMPTION: A taxpayer subject to the tax imposed this chapter may claim an exemption for gross rental receipts subject to said tax if gross rental receipts are derived from binding and guaranteed room contract(s) entered into on or before September 1 1986. In order to claim this exemption the taxpayer must submit written proof of said binding and guaranteed contract in a form satisfactory to the corporate authorities on the monthly tax return required in Section 5-5-4 during the month in which said exempt gross receipts are received by the taxpayer. Failure bV the taxpayer to claim said exemption in the month in which said gross receipts are received shall constitute an automatic waiver and bar to receipt of said exemption 5-5-4: TAX RETURN: A. Each person or other entity that is subject to the tax imposed by this chapter shall make a tax return as required by this Section to the village treasurer on or before the last day of each succeeding calendar month stating: Page 2 of 5 1. Name; 2. Principal place of business; 3. Gross receipts during the prior month upon the basis of which the tax is imposed 4. Amount of tax; 5. Period for which return is filed; and 6. Such other reasonable and related information as the village treasurer may require B. Each person making the return shall, at the time of making such return pay to the village treasurer the amount of tax herein imposed. C. If a person subject to the tax imposed by this chapter has an average monthly tax liability of sixty ($60.00) dollars or less, the village treasurer may authorize the person to file the returns to be filed on a quarter annual basis with the return for January February, and March of a given year being due on April 30 of such year, with the return for April May and June of a given year being due by July 31 of such year, with the return for July August and September of a given year being due by October 31 of such year, and with the return for October, November, and December of a given year being due by January 31 of the following year. 5-5-5: REIMBURSEMENT OF TAX: Persons subject to the tax imposed by this chapter may reimburse themselves for their tax liability for such tax by separately stating such tax as an additional charge which charge may be stated in combination, in a single amount with the state tax imposed under "the hotel operators occupation tax act". 5-5-6: BOOKS AND RECORDS: A. Every person subject to the tax imposed by this chapter shall keep separate books or records of his business so as to show the rents and occupancies taxable under this chapter separately from his transactions not taxable hereunder. If any such person fails to keep such separate books or records, he shall be liable to the tax at the rate designated in Section 5-5-2 of this chapter upon the entire proceeds from his hotel. B. The village treasurer, or his authorized representative may enter the premises of any hotel or motel for inspection and examination of records in order to effectuate the proper administration of this chapter, and to assure the enforcement of the collection of the tax imposed. It shall be unlawful for any person to prevent hinder or interfere with the village treasurer, or his authorized deputy or representative, in the discharge of his duties in the performance of this chapter. It shall be the duty of every person subject to the tax imposed by this chapter to keep accurate and complete books and records to which the village treasurer, or his authorized representative, shall at all reasonable times have full access which records shall include a daily sheet showing the number of hotel or motel rooms rented during the twenty four (24) hour period including multiple rentals of the same hotel or motel room where such shall occur, and the actual hotel or motel tax receipts collected for the date in question. Page 3 of 5 5-5-7: INTEREST AND PENALTIES: A. Late payment, underpayment or nonpayment of any tax due hereunder shall be subject to interest and penalties as set forth in Code Section 5-6, Locally Imposed and Administered Tax Rights and Responsibilities. Any person violating any other provision of this chapter, upon conviction thereof, shall be punished by a fine of not more than the maximum amount permitted by Code Section 1-3-1 for each offense, and a separate offense shall be deemed to be committed on each day during which a violation exists, occurs, or continues. B. Nothing in this section shall be construed as limitinq any additional or further remedies that the village may have relating to the enforcement of this chapter, or the collection of the amount of any tax due hereunder. C. Whenever any person shall fail to pay any tax as herein provided, the village attorney shall, on the request of the village treasurer, bring or cause to be brought an action to enforce the payment of the tax on behalf of the village in any court of competent jurisdiction. 5-5-8: APPLICATION OF PROCEEDS: A. The amounts collected by the village from the tax levied by this chapter will be expended by the village solely to promote tourism and conventions within the village or otherwise to attract nonresident overnight visitors to the village. B. Two-thirds (2/3) of the amounts collected from the tax levied pursuant to this chapter will be dedicated to promote tourism and conventions or overnight stays within the village by providing funds to the village's beautification initiative in the hotel and tourism district, including, without limitation, the installation and maintenance of improvements in the hotel and tourism district such as landscape and hardscape features. One-third (1/3) of the amounts collected from the tax levied pursuant to this chapter will be dedicated for general purposes to promote tourism and conventions within the village or otherwise to attract nonresident overnight visitors to the village, regardless of whether the project is located within the hotel and tourism district. Section 3. Conflict. All ordinances and parts of ordinances in conflict with this Ordinance are hereby repealed. Section 4. Severability If any part, subsection, or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the remaining sections, subsections and clauses shall not be affected thereby. Section 5. Effective Date This Ordinance shall be in full force and effect following its passage and approval as required by law, and the provisions of the Village Code of Ordinances amended herein shall be reprinted with the changes. Page 4 of 5 APPROVED THIS 10th Day of July 12018 Gopal G. Lalmalani Village President PASSED THIS 10th Day of July , 2018 Ayes: Trustees Baar, Cuevas, Manzo, Saiyed, Tiesenga, Yusuf Nays: None Absent: None ATTEST: k,r cot)�. Charlotte K. Pruss Village Clerk 4831-3799-4590,v. 1 Page 5 of 5