G-1131 - 07/10/2018 - TAX - Ordinances Supporting DocumentsBOT AGENDA Page 1
BOARD OF TRUSTEES MEETING
SAMUEL E. DEAN BOARD ROOM
BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
July 10, 2018
SUBJECT: Text Amendment - Chapter 5 Municipal Hotel Tax
FROM: Riccardo F. Ginex, Village Manager
Greg Jones, Village Attorney
BUDGET SOURCE/BUDGET IMPACT: NA
RECOMMENDED MOTION: Motion to Approve Ordinance 2018- FI-HM-
TX-G-1131, An Ordinance Approving a Text Amendment to Chapter 5 of the Village
Code of Ordinances of the Village of Oak Brook, Illinois, Regarding the Municipal
Hotel Tax.
Background/History:
As part of the settlement agreement with the On-Line Travel Companies (OTCs), we
are amending our Municipal Hotel Tax Ordinances to specifically tax the OTCs
merchant-model compensation for hotel reservation transactions and to make the
OTCs responsible for the collection and remittance of tax on the amounts they earn
for the on-line services that they provide.
Attached is the revised text amendment.
Recommendation:
The text amendment is passed.
ITEM 8.A.8
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
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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 by 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:
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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.
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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 limiting 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.
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APPROVED THIS _______ Day of ____________________, 2018
Gopal G. Lalmalani
Village President
PASSED THIS ____ Day of ___________________, 2018
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
4831-3799-4590, v. 1