(A) Title. Pursuant to ILCS Ch. 65, Act 5, § 8-3-14, this section shall be known and cited as the “Crestwood Hotel Accommodations Tax Ordinance” and the tax imposed herein shall be known and cited as the “Hotel Accommodations Tax”.
(B) Rules, regulations and definitions. The Village of Crestwood may promulgate rules and regulations not inconsistent with the provisions of this chapter concerning enforcement and application of this chapter. The phrase "rules and regulations" includes, but is not limited to, case-by-case determination of whether or not the tax imposed by this chapter applies.
(1) In this section, unless the text otherwise requires, words in the singular number include the plural and the plural include the singular; words of the masculine gender include the feminine and the neuter; and when the sense so indicates, words in the neuter gender may refer to any gender.
(2) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
FACILITATOR. Any person or entity who provides a means through which a person may book a hotel room and/or transient occupancy rental unit to lessees, regardless of whether payment is transferred through or processed by such facilitator. Facilitators are considered lessors, as used herein.
GROSS RENT. 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, booking, facilitating or servicing of reservations. GROSS RENT means both: (a) the "net rate" paid to the hotel or motel by a facilitator for room occupancy by the consumer; and (b) the amount retained by the facilitator for travel-related services provided to the consumer (sometimes referred to as a "facilitation fee"), and any additional amounts retained by the facilitator as compensation for its services to the consumer for the individual transaction, or, in the instance of a consumer's direct rental of a room with the hotel or motel, gross rent shall mean the amount charged by the hotel or motel directly to the consumer for the occupancy of the room.
HOTEL. A structure kept, used or maintained as or advertised or held out to the public to be an inn, motel, hotel, apartment, home, lodging house, dormitory or place where sleeping, rooming, office, conference or exhibition accommodations are furnished for lease or rent, whether with or without meals. For avoidance of doubt, transient occupancy rental units are hotels under this definition.
HOTEL ACCOMMODATIONS. A room or rooms in any building or structure kept, used or maintained as or advertised or held out to the public to be an inn, motel, hotel, apartment hotel, lodging house, dormitory or place where sleeping, rooming, conference or exhibition accommodations are furnished for lease or rent, whether with or without meals. The term HOTEL ACCOMMODATIONS does not include an accommodation a person occupies as his or her domicile and permanent residence.
LESSEE. Any person who pays for the privilege of occupying all or part of a hotel.
LESSOR. Any person having a sufficient proprietary interest in conducting the operation of a hotel, or receiving the consideration for the rental of all or part of such hotel, so as to entitle such person to all or a portion of the net receipts thereof, including facilitators, as defined herein.
ONLINE TRAVEL COMPANY. An organization that books, reserves, or rents hotel or motel rooms and makes other travel arrangements for consumers via the World Wide Web, internet or other digital means. Online travel companies are considered facilitators, as used herein.
PERMANENT RESIDENT. Any person who has occupied or has the right to occupy all or part of a Hotel for more than 30 consecutive days.
PERSON. Any natural person, receiver, administrator, executor, conservator, assignee, trust in perpetuity, trust, estate, firm, co-partnership, joint venture, club, company, business trust, domestic or foreign corporation, association, syndicate, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, whenever the term PERSON is used in any clause prescribing and imposing a penalty, the term as applied to associations shall mean the owners or part-owners thereof, and as applied to corporations, the offices thereof, or any other entity recognized by law as the subject of rights and duties.
TRANSIENT OCCUPANCY RENTAL UNIT. A dwelling unit or a habitable unit that is offered, in whole or in part, for rent, lease or hire that is rented, leased or hired for which a lessor receives consideration from a person for a period of 30 days or less and that person has the right to use, occupy or possess all or part of the dwelling unit or habitable unit for said period.
TREASURER. The Treasurer of the village.
VILLAGE. The Village of Crestwood, Cook County, Illinois.
(C) Hotel use tax imposed.
(1) There is levied and imposed a tax of 5% of the gross rent charged for the privilege and use of renting a hotel room within the village for each 24-hour period or any portion thereof for which a room charge is made.
(2) Accommodations within said buildings or structures which are leased to the same occupant for a period of more than 30 consecutive days shall be exempt from the tax provisions of this chapter.
(3) Lessors renting or leasing hotel rooms within the village are required to collect the hotel use tax; however, the ultimate incidence of any liability for payment of the tax is to be borne by the lessee.
(4) The hotel use tax shall be paid in addition to any and all other taxes and charges.
(5) It shall be the duty of every lessor of every hotel within the village to separately state such tax at the 5% rate upon the total amount of compensation charged for the use of the hotel. The lessor shall also state separately the amount of tax on the invoice for the transaction that will be tendered to the lessee.
(6) It shall be the duty of every lessor of every hotel within the village to collect the tax from the lessee at the time the lessee pays for the privilege of occupying all or part of a hotel transient occupancy rental unit, and to remit to the village the tax under procedures provided for in this chapter or otherwise prescribed by the village. If more than one person is the lessor as related to a particular transaction, the lessors are jointly and severally responsible for collecting and remitting the tax.
(7) It shall not be a defense to this chapter that the lessor is not licensed by the village to rent hotels and the lessor will still be required to remit the proper tax to the village.
(8) All funds collected by the village under this tax shall be expended solely to promote tourism and conventions within the village or otherwise to attract nonresident overnight visitors to the municipality. No funds received under this tax shall be used to advertise for or otherwise promote new competition in the hotel business within the village.
(D) Tax borne by lessee. The ultimate incidence of and liability for payment of the tax shall be borne by the hotel owner, manager or operator of the hotel accommodations. The tax herein levied shall be in addition to any and all other taxes. The hotel owner, manager or operator may reimburse themselves for their tax liability for the tax by charging the lessee or tenant of the hotel accommodations, by separately stating the tax as an additional charge on the lessee’s or tenant’s statement of charges. It shall be the duty of every owner, manager or operator of hotel accommodations to secure the tax from the lessee or tenant of the hotel accommodations, and pay over to the Treasurer the tax under rules and regulations prescribed by the Treasurer and as otherwise provided by this section.
(E) Collection of tax. The tax herein levied shall be secured by the hotel owner, manager or operator from the lessee or tenant when collecting the price, charge or rent to which it applies. Every lessee or tenant shall be given a bill, invoice, receipt or other statement or memorandum of the price, charge or rent payable upon which the hotel accommodations tax shall be stated, charged and shown separately. The hotel accommodations tax shall be paid to the Treasurer, or the authorized representative of his or her office, on a monthly basis. The tax shall be due on or before the fifteenth day of the succeeding month.
(F) Transmittal of tax revenue.
(1) The lessor of each hotel within the village shall file returns and remit collected taxes, to the Village Finance Department showing tax receipts received with respect to each hotel during each monthly period commencing on (date), and continuing on the first day of every month thereafter on forms prescribed by the village. The return shall be due on or before the last day of the each month succeeding the end of the monthly filing period. Each lessor shall file an application with the village for a village taxpayer identification number prior to filing its first tax return.
(2) The first taxing period for the purpose of this chapter shall commence on September 1, 2020 and the tax return and payment for such period shall be due on or before the monthly remittance deadline. Thereafter, reporting periods and tax payments shall be in accordance with the provisions of this chapter. At the time of filing such tax returns, the owner shall pay to the village all taxes due for the period to which the tax return applies.
(G) Late payment and penalties.
(1) Any notice, payment, remittance or other filing required to be made to the village for the tax imposed by this chapter shall be considered late unless it is: (a) received by the village on or before the due date imposed by this chapter; or (b) received via a method consistent with the current established standards of filing and payment determined by the village.
(2) In the event a determination has been made that a tax is due and owing, through audit, assessment or other bill sent, the tax must be paid within the time frame otherwise indicated.
(3) Interest. The village hereby provides for the amount of interest to be assessed on a late payment, underpayment or non-payment of the tax, to be 2% per annum, based on a year of 365 days and the number of days elapsed.
(4) Late filing and payment penalties.
(a) If a tax return is not filed within the time and manner provided by the controlling tax ordinance, a late filing penalty of 2% of the amount of tax required to be shown as due on a return shall be imposed; and a late payment penalty of 2% of the tax due shall be imposed.
(b) If no return is filed within the time or manner provided by the controlling tax ordinance and prior to the village issuing a notice of tax delinquency or notice of tax liability, then a failure to file penalty shall be assessed equal to 2% of the total tax due for the applicable reporting period for which the return was required to be filed.
(c) A late filing or payment penalty shall not apply if a failure to file penalty is imposed by the controlling ordinance.
(H) Suspension or revocation of license. If the Mayor, after a hearing held by or for him or her, shall find that any person has willfully avoided payment of the tax imposed by this section, he or she may suspend or revoke all village licenses held by the tax evader. The owner, manager or operator of the hotel accommodations shall have an opportunity to be heard. The hearing shall not be held less than five days after notice of the time and place of the hearing, addressed to the owner, manager or operator at his or her last known place of business. The suspension or revocation of any license shall not release or discharge the owner, manager or operator of hotel accommodations from his civil liability for the payment of the tax, nor for prosecution of the offense.
(I) Proceeds. All proceeds resulting from the imposition of the tax under this section, including penalties, shall be distributed within 30 days after collection as follows.
(1) Ninety five percent of 1% of the gross tax revenue collected shall be paid to the Southland Convention and Visitors Bureau, Chicago, for the sole purpose of promoting tourism and conventions.
(2) The excess over 95% of 1% of the gross tax revenue collected shall be retained by the village.
(3) In the event the village increases the tax collected pursuant to division (C) above, Southland Convention and Visitors Bureau, Chicago, shall only be entitled to 95% of 1% of the gross tax revenue collected.
(J) Severability. If any provision, clause, sentence, paragraph or part of this section, or application thereof to any person, firm, corporation, public agency or circumstance, shall for any reason, be adjudged by a court of competent jurisdiction to be unconstitutional or invalid, the judgment shall not affect, impair or invalidate the remainder of this section and the application of the provision to other persons, firms, corporations, public agencies or circumstances, but shall be confined in its operation to the provision, clause, sentence, paragraph or part thereof directly involved in the controversy in which the judgment shall have been rendered and to the person, firm, corporation, public agency or circumstances involved. It is hereby declared to be the legislative intent of the Village Board of Trustees that this section would have been adopted had an unconstitutional or invalid provision, clause, sentence, paragraph or part thereof not been included.
(K) Time of effect. This section shall be in full force and effect as of July 1, 2014.
(L) Other actions authorized. The officers, employees and/or agents of the village shall take all action necessary or reasonably required to carry out, give effect to and consummate the amendments contemplated by this chapter and shall take all action necessary in conformity therewith. The officers, employees and/or agents of the village are specifically authorized and directed to draft and disseminate any and all necessary forms to be utilized in connection with these amendments. Any and all actions previously performed by officials, employees and/or agents of the village in connection with carrying out and consummating the intent of this chapter are hereby authorized, approved and ratified by this reference.
(Prior Code, § 3-2-3) (Ord. 1338, passed 7-1-1993; Ord. 2144, passed 2-6-2014; Ord. 2530, passed 11-7-2019; Ord. 2561, passed 7-16-2020) Penalty, see §
111.99