(A) Definitions. For the purpose of this section, whenever any of the following words, terms or definitions are used herein, they shall have the meanings ascribed to them in this division (A).
HOTEL ROOM or MOTEL ROOM. A room offered for rental on a daily basis and containing facilities for sleeping. One room offered for rental with or without an adjoining bath shall be considered as a single HOTEL OR MOTEL ROOM. The number of HOTEL OR MOTEL ROOMS within a suite shall be computed on the basis of those rooms utilized for the purpose of sleeping.
OWNER. Any person, having an ownership interest in, conducting the operation of a hotel or motel room, or receiving the consideration for the rental of the hotel or motel room.
PERMANENT RESIDENT. Any person who occupies or has the right to occupy any room or rooms, regardless of whether or not it is the same room or rooms, in a hotel or motel for at least 30 consecutive days. The term PERMANENT RESIDENT shall also include a person who works and lives in the same hotel or motel.
PERSON. Any natural person, trustee, court representative, syndicate, association, partnership, firm, club, company, corporation, business trust, institution, agency, government corporation, municipal corporation, district or other political subdivision, contractor, supplier, vendor, vendee, operator, user or owner, or any officers, agents, employees or other representative, acting either for himself or herself or for any other person in any capacity, or any other entity recognized by law as the subject of rights and duties. The masculine, feminine, singular or plural is included in any circumstance.
(1986 Code, § 19-61)
(B) Levy of tax; exclusions.
(1) Levied. There is hereby levied and imposed a tax upon all persons or owners engaged within the city in the business of renting, leasing or letting hotel rooms or motel rooms a tax of 5% of the gross rental receipts from such renting, leasing or letting. The tax shall not be imposed or levied upon the proceeds of such renting, leasing or letting to permanent residents of that hotel.
(2) Exclusions.
(a) The owner or operator of the hotel or motel shall collect the tax from the person who seeks the privilege of occupying the hotel or motel room, the person hereinafter referred to as “renter.”
(b) The tax herein levied shall be paid in addition to any and all other taxes and charges. It shall be the duty of the owner of every hotel or motel to secure the tax from the renter of the motel or hotel room, and to pay over to the City Clerk, or any authorized representative of the city, the tax under procedures prescribed by the City Clerk, or as otherwise provided in this section.
(c) Every person required to collect the tax levied by this section shall secure the tax from the renter at the time he or she collects the rental payment for the hotel or motel room. Upon the invoice receipt or other statement or memorandum of the rent given to the renter at the time of payment, the amount due under the tax provided in this section shall be stated separately on the document.
(1986 Code, § 19-62)
(C) Books and records.
(1) The City Treasurer, or 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 section, 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 City Treasurer, or authorized representative, in the discharge of his or her duties in the enforcement of this section.
(2) It shall be the duty of every owner to keep accurate and complete books and records to which the City Treasurer, or authorized representative, shall at all times have full access, which records shall include a daily sheet showing:
(a) The number of hotel or motel rooms rented during the 24-hour period, including multiple rentals of the same hotel or motel rooms where that shall occur; and
(b) The actual hotel or motel tax receipts collected for the date in question.
(1986 Code, § 19-63)
(D) Transmittal of tax revenue.
(1) Commencing on August 1, 1988, the owner or owners of each hotel or motel within the city shall file tax returns showing tax receipts received with respect to each hotel and motel room during each month commencing on August 1, 1988. The return shall be due on or before the last day of each succeeding calendar month, and the return shall indicate for what period the return is to be filed; return for January tax receipts is due on or before the last day of February.
(2) Commencing on August 1, 1988, the tax return and payment for such period shall be due on or before September 30, 1988. Thereafter reporting periods and taxes shall be paid in accordance with the provisions of this section. At the time of filing the tax returns, the owner shall pay to the City Clerk all taxes due for the period to which the tax return applies.
(3) If for any reason any tax is not paid when due, a penalty at the rate of 1.5% per 30-day period, or portion thereof, from the date of delinquency shall be added and collected.
(1986 Code, § 19-64)
(E) Collection. Whenever any person shall fail to pay any tax as herein provided, the following shall apply:
(1) The City Attorney shall, upon the request of the City Council, bring or cause to be brought an action to enforce the payment of the tax on behalf of the city in any court of competent jurisdiction.
(2) The City Clerk may file a lien upon any real and personal property of the owner which may be found within the corporate limits of the city.
(3) The procedures for notice and enforcement of the lien shall be the same as that provided in the Retailers’ Occupation Tax Act, being ILCS Ch. 35, Act 120, § 1, as now or hereafter amended, except that the city rather than the state shall take such measures.
(4) The city shall have other authority, including the right to subpoena persons and documents, as set forth in ILCS Ch. 65, Act 5, § 8-3-15.
(5) The above remedies shall be cumulative and shall further be cumulative to any other remedy provided by law, and shall be cumulative to any penalties set forth in this code.
(1986 Code, § 19-65)
(F) Proceeds of tax and fines. All proceeds resulting from the imposition of the tax under this section, including penalties, shall be appropriated as follows.
(1) Five percent of the gross tax revenue collected each year shall be appropriated for and directed to the office of the City Treasurer to defray the costs of administering and processing the imposition, application and collection of the tax.
(2) All the rest, residue and remainder of the tax revenue collected each year shall be paid into the treasury of the city into a special fund to be used and applied for the promotion and development of tourism and conventions in the city.
(3) The Economic Development Committee shall also serve as the “City of Troy Tourism Committee.” The primary responsibility of this Tourism Committee is to convene as often as necessary and make recommendations to the City Council as to the orderly disbursements of funds collected.
(4) No funds received pursuant to this section shall be used to advertise for or otherwise promote new competition in the hotel business.
(1986 Code, § 19-66)
(G) Penalties. Any person, firm or corporation found wilfully guilty of failing to pay, collect, report and transmit the hotel or motel tax to the City Clerk in accordance with the terms of this section shall, except when otherwise specifically provided, upon conviction thereof be punished by a fine as set forth in § 36.999.
(1986 Code, § 19-67) (Ord. 1988-21, passed 7-5-1988; Ord. 1997-11, passed 4-7-1997) Penalty, see § 36.999
Statutory reference:
Levy of tax, see ILCS Ch. 65, Act 5, § 8-3-14; see also ILCS Ch. 35, Act 145, § 1
Retailers’ Occupation Tax Act, see ILCS Ch. 35, Act 120, § 1