How May Illinois Use The Money Collected From The Tourism Tax?

Illinois’ tourism sector has seen a significant economic impact in 2023, with visitor spending of $47.2 billion generating a total economic impact of $82.6 billion. This total economic impact sustained, with visitors supporting $78.1 billion in sales at businesses in the state. The Illinois Office of Tourism continues to drive the state’s recovery and position Illinois for future growth and success by stimulating the economy and boosting tax revenue. Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) launched $15.4 million in tourism funding through two initiatives.

In 2022, state and local tax revenue from visitor spending generated an impressive $4.2 billion. Revenue from the Hotel Operators’ Occupation Tax, which is 6% of 94% of gross rental receipts, funds tourism spending. The primary function of the Illinois Office of Tourism (IOT) is to create economic impact through Jobs Wealth Tax Revenue.

Illinois’ funding for tourism is 100% funded by the state’s hotel tax revenues. Receipts from permanent guests are not taxed, and proceeds shall be expended solely to promote tourism, conventions, and other local jobs. Illinois’ hotel revenue during the 2023 fiscal year exceeded the highest year on record in FY19, bringing an increase in visitor spending, tax revenue, and local jobs. Each household in Illinois would need to be taxed an additional $882 to replace the visitor-generated taxes received by state and local governments in 2021.

Despite paying for tourism, hotel taxes alone will generate $200 million of revenue for other states. McHenry County generated $15 million in local tax revenue and $336.1 million in visitor spending. Other municipalities in the state can impose taxes of up to 5 of gross rental receipts from hotel operators, and the funds must be spent to support tourism and economic growth.

What is the tax on Airbnb in Chicago?

Chicago imposes a 4. 5 Hotel Accommodations Tax, 4 Shared Housing Surcharge, and 2 Domestic Violence Surcharge on listing prices, including cleaning fees for 29-night reservations. To become an Airbnb host, it’s crucial to understand local laws. Airbnb provides links to help understand local laws and regulations in Chicago, IL. If you have additional questions, contact your government agency or consult a local lawyer or tax professional. If you only host for 32 days or more, no registration number is needed to publish your listing.

Does Illinois have 183 day rule?

To avoid tax claims from California, telecommuters should consider spending fewer than 183 days in their temporary state, such as Illinois, and setting up a domicile there to avoid California’s income tax claims. States are aggressively claiming income tax from their wandering residents, so telecommuters should be vigilant about filing claims and keeping good records of their time spent. Six states, including Connecticut, Delaware, Massachusetts, Nebraska, New York, and Pennsylvania, have “convenience rules” that allow employers to withhold income tax even if the worker doesn’t live there. This may be a surprise for workers who move to a different state only to find their company still withholding state taxes.

How much money does Chicago make from tourism?

The tourism sector in Chicago witnessed a resurgence in 2021, with an 85% surge in visitor numbers. The period in question spanned from 9 a. m. to 30 p. m. Despite remaining below pre-pandemic levels, visitor numbers reached 71 million and spending reached $12. 08 billion. The city’s attractions, cultural events, and landmarks, including Millennium Park, museums, and theaters, collectively attracted over 36 million visitors. In 2023, the city welcomed 92 million visitors.

What does Illinois spend tax money on?

In fiscal year 2023, the General Funds budget amounted to $50. 837 billion, a decrease of $2. 297 billion from the previous year. Education accounted for the largest portion of the budget, with $20. 235 billion spent, accounting for 39. 8% of total expenditures. Health and Social Services expenditures totaled $16. 835 billion, accounting for 33. 1 of total General Funds expenditures. Transfers-out of $4. 196 billion primarily supported debt service payments on bonds issued.

Public Protection and Justice expenditures were $3. 008 billion, including funding for prisons, courts, and law enforcement. Other spending included $4. 469 billion for General Government and $2. 148 billion for environmental assistance and employment and economic development.

The Illinois Office of Comptroller records show that $2. 322 billion was deposited into the State Treasury, with $2. 314 billion deposited into the State Lottery Fund. The total expenditures of $2. 263 billion included $1. 099 billion for prizes, $726 million in transfers to the Common School Fund for education, $138 million in transfers to the Capital Projects Fund, and $300 million for operational expenses of the lottery, with the largest component being $148 million for lottery game development and promotion.

Which state has the highest hotel tax?

High lodging tax rates frequently restrict the ability of local tax authorities to impose additional taxes, as evidenced by the 15-percent statewide lodging tax rate in Connecticut. In contrast, the state of Oregon has a relatively low state tax rate, yet does not impose any restrictions on local taxation. For a comprehensive overview of the lodging taxes and revenue collections for each state, please refer to Appendix A.

What is the biggest item in Illinois state spending?

The state budget for 2025 focuses on human services, preK-12 education, pensions, and healthcare. The largest categories of spending are human services ($10. 98 billion), preK-12 education ($10. 8 billion), pensions ($10. 489 billion), and health care ($9. 4 billion). The largest dollar increase in proposed 2025 spending is going to human services, with significant increases in emergency funding for migrants, services for people with developmental disabilities, and additional funding for homeless prevention programs.

The state is increasing education spending by $350 million, bringing the total funding for school districts to $8. 6 billion, an increase of $1. 8 billion since Pritzker was elected. However, the Invest in Kids tax credit scholarship program, which helped over 9, 600 low-income students choose a school better, was canceled last year, causing concerns among teachers unions. The $57 million program, funded via tax deductible donations, crowded out funding for public schools.

Where is the most expensive tourist tax in the world?

Bhutan has the world’s most expensive tourist tax at £78 per night per guest, with a cap on annual visitors to preserve the country’s culture. Spain introduced a tourist tax in 2012, which has been increased to cover growing tourism costs and maintenance costs. Barcelona has increased the charge from EUR3. 25 to EUR4 per night per guest. Amsterdam has increased its tourist tax from EUR 8 to EUR 11 for cruise ship visitors, with guests staying in the city paying 12. 5 times the accommodation price.

What are the two major sources of revenue for Illinois?

Illinois uses all major state and local taxes, with property taxes and individual income taxes being the largest sources of per capita revenue after federal transfers. The state addresses various issues such as aging, retirement, artificial intelligence, child welfare, climate change, community resilience, crime, justice, disability equity policy, economic mobility and inequality, education, families, global issues, Greater DC, health and healthcare, housing, immigration, land use, neighborhoods, cities, and metros, nonprofits and philanthropy, race and equity, sexual orientation, gender identity, and expression, small businesses, social safety net, state and local finance, taxes and budgets, wealth and financial well-being, and workforce.

The state also explores the power of objective evidence in policymaking and higher education. The state also provides resources such as stories, data tools, and podcasts to further explore these topics.

What is the tourism tax revenue of Chicago?

The total expenditure on tourism reached $16. 5 billion, with $1. 1 billion in tourism tax revenue generated. The hotel tax generated $431 million for state and local government, with partner hotels contributing $153 million in state tax revenue and $138 million via Chicago hotel tax revenue.

What is hotel tax in Illinois?

Chicago imposes various taxes and fees on hotel guests, including a 4. 5 Hotel Accommodations Tax on gross rental revenue, a 17. 39 City Tax rate on net receipts, Municipal Occupation Tax on hotel revenue, Metro Pier and Exposition Authority Tax for McCormick Place expansions and city transit, Additional Hotel Tax, Cook County Accommodation Tax, Illinois’ 6. 25 baseline Sales Tax, and some additional surcharges. Hotel guests can expect to pay between 21-24 above room rates after all taxes and fees at Chicago hotels, with corporate travelers potentially exempt from sales tax if staying for business purposes.

Are hotels tax exempt after 30 days in Illinois?

An individual who has occupied the same hotel for a period of at least 30 consecutive days may be exempt from the 11 percent tax. 9. Illinois Hotel Occupancy Tax: All taxes are waived after a period of 30 days.