Bill
HB 2700
Lowering the minimum share of municipal hotel tax revenue spent on tourism from 75% to 50% in DuPage County, increasing local flexibility for other priorities.
Status: Introduced 2025; Passed legislature 2025; Transmitted to Governor 2025; Vetoed by Governor 2025-05-13 (per provided actions).
Related/Companion: SB 2303.
Statutory references amended: 65 ILCS 5/8-3-14b and 65 ILCS 5/8-3-14c.
Effective date: Upon becoming law. Sections scheduled for repeal on January 1, 2027 (per existing statutory language).
Purpose
- To change how municipalities in DuPage County must allocate revenue raised from municipal hotel taxes so that a smaller minimum share is required to be spent on tourism promotion and conventions, giving municipalities greater flexibility to use revenues for other local priorities.
Key provisions
- Lowers the required minimum share of municipal hotel-related tax revenues that must be used to promote tourism and conventions within the municipality from 75% to not less than 50%.
- Applies to amounts collected under:
- The municipal hotel operators' occupation tax (65 ILCS 5/8-3-14b), and
- The municipal hotel use tax (65 ILCS 5/8-3-14c).
- Continues to allow the remaining portion of collected funds to be expended for economic development or capital infrastructure (or similar municipal purposes).
- Applies to municipalities located within DuPage County that are recognized by the Illinois Department of Commerce and Economic Opportunity as a certified local tourism and convention bureau (i.e., entities entitled to receive State tourism grant funds). (Bill text also references not-for-profit organizations headquartered and certified local tourism bureaus in drafting edits.)
- Change takes effect immediately upon enactment; the statutory sections involved have a scheduled repeal date of January 1, 2027 (as noted in current statute language).
Who would be affected
- Municipal governments in DuPage County that participate in the municipal hotel operator/use tax framework and are recognized by the State as certified local tourism/convention bureaus.
- Local tourism promotion entities, convention bureaus, and visitor marketing programs in affected municipalities could see reduced guaranteed funding (down to 50% minimum rather than 75%).
- Municipalities would gain greater discretion to allocate up to half of these hotel-tax revenues toward economic development, capital projects, or other municipal priorities.
Potential impacts and considerations
- Tourism promotion budgets in affected towns could decrease if municipalities reallocate up to 25% of what formerly had been earmarked for tourism.
- Municipalities would have more flexibility for infrastructure and economic development investments funded by hotel-tax revenues.
- Because the statutory language is tied to a repeal date (1/1/2027), the change is effectively temporary unless further extended or made permanent by future legislation.
- Fiscal effects will vary by municipality depending on current hotel-tax revenue levels and local budgetary choices; local tourism organizations may need to seek alternative funding or demonstrate value to retain a larger share of funds.
Legislative history (selected, per provided record)
- Introduced in early February 2025.
- Passed legislative action on 2025-05-06 and transmitted to Governor.
- Vetoed by the Governor on 2025-05-13 (per provided actions).
Compiled from official sources — confirm details with the bill’s official record.
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