LaSalle County Tourism Committee members discussed a state bill at their May committee meeting that staff said would tighten who can draw from the Illinois state hotel/motel tax fund.
Bob, a Heritage Corridor representative, told the committee that visitors to LaSalle County spent about $324,000,000 in 2023 and supported roughly 2,300 local jobs. “Visitors are generating $20.9 million in state taxes and $9.8 million in local taxes,” Bob said, citing the most recent statistics he had available.
The nut graf: the bill under consideration would narrow which entities can access revenue from the state hotel/motel tax so less of the fund is diverted to non‑tourism uses, supporters said. That matters because the county’s tourism promotion and grant programs draw on those state hotel tax receipts.
In discussion, Bob said the draft language would prevent several non‑tourism or indirectly related programs from drawing on the fund. “There’s so many people that are getting their hands in the state hotel tax,” he said, and listed examples committee members had heard: Build Illinois, Chicago sports renovations, state fairs, film offices and wine/brewers guilds.
Committee members asked how the tax is collected and who benefits. Bob explained that hotel guests pay a local lodging tax and a state hotel tax; the statewide state hotel tax rate cited during the meeting was 6.5%. County participants also discussed the county lodging tax (discussed in the meeting as 5% by one participant) and expressed some uncertainty about whether the county was at the local maximum; Bob said he would verify those details and follow up by email.
Committee direction: Bob said he planned to contact legislators immediately and over the next two weeks because the meeting was near the end of the legislative session. No formal motion or vote on a committee position was recorded at the meeting.
Background: committee members framed the issue as part of broader work to keep hotel rooms—and the local businesses they support—filled through group business, sports and leisure tourism. The committee did not adopt a formal resolution at this meeting.