Illinois: Chicago Finance Department Announces Tourism Improvement District Charge

The Chicago Department of Finance April 17 announced that effective May 1 a 1.5 percent transaction charge will apply to hotels within the Chicago Tourism Improvement District. The charge applies to gross short-term sleeping room rental revenue for hotels with 100 or more rooms located in designated Chicago zip codes. Hotels are liable for the charge but may pass it on to customers if separately disclosed. The charge is not subject to the city’s 4.5 percent Hotel Accommodations Tax, though it may be subject to other taxes. Monthly payments are due by the 15th of the following month, and annual ...