DuPage towns could get more flexibility on spending hotel tax revenue

Legislation to give DuPage County municipalities without home rule the ability to spend some of their hotel tax dollars on something other than tourism was approved this week by the Illinois House.

The measure is now heading to the governor's desk.

"This bill gives towns and villages in DuPage County the flexibility they need to invest in much-needed infrastructure repairs," said state Rep. Terra Costa Howard, a Glen Ellyn Democrat.

DuPage towns without home rule currently must use all money collected from their tax on hotel and motel stays to promote tourism. As a result, towns such as Itasca, Lisle and Lombard are limited in how they can spend large amounts of revenue.

Itasca, for example, collects roughly $1.2 million a year in hotel-motel taxes. That money is used to support and promote local attractions and events that draw overnight visitors.

But Senate Bill 1217, which is sponsored by state Sens. Thomas Cullerton and Suzy Glowiak, would allow such communities to use up to 25 percent of hotel tax revenue on "economic development or capital infrastructure."

Cullerton said Wednesday he hopes the governor signs the measure into law.

"Then the non home-rule communities in DuPage will have the opportunity to utilize that 25% of hotel-motel sales tax for other purposes beyond tourism," said Cullerton, a Villa Park Democrat.

A group of state House members co-sponsored the legislation. They are Costa Howard, Diane Pappas, Kathleen Willis, Anne Stava-Murray, Karina Villa, Deb Conroy, Amy Grant and Grant Wehrli.

The DuPage Mayors and Managers Conference also supports the measure.

"Everybody in DuPage is 100 percent behind this," Cullerton said.

If approved, the change would take effect immediately, but expire on Jan. 1, 2023.

The idea for the legislation came from discussions Cullerton had about five years ago with Lombard and Itasca officials.

Lombard used to have home-rule status, but voters stripped the village of that power decades ago.

Now the village collects roughly $2 million a year in hotel-motel taxes. Roughly $800,000 is used to support the Lombard Public Facilities Corp., which owns and manages the Westin hotel in Lombard. Most of the remaining money is used to promote events.

But Lombard officials say the village is projected to have a budget deficit in 2021.

If the change is approved, Lombard would be able to use up to $500,000 of its hotel-motel tax money on economic development or capital infrastructure.

"This is a big, big accomplishment that's really going to help us out," Lombard Village President Keith Giagnorio said.