Call us at 217 782-6045.
Call our TDD (telecommunications device for the deaf) at 1 800 544-5304.
Write us at Illinois Department of Revenue,
Miscellaneous Taxes Division P.O. Box 19477, Springfi eld, IL 62794-9477.
Visit our Web site at tax.illinois.gov.
Call “Illinois Tax Fax,” our fax-on-demand service, at 217 785-3400.
Call our 24-hour Forms Order Line at 1 800 356-6302.
For information
or forms
Printed by authority of the State of Illinois
(605 copies - 1/08 - P.O. number 2080460)
Because of confusion on this issue, we
have revised exemption certifi cates to
specifi cally state that the organization is
not exempt from hotel tax.
I operate a private club and rent
rooms only to club members
and their guests. Am I exempt
from paying hotel tax?
Since hotel tax is limited to the renting
of rooms to the public and your club
restricts its renting of rooms to mem-bers
and their guests, you are not liable
for hotel tax on your rental receipts from
such rooms.
Are schools that rent rooms
to students as living quarters
subject to hotel tax?
A school is not subject to hotel tax
on receipts from renting rooms to its
students for use as living quarters, or
for sleeping or housekeeping accom-modations,
because these are not
rentals to the public. If the school rents
rooms for such purposes to persons
who are not enrolled with the school in
courses of study for credit, such renting
is being made to the public. Therefore,
the school owes hotel tax on receipts
from such rentals, as long as the per-son
does not qualify as a permanent
resident.
If a guest requests a roll-away
bed, are receipts from the rental
of the bed subject to hotel tax?
Yes. Receipts from the rental of the roll-away
bed are subject to hotel tax. If you
make a separate and specifi c charge
for the use of bedding or other facilities
furnished in connection with the use of
a room as living quarters or for sleeping
or housekeeping accommodations, the
receipts from this source are subject to
hotel tax.
Are receipts from meeting or
banquet rooms subject to hotel
tax?
No. Since hotel tax is imposed on
receipts from renting rooms for living
quarters or for sleeping or housekeep-ing
accommodations, the tax does
not apply to receipts from the renting
of rooms for other purposes (e.g., for
use as display rooms, sample rooms,
meeting rooms, offi ces, or private dining
rooms).
If I operate a bed and breakfast
and do not include the
breakfast in the room rate, are
receipts from the breakfast
subject to hotel tax?
No. The receipts you receive from sell-ing
food, beverages, or other tangible
personal property are not subject to
hotel tax.
If you provide complimentary food to
your guests and do not operate a res-taurant
that is open to the public, you
must pay Illinois Use Tax on the food
items when they are purchased. If you
sell food to your guests and operate
a restaurant that is open to the pub-lic,
your receipts are subject to Illinois
Sales Tax. You must be registered sepa-rately
with us to report and pay sales
tax on these items.
Are “in-room movies” subject to
hotel tax?
Receipts for movie rentals are not sub-ject
to hotel tax if you
are not the entity that actually pro-vides
the movie,
authorize a movie vendor to install
equipment in the rooms and sell mov-ies
to your guests, and
merely collect the money for the
movie vendor.
However, if you actually provide movies
to your guests, these receipts are sub-ject
to hotel tax.
What if a person or organization
refuses to pay hotel tax?
As a hotel operator, the liability for pay-ing
hotel tax falls upon you, not your
guests. You may, however, pass hotel
taxes to which you are subject on to
your guests as separately stated items
on your guests’ bills. If you do not pay
the tax liability on Form RHM-1, you
will be assessed for the tax due, plus
penalty and interest.
Will I be penalized if I fail to
properly identify a deduction I
claim on Form RHM-1?
If you do not properly identify a deduc-tion
you claim on Form RHM-1, we will
automatically assess you for the tax
due, plus penalty and interest. If the
deduction is allowable, you must fi le an
amended Form RHM-1 identifying the
allowable deduction you are claiming. If,
after reviewing your return, we deter-mine
the deduction is allowed, we will
withdraw the assessment in full. If we
determine the deduction is not allowed,
you will owe the full assessment.
How can I correct an error I
made on my return?
If you made an error on your
Form RHM-1 (e.g., failed to claim an
allowable deduction), you must fi le an
amended return to correct the error.
(To fi le an amended return, use Form
RHM -1 and check the “amended” box.)
You must pay any additional tax due.
Penalty and interest will be due on
the additional tax if you do not fi le the
amended return and pay the additional
tax due by the due date of the original
return. If your amended return shows
that you have overpaid tax, you must
indicate this fact and request a refund
or credit.
Questions?
If you have questions or need more
information, please call or write us. Our
telephone numbers and address are
listed at the end of this publication.
PUB-106 (R-1/08) Page 3 of 3
Allowable Deductions for IDOR-Collected Hotel Taxes
