SPRINGFIELD, Ill. – To increase investment in local infrastructure and economic development in DuPage County, state Rep. Terra Costa Howard, D-Glen Ellyn, is sponsoring new legislation to give local governments more discretion over how to spend funds generated by the hotel tax.
“Local governments in DuPage County need the flexibility to use some of these funds to invest in local economic development efforts and help create jobs,” said Costa Howard. “This legislation will also give municipalities in DuPage the discretion to use hotel tax funds for urgently needed repairs of roads and bridges.”
Currently, funds generated from the hotel tax may be used only to promote tourism and conventions in the municipality where the hotel is located; local non-home-rule governments are prohibited from using these revenues in any other way. Under Costa Howard’s House Bill 3198, local governments in DuPage County would be able to use a portion of the tax revenue on capital infrastructure or economic development projects.
“This legislation would allow the Village of Lombard to allocate more resources towards the attraction of new developments throughout the community, including in the area around Yorktown Mall,” said Lombard Village President Keith Giagnorio. “Our local economy is heavily based on retail business, which is facing the challenge of online sales. This legislation will help us maintain our status as a regional shopping and tourism destination.”
Costa Howard’s measure recently passed out of the Illinois House Revenue and Finance Committee with strong bipartisan support.
“By giving local municipalities more discretion over how to spend the funds they currently receive, we can improve the local economy and make necessary investments in infrastructure, without raising taxes,” continued Costa Howard. “This legislation proves is an example of the creative, common sense solutions we need to pass in Springfield to help local governments and improve our communities.”