Chicago council considers ‘not a tax’ surcharge on hotels

(The Center Square) – Chicago’s city council is considering a new assessment on hotel stays that supporters say would raise about $40 million.

The Illinois Hotel & Lodging Association supports the proposal to impose a 1.5% assessment at hotels with 100 or more rooms in a new tourism improvement district.

IHLA president and CEO Michael Jacobson said he normally opposes hotel tax and fee increases.

“The TID is a self-imposed assessment on hotel stays. It’s not a tax. It’s directly entirely by the hotel industry to support tourism sales, marketing and business development,” Jacobson said.

If the full council approves the assessment, taxes and fees for Chicago hotel stays in the central part of the city would rise to nearly 19%, one of the highest rates in the country.

Jacobson told the city council finance committee Wednesday that a majority of hotel owners signed petitions supporting the initiative for an initial term of five years. He said reauthorization of the assessment would be...