Mount Prospect, IL Hotels & Lodging: Transient Occupancy Tax (2026)

Section 8.1302 of the Village Code puts the tax on all licensees licensed under chapter 11, article XVII, for the use and privilege of renting, leasing or letting rooms in a hotel or motel in the village. The rate is not written into the section. It is set forth in appendix A, division II of the code, and the tax applies to gross rental receipts. The ultimate incidence of the liability is borne by the user, lessee or tenant of the room, and the tax sits on top of every other tax imposed by the village, the State of Illinois or any other municipal corporation or political subdivision.

Under section 8.1303 the owner or operator of each hotel or motel and the person holding the license bear jointly and severally the duty to collect the tax from each guest, and the tax is secured at the time the room charge is collected. Section 8.1304 names the village's finance director as administration and enforcement officer. A sworn hotel and motel occupancy tax return is due every month, on forms the finance director provides and on dates the finance director sets, with payment of all tax due for that month. The person filing may retain two percent (2%) of the tax due as compensation for collecting and paying it. The finance director or an agent can enter the premises to inspect books and records, and it is unlawful to hinder that inspection.

Section 8.1301 states the purpose: funding for events which benefit the entire community. Section 8.1306 requires all collections, including interest and penalties, to be paid into the village treasury and credited to the general corporate fund. Late payment or a late return triggers the interest and penalty provisions of sections 8.2009 and 8.2010 of the chapter.