Urbana Taxes

Description: Here are some answers to some common questions about taxes in Urbana:

Does the City impose a Telecommunications Tax?
Yes, the City of Urbana imposes a telecommunications tax on gross charges for all telecommunications originating or receiving in the City of Urbana (see Ordinance No. 2002–08-099).

  • Effective January 1, 2003, 6% of gross charges should be remitted to the Illinois Department of Revenue on the last day of the month for the preceding calendar month.
  • Any business subject to the tax is required to complete a Telecommunications Tax Service Information form.
  • For telecommunication taxes prior to January 1, 2003, 5% of gross charges should be remitted directly to the City of Urbana.

Does the City impose a Hotel/Motel Tax?
Yes. The City of Urbana imposes a 5% tax on the use of renting a hotel or motel room for each twenty-four hour period (see Section 22–60 of the Code of Ordinances). However, the tax is not imposed on any hotel or motel room rented for more than thirty consecutive days. The tax is remitted to the City of Urbana on the 15th of each calendar month for the preceding calendar month. Any new business is required to complete a Hotel/Motel tax registration form. Once the information is received by the Accounting Office, pre-printed tax return forms will be mailed to the business. For more information, call (217) 384–2350.

Does the City of Urbana impose a Food and Beverage Tax?
Yes. There is a .5% tax on all food and beverages purchased for immediate consumption (see Ordinance No. 8485–82). The tax is remitted directly to the City of Urbana at the end of each calendar month for the proceeding calendar month. Any new businesses must fill out a Food and Beverage Registration form. Once the Registration form is received by the Accounting Office, pre-printed tax returns will be mailed. For more information, call (217) 384–2350.

Source: City of Urbana
Date Last Revisited: 4/26/07