CITY OF URBANA LODGING TAx
Background:
Since May 9, 2000, the City of Urbana has had a 3% lodging tax for all lodgings furnished by a motel/hotel and/or lodgings furnished to transient guests, and this 3% lodging tax had been historically collected by the Champaign County Auditor’s Office. In addition, the Champaign County Commissioners previously enacted an additional 3% lodging tax that has also been in effect for many years. This county tax has historically been collected by the Champaign County Auditor’s Office.
On July 23, 2019, Urbana City Council repealed and replaced the legislation that was originally passed in 2000 and enacted Chapter 177 of the Codified Ordinances of the City of Urbana (Transient Lodging Tax). Furthermore, as of October 1, 2019, the City of Urbana Finance Department will collect the city’s 3% lodging tax instead of the Champaign County Auditor’s Office for all Lodging Establishments being operated within the corporation limits of the City of Urbana. In addition, the 3% Champaign County lodging tax will still be collected and remitted to the Champaign County Auditor’s Office by each respective Lodging Establishment.
Purpose: Fifty percent of the revenue generated by the 3% city lodging tax is used to fund the promotion of travel and tourism within Urbana and Champaign County. The remaining fifty percent goes to the city’s General Fund and can be used to support community development, economic development, and community planning.
Registration Requirements:
Per Chapter 117.02 (b) of the Codified Ordinances of the City of Urbana, a Lodging Establishment is defined as “every establishment kept, used, maintained, advertised or held out to the public to be a place where sleeping accommodations are offered for consideration to guests, in which one or more rooms are used for the accommodation of such guests, whether such rooms are used for accommodation of such guests, whether such rooms are in one or several structures. This includes but is not limited to hotels, motels, bed & breakfasts, cabins, condominiums, vacation homes, rooms in residences being rented to guests for sleeping accommodations, owner-occupied residences, accessory dwelling units, and non-owner occupied residences”. Furthermore, per Chapter 117.02 (g) of the Codified Ordinances of the City of Urbana, a transient guest is defined as a “person occupying a room or rooms for sleeping accommodations for less than thirty consecutive days”. As a result, this ordinance applies to hotels, motels, bed & breakfasts, accommodations rented via third party websites such as Airbnb, VRBO, HomeAway, and sleeping rooms being rented for less than thirty consecutive days.
In addition, on or before September 5, 2019, all existing operators of lodging establishments operating within the City of Urbana shall register said establishment with the Zoning Officer/Inspector and obtain a “Transient Occupancy Registration Certificate” that shall be posted in a conspicuous place on the premises. Furthermore, all new operators of lodging establishments that commence business within the City of Urbana after September 5, 2019 shall within thirty days after commencing business register said establishment with the Zoning Officer/Inspector and obtain a “Transient Occupancy Registration Certificate” In order to obtain a certificate, lodging establishment operators shall complete and return a completed Transient Occupancy Registration Form to the City of Urbana, Department of Zoning and Compliance.
All questions regarding the Transient Occupancy Registration Process should be directed to Mr. Preston Carter, Zoning Official; Department of Zoning & Compliance; 205 South Main Street, Urbana, OH 43078. He can also be reached by calling (937) 652-4322 or by email: [email protected].
Required Collection and Remission of Lodging Tax by Operators of Lodging Establishments
As of October 1, 2019, all operators of lodging establishments operating with the City of Urbana shall collect and remit the 3% city lodging tax through the City of Urbana. The transient guest shall pay the tax to the operator of the lodging establishment at the time that the rent is paid. If any operator fails to collect the tax, such operator shall be personally liable for the amount of the tax applicable to each transaction. Furthermore, the ordinance requires that “the tax to be collected shall be stated and charged separately from the rent and shown separately on any record thereof, at the time when the occupancy is arranged or contracted for, and upon every evidence of occupancy or any bill or statement of charge made for said occupancy issued or delivered by the operator, and the tax shall be paid by the occupant to the operator as trustee for and on account of the City, and the operator shall be liable to the City for the collection thereof and for the tax”.
For the monthly period beginning October 1, 2019, a monthly Transient Lodging Tax Return shall be submitted to the City of Urbana, Finance Department on or before the fifteenth day of the month for the lodging tax collected for transient occupancies during the preceding calendar month. For example, for lodging tax collected during the month of October 2019, the Transient Lodging Tax Return will be due to the City of Urbana by November 15, 2019. A copy of the Transient Lodging Tax Return is enclosed with this letter. All taxes collected by operators shall be held in trust for the account of the City until payment thereof is made to the City of Urbana, Department of Finance. Furthermore, any operator who fails to remit any tax imposed/collected shall pay a penalty of ten percent (10%) of the amount of the tax, in addition to the tax. Furthermore, any delinquency shall be subject to an additional interest penalty of one percent (1%) per month.
Applicable Exemptions
Upon receipt and approval of the completed Transient Lodging Tax Certificate of Exemption and approval of this certificate by the Director of Finance, exemption from the city’s lodging tax may be granted for the following rents being charged by the operator of the Lodging Establishment:
Frequently Asked Questions
This list of frequently asked questions and answers will help to answer any additional questions.
Lodging Tax Forms
Transient Occupancy Registration Form
Transient Lodging Tax Return
Transient Lodging Tax Certificate of Exemption
If you any questions that have not been addressed, please call (937) 652-4310 or email your questions to [email protected].
City of Urbana Finance Department
Physical Location: 225 South Main Street (former 5/3 Bank building)
Mailing Address: 205 South Main Street/PO Box 747, Urbana, OH 43078
Hours: 8:00am-4:30pm, Monday through Friday
Phone: (937) 652-4310
Email: [email protected]
Since May 9, 2000, the City of Urbana has had a 3% lodging tax for all lodgings furnished by a motel/hotel and/or lodgings furnished to transient guests, and this 3% lodging tax had been historically collected by the Champaign County Auditor’s Office. In addition, the Champaign County Commissioners previously enacted an additional 3% lodging tax that has also been in effect for many years. This county tax has historically been collected by the Champaign County Auditor’s Office.
On July 23, 2019, Urbana City Council repealed and replaced the legislation that was originally passed in 2000 and enacted Chapter 177 of the Codified Ordinances of the City of Urbana (Transient Lodging Tax). Furthermore, as of October 1, 2019, the City of Urbana Finance Department will collect the city’s 3% lodging tax instead of the Champaign County Auditor’s Office for all Lodging Establishments being operated within the corporation limits of the City of Urbana. In addition, the 3% Champaign County lodging tax will still be collected and remitted to the Champaign County Auditor’s Office by each respective Lodging Establishment.
Purpose: Fifty percent of the revenue generated by the 3% city lodging tax is used to fund the promotion of travel and tourism within Urbana and Champaign County. The remaining fifty percent goes to the city’s General Fund and can be used to support community development, economic development, and community planning.
Registration Requirements:
Per Chapter 117.02 (b) of the Codified Ordinances of the City of Urbana, a Lodging Establishment is defined as “every establishment kept, used, maintained, advertised or held out to the public to be a place where sleeping accommodations are offered for consideration to guests, in which one or more rooms are used for the accommodation of such guests, whether such rooms are used for accommodation of such guests, whether such rooms are in one or several structures. This includes but is not limited to hotels, motels, bed & breakfasts, cabins, condominiums, vacation homes, rooms in residences being rented to guests for sleeping accommodations, owner-occupied residences, accessory dwelling units, and non-owner occupied residences”. Furthermore, per Chapter 117.02 (g) of the Codified Ordinances of the City of Urbana, a transient guest is defined as a “person occupying a room or rooms for sleeping accommodations for less than thirty consecutive days”. As a result, this ordinance applies to hotels, motels, bed & breakfasts, accommodations rented via third party websites such as Airbnb, VRBO, HomeAway, and sleeping rooms being rented for less than thirty consecutive days.
In addition, on or before September 5, 2019, all existing operators of lodging establishments operating within the City of Urbana shall register said establishment with the Zoning Officer/Inspector and obtain a “Transient Occupancy Registration Certificate” that shall be posted in a conspicuous place on the premises. Furthermore, all new operators of lodging establishments that commence business within the City of Urbana after September 5, 2019 shall within thirty days after commencing business register said establishment with the Zoning Officer/Inspector and obtain a “Transient Occupancy Registration Certificate” In order to obtain a certificate, lodging establishment operators shall complete and return a completed Transient Occupancy Registration Form to the City of Urbana, Department of Zoning and Compliance.
All questions regarding the Transient Occupancy Registration Process should be directed to Mr. Preston Carter, Zoning Official; Department of Zoning & Compliance; 205 South Main Street, Urbana, OH 43078. He can also be reached by calling (937) 652-4322 or by email: [email protected].
Required Collection and Remission of Lodging Tax by Operators of Lodging Establishments
As of October 1, 2019, all operators of lodging establishments operating with the City of Urbana shall collect and remit the 3% city lodging tax through the City of Urbana. The transient guest shall pay the tax to the operator of the lodging establishment at the time that the rent is paid. If any operator fails to collect the tax, such operator shall be personally liable for the amount of the tax applicable to each transaction. Furthermore, the ordinance requires that “the tax to be collected shall be stated and charged separately from the rent and shown separately on any record thereof, at the time when the occupancy is arranged or contracted for, and upon every evidence of occupancy or any bill or statement of charge made for said occupancy issued or delivered by the operator, and the tax shall be paid by the occupant to the operator as trustee for and on account of the City, and the operator shall be liable to the City for the collection thereof and for the tax”.
For the monthly period beginning October 1, 2019, a monthly Transient Lodging Tax Return shall be submitted to the City of Urbana, Finance Department on or before the fifteenth day of the month for the lodging tax collected for transient occupancies during the preceding calendar month. For example, for lodging tax collected during the month of October 2019, the Transient Lodging Tax Return will be due to the City of Urbana by November 15, 2019. A copy of the Transient Lodging Tax Return is enclosed with this letter. All taxes collected by operators shall be held in trust for the account of the City until payment thereof is made to the City of Urbana, Department of Finance. Furthermore, any operator who fails to remit any tax imposed/collected shall pay a penalty of ten percent (10%) of the amount of the tax, in addition to the tax. Furthermore, any delinquency shall be subject to an additional interest penalty of one percent (1%) per month.
Applicable Exemptions
Upon receipt and approval of the completed Transient Lodging Tax Certificate of Exemption and approval of this certificate by the Director of Finance, exemption from the city’s lodging tax may be granted for the following rents being charged by the operator of the Lodging Establishment:
- The rent is paid by the Federal Government (exemption form required; attach a copy of government issued ID and type of payment; bill shall be paid with government check or government credit card).
- The rent is paid by State and Local Governments and subdivisions thereof (exemption form required; attach a copy of government issued ID and type of payment; bill shall be paid with government check or government credit card).
- The rent is not subject to tax due to occupancy for a period exceeding thirty consecutive days (room contract or proof of stay of thirty or more consecutive days required).
Frequently Asked Questions
This list of frequently asked questions and answers will help to answer any additional questions.
Lodging Tax Forms
Transient Occupancy Registration Form
Transient Lodging Tax Return
Transient Lodging Tax Certificate of Exemption
If you any questions that have not been addressed, please call (937) 652-4310 or email your questions to [email protected].
City of Urbana Finance Department
Physical Location: 225 South Main Street (former 5/3 Bank building)
Mailing Address: 205 South Main Street/PO Box 747, Urbana, OH 43078
Hours: 8:00am-4:30pm, Monday through Friday
Phone: (937) 652-4310
Email: [email protected]
