WICD ABC Newschannel 15 - Champaign, Illinois :: Advertise with us!

WICD - Search Results

The following is an archived video story. The text content of that video story is available below for reference. The original video has been deleted and is no longer available.

Urbana Hotel Tax Sees Increased Growth

URBANA--The City of Urbana is seeing more than 30 percent in growth rate, through their hotel-motel tax, for the last fiscal year.

This stems from a one percent tax increase, that took effect this past October.

It was a heated debate back in 2011, when for the first time in eight years,
Urbana Mayor Laurel Prussing vetoed something.

In this case, this veto meant cutting more than $70,000 in funding for tourism.

After cutting ties with the Champaign County Visitor's Bureau, Prussing later proposed a one percent hotel-motel tax increase.

City council upheld her veto, and passed the tax increase.

Prussing adds, even without the raise, Urbana's hotel-motels saw an 18 percent increase in revenue, compared to Champaign's 9.6 percent.

With the tax increase added in, the total hotel-motel tax revenue jumped 35 percent.

She says, the proposed tax raise stemmed from the recession, when they needed to find places to cut spending.

Currently, Urbana has a six percent hotel-motel tax.

Meanwhile, Champaign has a five percent hotel-motel tax.

Reported by: Marine Glisovic
WICD ABC Newschannel 15 - Champaign, Illinois :: Advertise with us!