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Locally Imposed Taxes

Hotel/Motel Tax (6%)

  • There is a 6% tax on gross receipts from room rentals. Current authorized deductions: rooms rented to persons as their principal place of residence (Supporting Documents must accompany return).
  • An ordinance revision granting 1% Prompt Payment Compensation and a change in the filing due date was passed May 4, 2004. You are entitled to keep 1% of the tax due for the collection and prompt payment of this tax if filing and payment is made by the due date.
  • Taxes are due the 25th of the month succeeding the filing month. Payments made after the 25th are assessed 5% penalty and 2% interest per month. The portion of the month from the 26th through the end of the month is a partial month and charged the monthly penalty and interest rate. If payment is not made until the following month, 10% penalty and 4% interest rates apply. Once a notice of delinquency is sent, the 2% interest per month plus a 25% Failure-to-File Penalty fee are assessed.

Alcoholic Beverage Tax (1% - 3%)

  • There are taxes on total gross receipts from the sale of alcoholic beverages. The rate changes took effect September 1, 2006. The new rates are as follows: 3% for package liquor stores, including grocery stores. 1% for restaurant and bars.
  • An ordinance revision granting 1% Prompt Payment Compensation and a change in the filing due date was passed May 4, 2004. You are entitled to keep 1% of the tax due for the collection and prompt payment of this tax if filing and payment is made by the due date.
  • Taxes are due the 25th of the month succeeding the filing month. Payments made after the 25th are assessed 5% penalty and 2% interest per month. The portion of the month from the 26th through the end of the month is a partial month and charged the monthly penalty and interest rate. If payment is not made until the following month, 10% penalty and 4% interest rates apply. Once a notice of delinquency is sent, the 2% interest per month plus a 25% Failure-to-File Penalty fee are assessed.

Food & Beverage Tax (1%)

  • There is a 1% tax on total gross receipts from the sale of food & beverages, including alcoholic beverages. This tax went into effect July 1, 2010. Please call 217-431-2330 with questions on exclusions.
  • There is a 1% Prompt Payment Compensation for the collection and prompt payment of this tax. You are entitled to keep 1% of the tax due if filing and payment is made by the due date.
  • Taxes are due the 25th of the month succeeding the filing month. Payments made after the 25th are assessed 5% penalty and 2% interest per month. The portion of the month from the 26th through the end of the month is a partial month and charged the monthly penalty and interest rate. If payment is not made until the following month, 10% penalty and 4% interest rates apply. Once a notice of delinquency is sent, the 2% interest per month plus a 25% Failure-to-File Penalty fee are assessed.

Motor Fuel Tax ($.056/gal gasoline, $0.27/gal diesel)

  • There is a $.056 per gallon tax on total gross gallons of gasoline and $.027 per gallong tax on diesel. Current exemptions are kerosene and aviation fuel, or mixtures used in the heating of buildings.
  • An ordinance revision granting 1% Prompt Payment Compensation and a change in the filing due date was passed May 4, 2004. You are entitled to keep 1% of the tax due for the collection and prompt payment of this tax if filing and payment is made by the due date.
  • Taxes are due the 25th of the month succeeding the filing month. Payments made after the 25th are assessed 5% penalty and 2% interest per month. The portion of the month from the 26th through the end of the month is a partial month and charged the monthly penalty and interest rate. If payment is not made until the following month, 10% penalty and 4% interest rates apply. Once a notice of delinquency is sent, the 2% interest per month plus a 25% Failure-to-File Penalty fee are assessed.

City Sales Tax (2.25%)

The City sales tax rate was increased to 2.25% effective July 1, 2010. The current breakdown of the total tax rate is as follows:

  • 5.00 State of Illinois
  • 1.00 City of Danville (Mandated by the State)
  • 2.25 City of Danville (Locally imposed, collected by the State)
  • .50 Vermilion County
  • 8.75% Total General Merchandise Tax Rate
  • 9.75% Total for Restaurants (Food & Beverage Tax included)
  • 10.75% Total for Liquor sold in restaurants (Food & Beverage and Liquor Tax included)
  • 11.75% Total for package Liquor Stores

These taxes are collected by the State of Illinois and disbursed monthly to municipalities.