Cheltenham Borough Council is the second authority in England and Wales to introduce the fee, which will have to be paid by licensed premises operating between midnight and 6am, after it rubber-stamped proposals in December.
Newcastle City Council was the first authority to approve the measure last June and implement it on 1 November 2013.
Around 218 licensed premises in Cheltenham will be affected and the fee will depend on the rateable value of the property and range from £299 to £4,400 annually.
It will provide potential revenue of £199,000 for the council and police to fund initiatives that tackle alcohol-related crime and disorder within the borough.
The pub trade in Cheltenham has previously expressed concerns that the levy will only penalise late-night premises and not supermarkets, licensed premises already pay high business rates and the additional financial burden could have an adverse effect on the town’s attractiveness as a place to live, visit and invest.
Islington Council also approved a late-night levy in February, to be implemented no earlier than 1 September 2014, while Plymouth City Council announced last week that it has ‘postponed’ plans to introduce the fee.