A proposal to repeal the occupational privilege tax in Aurora, which generates about $6 million in annual revenue for the city, will take affect in two years after a bill to eliminate it gained final approval on Monday.
The Aurora City Council voted to pass the bill on final reading through a 5-5- vote, with Mayor Mike Coffman voting to break the tie. Councilmembers Ruben Medina, Juan Marcano, Alison Coombs, Angela Lawson and Crystal Murillo dissented.
Councilmember Danielle Jurinsky originally proposed repealing the tax, “which is essentially a head tax on businesses and workers in Aurora,” she said. The councilmember has called an occupational privilege tax an unfair burden that stresses small businesses disproportionately. Earlier versions of the bill would have repealed the tax starting this year, but Mayor Mike Coffman joined as a co-sponsor and the tax is now slated for repeal in 2025.
The city council can vote to delay or repeal the bill any time before it takes effect if lawmakers decide the city needs that revenue, Coffman said. The bill also prohibits making any cuts from the public safety and transportation budgets.
The tax collects $4 monthly for every employee in the city. Employers and employees split the dues, paying $2 respectively. The tax began in 1986 to support street maintenance, police and fire services.
Reinstating the tax, if it is ultimately lifted, would require a vote of the public.
Councilmembers who supported the bill said during the first vote last month that waiting two years to lift the tax will give the city time to assess its budget outlook and prepare. In past discussions, they have also called the bill a business-friendly policy.
But critics raised alarm bells about eliminating millions in revenue from the budget ahead of uncertain economic times. There are already programs and positions the city cannot fund, opposing councilmembers said, and the city anticipates budget shortfalls in coming years.
