Aurora reports $23.8M sales tax collection driven by new business activity

The Management & Finance Policy Committee Meeting held on April 4, 2025, in Aurora, Colorado, featured a significant update on the city's sales tax collections, presented by Bill Levine. The discussion revealed a mixed outlook on the city's financial health, highlighting both positive growth and potential challenges ahead.

Levine reported that sales tax collections for February 2025 reached $23.8 million, marking a $2 million increase, or 9%, compared to February 2024. This growth was attributed to two main factors. The first was a change in filing frequency, which saw a 1.6% increase in the number of taxpayers filing sales taxes in January, and a notable 12.9% increase in February among monthly payers. This shift indicates a growing base of economic activity within the city.

The second and more impactful factor was the emergence of a new taxpayer, which contributed significantly to the sales tax revenue. Levine noted that a company, which he could not name for confidentiality reasons, began business-to-business sales near Denver International Airport. After a lengthy determination process, it was confirmed that the sales activity was taxable in Aurora, resulting in a substantial check that greatly influenced the February sales tax figures. Levine emphasized that without this large contribution, the city's growth would have been a decline of 2%.

While the influx of revenue from this new company is promising, Levine cautioned that such a large check is unlikely to be a recurring event. However, if the company maintains its business activity, it could provide consistent revenue moving forward.

In summary, the meeting underscored the complexities of Aurora's sales tax landscape, balancing the excitement of new business growth with the realities of fluctuating revenue streams. The committee will need to monitor these developments closely to ensure sustainable financial health for the city.