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Aurora staff propose raising hotel‑occupancy tax from 3% to 6% and adding $10 comped‑room fee
Summary
City finance staff presented an ordinance to raise Aurora’s hotel‑occupancy tax from 3% to 6% and to add a $10 per‑day fee for comped rooms; staff said the change would roughly double current hotel tax revenue and that the item will return on unfinished business for ordinance wording and definitions.
City finance staff told aldermen on July 15 that an ordinance to increase Aurora’s hotel‑occupancy tax from 3% to 6% and to add a $10 daily fee for comped rooms is under consideration and would be effective Jan. 1, 2026, if adopted. Chris Minnick, the city’s CFO, said the existing tax — enacted in 1987 at 3% — produces roughly $550,000–$585,000 annually, and the proposed change plus new casino hotel rooms could raise roughly $1.1 million when the casino rooms begin normal operations.
Key details from staff presentation: the city currently has about 635 hotel rooms in inventory and expects approximately 220 additional rooms from a new casino hotel. Staff estimated that doubling the tax rate to 6% and collecting on comped rooms (via the $10 daily fee applicable to each 24‑hour period or part thereof) would materially increase annual receipts. The proposed change would also clarify that the tax applies only to room charges and not to incidental charges (for example, room service), and it would preserve the current exemption for stays of more than 30 days.
Questions and administration responses: Alderman Smith flagged a drafting issue and asked that the ordinance explicitly say the $10 applies per day; staff agreed to amend the draft to make that clear. Alderman Bade asked whether the $10 would apply only to the casino or to any hotel operator that comped rooms; Minnick said the $10 would apply to any comped room and that hotels are required under the ordinance to retain books and records that support taxable room nights. The proposed ordinance is listed as 25‑0552 and was moved to unfinished business for revision and defining statutory terms before a final vote.
Where the money goes: Minnick said about $225,000 of current hotel‑tax receipts are used for the Aurora Area Convention and Visitors Bureau; the remaining hotel‑tax proceeds currently inure to the general fund. The staff presentation listed improved tourism‑related revenue and that the tax is mainly paid by nonresidents using local accommodations.
Ending: staff said the rate change would be effective Jan. 1, 2026 if the ordinance is adopted, and the council asked for clearer ordinance language on daily comp fees and for the formal draft to return on unfinished business.
