Council member Gardner moves repeal of Aurora's 5% retail marijuana excise tax to study session

Council Member Gardner introduced a proposal to repeal Aurora's 5% retail marijuana excise tax, saying the tax — levied on cultivations' gross sales — generates about $574,000 annually but may be driving cultivations out of the city.

Trevor, a staff presenter, said a mid-year implementation in 2026 would have an estimated revenue impact of $287,000. He and Gardner said industry feedback shows cultivations view the 5% excise as a competitive disadvantage compared with nearby Denver, which does not have an excise tax.

Staff and council members discussed fiscal trade-offs. Jeff and Greg (staff) said removing roughly $500,000 in excise revenue would eliminate the marijuana fund's reserve that currently backs two recreation centers and transportation capital projects, leaving the city without that cushion. Greg said the five-year pro forma had been counting on those funds; without them, planned additions to capital funds would be lost.

Gardner said he has discussed the fiscal note and potential offsets with the city manager and the mayor pro tem; he proposed moving the repeal to a study session so staff can prepare a fiscal note and identify budget adjustments before formal consideration. The committee agreed to send the item to a study session; Gardner will coordinate timing and the fiscal analysis with staff.

No vote was taken; the committee requested a fiscal note and additional details on how to address the shortfall before the proposal returns for further consideration.