Occupational Privilege Tax Repeal
The Aurora City Council voted Jan. 9 to repeal the city’s Occupational Privilege Tax, effective Jan. 1, 2025, with the passage on final reading of Ordinance 2022-77. Businesses are required to continue to collect and pay the tax until the repeal’s effective date.
The Occupational Privilege Tax is $2 a month charged to most employers and employees inside Aurora city limits.
The repeal will be effective Jan. 1, 2025, unless modified by a subsequent City Council action. As we get closer to the effective date in 2025, additional information will be provided to help individuals and businesses understand the impact of the repeal and the next steps to be taken. Please visit AuroraGov.org/Tax for more information.
Government Fees Exemption
Effective Nov. 1, 2022, any government fee imposed directly on the purchaser and required to be held in trust by the imposing government body and separately stated on the invoice provided to the purchaser is exempt from City of Aurora sales and use tax. This exemption will apply to the State of Colorado $0.27 retail delivery fee, waste tire fee, and upcoming carryout bag fee. The ordinance exempting these products is available at this link.
Diaper Tax Exemption
Diapers have been exempted from sales and use tax effective July 1, 2022. Diapers are defined as an absorbent garment worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements. The ordinance exempting these products is available at this link.
Menstrual Care Products Exemption
Menstrual Care Products have been exempted from sales tax effective June 1, 2021. The products are defined as tangible personal property designed for hygiene in connection with the human menstrual cycle. The ordinance exempting these products is available at this link.
Lodger’s Tax Exemption for Residential Purposes
Lodger’s Tax exemption for residential purposes has been clarified in that it only applies to natural persons. Therefore a business is not considered an occupant of the room and cannot claim the exemption simply because the business rents the room for longer than 29 consecutive days. The exemption only applies if the same occupant stays in the room for longer than 29 consecutive days and is in fact an occupant of the room. This clarification is effective on June 1, 2021. Note that the State of Colorado has enacted the same clarification. The clarifying city ordinance can be found at this link. Lodger’s Tax information is available at this link.
Collection Requirement for Marketplace Facilitators
Effective Sept. 1, 2020 Marketplace Facilitators are required to collect sales taxes on sales facilitated for third party marketplace sellers on their website. This is effective with ordinance 2020-19.
Cigarettes Taxability Change
Cigarettes are subject to tax effective Dec. 1, 2019. The exemption from City sales and use tax is eliminated with the passage of ordinance number 2019-64. Retailers are required to collect the Aurora sales tax rate of 3.75% on cigarettes beginning Dec. 1, 2019. This sales tax will be remitted as part of your regular city of Aurora sales and use tax filing. Note that failure to collect the sales tax does not remove the retailer’s responsibility for payment.
Business Licensing and Tax Class
Aurora offers a free workshop designed to help new and existing businesses understand business licensing and taxes. This beginner level seminar is intended to explain what is necessary to start-up in Aurora, and all types of businesses are welcome. Understand the process of obtaining a business license in Aurora, taxpayer rights and responsibilities, taxes you may have to pay, and the reason that audits are conducted. Tax and Licensing staff will be available to answer questions specific to your industry or situation.
|Date:||Wednesday, April 12, 2023 from 9 to 11 a.m.|
|Location:||Webex Video Conference|
Please go to the Aurora-South Metro Small Business Development Center (SBDC) website for more details and to register.
Additional information about licensing companies doing business in the city, obtaining a liquor license, or types of special use permits required in the city can be found by browsing through Business Licensing. You will find information on the following topics:
Please view the Aurora Tax Code, Chapter 86 LICENSES, for more information.
Marijuana retail store, cultivation, manufacturing and testing establishments must go to the Marijuana Licensing web page for information.
Click on the link below to download a Quick Reference Guide related to taxes and licensing in Aurora.