The Aurora City Council has been among those leading an effort to stop cities from taxing state-government fees, including statewide fees on plastic bags and retail delivery orders.
In Aurora, the ordinance is more broad and would apply to all government fees, current and future, and would exempt them from municipal sales and use taxes. Exempting the delivery fee and a waste tire fee from these taxes would cost the city about $220,000 per year, according to Aurora city staff. Staff didn’t calculate the tax revenue loss from the plastic bag fee because that hasn’t been implemented yet.
Zvonek said the fees and taxes may seem small, but they “ultimately pile up to the point to where you’re talking real dollars and cents and you’re making things less affordable.” “We want to do what we can to attract business and attract people to want to shop here,” he said. “And retail is so critical for a city that relies on sales tax revenue — 65% of our city revenue is sales tax — and so I think that continuing to pile these little costs on, whether it’s goods and services, ultimately makes us less competitive.”
The City Council approved the move unanimously on first reading and is expected to pass the ordinance later this month.
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