For example, if the City were to consider a 1% sales tax increase, from 2.5% to 3.5%, that would generate approximately $23 million annually — enough to fund the City's most critical infrastructure needs.
It avoids a property tax increase and spreads the cost among residents, visitors, and commuters who use Centennial's roads every day.
It protects the General Fund — preserving funding for neighborhood services, traffic enforcement, and other services residents count on.
At 3.5%, Centennial’s sales tax rate would be lower than the Front Range average 3.63%, without taxing essential goods like groceries or utilities.
Centennial has increased its sales tax rate only one time in its 25-year history.
To inform future policy decisions, the City hired a consultant in 2020 to build a comprehensive long-range financial model. One significant finding was that expenditures were expected to outpace revenue.
Secured $33.3 million in COVID-era grant and stimulus funding to help deliver Transportation Master Plan projects that would have otherwise relied on City dollars.
Purchased streetlights from Xcel Energy to control reduce long-term costs and manage maintenance and LED conversation, leading to an 80% reduction in costs.
For years, Centennial leadership has been taking steps to ensure responsible spending and financial sustainability. And these strategic conversations and actions continue. Here are a few recent examples of cost-cutting and efficiency measures.
Would groceries or utilities be taxed?
No. Essential goods like groceries and utilities would not be taxed under the option being discussed.
How does Centennial's sales tax compare to nearby cities?
Centennial has one of the lowest sales tax rates on the Front Range. At a hypothetical 3.5%, the rate would still be below the Front Range average of 3.63%.
When was the last time Centennial increased its sales tax rate?
Centennial has not increased its sales tax rate since 2003.
