Denver is inadvertently charging taxes on its new fees
- It's generating additional revenue for the city, but that wasn't supposed to happen, officials now say.
Why it matters: The delivery fee was intended to be exempt from local sales tax, according to the Denver Gazette.
- The taxes collected — a half-cent from the bag fee and 1 cent from deliveries — aren't much, but Denver's Department of Finance spokesperson Kiki Turner said it was unintentional.
Driving the news: An ordinance set for consideration Tuesday in a city council committee would exempt the two fees from the city's sales tax, which currently sits at 4.81%.
- The exemption is backed by the Colorado Municipal League, a nonpartisan organization that represents cities.
- Aurora City Council member Dustin Zvonek is reportedly considering a similar bill for Denver's neighboring city.
Of note: The bag fee has generated $575,000 between its implementation in July 2021 and the end of September 2021.
- Turner wasn't immediately able to provide updated data, or figures on how much sales tax revenue the bag fee had generated.
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