Occupational Privilege Tax Repeal - Reminder

The city of Aurora Occupational Privilege Tax will be repealed effective Jan. 1, 2025. Businesses are required to continue to collect the tax until the repeal effective date of Jan. 1, 2025. The December 2024 and 4th quarter 2024 returns will be the last returns filed and are due Jan. 31, 2025. The city will continue to accept amended returns, returns for any periods prior to January 2025 and refund claims. A copy of the signed ordinance can be found here, Ordinance 2022-77.

Occupational Privilege Tax (OPT) General Information

The city of Aurora imposes an Occupational Privilege Tax (OPT) on individuals who work within the city limits.

Employees and Employers are subject to OPT of $2 per month if:

• Gross earnings are $250 or more per calendar month

• Employee works within the city of Aurora for any period of time during such month

An “employee” is any person who is subject to federal income tax withholding pursuant to the provision of the Federal Internal Revenue Code of 1986.

OPT Rate

Employers are required to match the Employee OPT of $2.00 per month, remitting to the city a total of $4 per month per employee.

• Employee: $2 per month (withheld from paycheck monthly).

• Employer Match: $2 per month for each taxable employee.

Note: Religious, charitable and eleemosynary organizations are exempt from paying the Employer Match portion of OPT tax. However, the employer is still required to withhold and remit the employee portion for employees of such organizations.

When to File

Occupational Privilege Tax returns are due on the last day of the month following the taxable period. For example, if your business is required to remit OPT monthly, the tax return and payment are due on the last day of the month following the previous month (the taxable period).

OPT returns must be filed monthly if more than 25 employees and quarterly if less than 25 employees.

Employees Who Work in More than One City

When an employee otherwise subject to the Employee Occupational Privilege Tax performs services for a single employer within the City of Aurora and one or more other cities which levy an Employee Occupational Privilege Tax, both the Employee and Employer Occupational Privilege Tax shall be payable to the city in which the most hours were worked.

Employees with More Than One Aurora Employer

Employees with more than one Aurora employer should provide their secondary employer with a Withholding Certificate/AOPT Form to avoid duplicate withholding for the same month. All employers are still liable for the employer portion of OPT on the same employee.

Please view the Aurora Tax Code, Section 130-404 and 130-464 for more information.

Links:

• Withholding Certificate/AOPT Form