If you live in Centennial, you will find the city’s 2A tax increase on your Colorado ballot. 2A proposes to raise the sales and use tax rate from 2.5% to 3.5%, a 40% increase in tax rates – an additional penny on every taxable dollar. The tax would generate an estimated $27 million in additional revenue each year. The revenue must be spent on Centennial streets.
At the cash register or online, Centennial’s combined tax rate would jump from 6.75% to 7.75%. If voters approve additional taxes, such as the Front Range Passenger Rail tax, the combined rate could exceed 8%.
A reasonable voter should ask three questions: Are the roads failing? Is the city short of money? What is the cost to you?
Centennial is one of the newer cities in the metro area, formed just over 25 years ago from parts of unincorporated Arapahoe County. Tax supporters claim that some of the city’s roads are 25 years old, implying they need major repair.
Centennial’s roads are evaluated by independent experts every three years. Every day, city trucks equipped with road sensors collect supplemental measurements as employees drive throughout the city. Our roads are rated “Very Good” on average, just below “Excellent” on a seven-point classification system ranging from “Excellent” to “Very Poor”.
Unlike other places in the state, Centennial’s roads are in good shape.
The city has performed well over the years. Centennial has ended each of the past ten years with a multimillion-dollar surplus: nearly $35 million in 2025, more than $35 million in 2024, and close to $38 million in 2023. Even in 2020, when stores were closed, the surplus was still in the millions.
Centennial began 2026 with more than $170 million in the bank. That’s not bad for a modest-sized suburban city, and it was before collecting a single penny in sales or property taxes. Some of the money was earmarked for existing projects, but $46 million was uncommitted and available for roads or other city plans.
Projected year-end revenues are nearly $92 million, $4 million above budget estimates. It looks like another banner year.
Centennial allocates funds annually to its street fund to cover snow removal, maintenance and other road projects. Supporters claim that without this tax increase, Centennial’s street fund “will fall short by 2028.”
The proposed 2028 street fund budget (available on the city website) shows a 2028 beginning balance of over $57 million, with nearly $15 million from dedicated funding and $15 million transferred from the general fund, expenditures of just over $45 million, and an ending balance of $42 million. All without the 2A tax increase.
The bottom line? Centennial isn’t falling short.
Not only is the money unnecessary, but 2A revenue would be locked solely to streets. In 2020, the city postponed street projects and redirected funds to keep essential services running. No employees were laid off. In another pandemic or major emergency, restricted funds could lead to job cuts or cuts to essential services.
Sales taxes gets the spotlight, but 2A also increases the use tax, which applies to construction materials used to build a new house or apartment complex, remodel your basement or kitchen, repair hail damage to your roof, or undertake any other construction project. 2A increases the use tax rate by 40%. Does anyone think adding to housing costs is the right move?
How do you estimate the additional cost of this increase for your family? You will pay more at the register or online if 2A passes. Spread across roughly 108,000 residents, $27 million is about $250 per person annually. A family that spends heavily in Centennial could pay up to $1,000. Visitors and commuters will pay part of the tab when they shop in Centennial, but residents will bear the brunt of the tax increase.
Centennial isn’t about to run out of money. In fact, it appears headed for another year-end surplus. Our streets are in very good condition, and we have the funds to keep them that way. Meanwhile, the 40% sales tax increase will hurt struggling low- and fixed-income residents. Those living paycheck to paycheck will feel the pinch. 2A will cost every Centennial resident more each year.
Of all the questions on your lengthy November ballot, this one is the easiest to answer. Vote no on 2A.
Don Sheehan represents District 4 on the Centennial City Council.

