Centennial Considers 1% Sales-Tax Increase for Roads

Centennial is considering a 1-percentage-point increase in its city sales-tax rate to help fund road maintenance and long-term transportation needs. The proposal would raise the city rate from 2.5% to 3.5% and is estimated by the city to generate approximately $23 million annually.

The city says its transportation system includes 435 miles of paved public streets, 94 bridges and 92 traffic signals. Centennial’s Transportation Master Plan identifies roughly $100 million in transportation improvements, while city budget materials warn that annual expenditures are expected to exceed revenue by 2035. The city also says it may lack enough funding by 2028 to maintain current infrastructure-service levels.

Under the option described by the city, groceries and residential utilities would remain untaxed, and the proposal would not increase property taxes. Centennial’s listed combined local and state sales-tax rate is currently 6.75%.

The increase has not been adopted. City Council was expected to determine next steps in August, with a council meeting listed for Aug. 11, 2026. The city has not yet specified a final tax rate, implementation date or how any eventual revenue would be allocated.