A divided Denver City Council on Monday approved a measure that will ask Denver voters in November to hike the city’s sales tax by 0.5 points to generate $100 million, which Mayor Mike Johnston wants to spend on “affordable” housing. 

The council adopted several amendments, including a 40-year sunset provision.

If approved by voters, Denver’s sales tax would be 9.31%, and if another sales tax measure to fund Denver Health — the city’s hospital system — also sails through, the sales tax would increase by another 0.34 points.

A sales tax of 9.65% would be the highest in the metro area, rivaling only Colorado’s mountain and resort towns. 

Despite arguments raised by Councilmembers Kevin Flynn and Flor Alvidrez, among others, the council voted, 9-4, to let voters decide. 

Councilmember Stacie Gilmore, who has been a vocal opponent of the measure, remained opposed. 

“The majority of sales tax increases, if not all, were prior to 2020. It’s a very different landscape for residents in Montpellier and Green Valley Ranch,” Gilmore said. “People are stretched to the max. This council have given this administration carte blanche since July 17 of last year, and I cannot in good faith give carte blanche to 40 years of sales taxes.”

Denver’s ballot is becoming increasingly dense, with the two aforementioned sales tax rate increases, a proposed slaughterhouse ban and a proposed fur ban.

Denver voters will consider nine questions on November’s ballot, making it one of the longest municipal ballots in recent memory at four to five pages.

Councilmember Sarah Parady argued in favor of putting the sales tax measure on the ballot.

“Even if you look at sales tax alone, we don’t compete with a lot of other metros. There are many American cities that have higher overall sales tax rates,” she said. “So, ultimately, the people who sent us here are the people that we are asking to decide whether they approve this sales tax in return for what they have told us is the single biggest crisis in our city. I trust the voters to do that balancing for themselves.”

Parady added: “There are many American cities — Tacoma, Birmingham, New Orleans, Nashville and dozens of comparable cities — that have higher overall sales tax rates.”

Nashville’s sales tax rate, for example, sits at 9.25%. But unlike Denver, Nashville does not impose an income tax on its residents.

Councilmember Shontel Lewis attempted to cast doubt on the fact that 9.65% would make Denver’s the highest in the metro area by comparing current sales tax rates across metro area cities. 

“We’ve heard pretty extensively that Denver already has the highest city-only tax rate in the metro area,” she said. “I wanted to clarify that it’s actually lower than combined comprehensive rates in comparison to other cities, like Commerce City, Boulder, Lafayette and Louisville.”

Those cities do have higher sales tax rates than Denver right now: Boulder’s is 9.05%, Commerce City’s is 9.25%, Lafayette’s is 9.06% and Louisville’s is 8.96%, compared to Denver’s current 8.81%.

At 9.65%, Denver would shoot ahead of those towns and be in the same conversation as Georgetown (10.05%) and Winter Park (11.2%). 

Two of the four towns mentioned by Lewis have a higher annual median household income than Denver’s $86,000. Louisville’s is $136,000 and Lafayette’s is $105,000. Boulder’s is comparable to Denver, at $82,000, while Commerce City is the lowest at $61,000.

Councilmember Paul Kashmann spoke in support of the ballot measure, touting its focus on homebuyers, renters and those trying to stay in the housing situation they have. Specifically, he said, many factors raised by the current administration and the consensus of residents have been taken into consideration.

Previously, councilmembers criticized the perceived rushed nature of the measure and said not enough community input had been considered. Kashmann disagreed. 

”One of the main things I believe in is community input, and I’ve been listening to my community for the past nine years talk about the fact that it’s too damn expensive to live in Denver, and the No. 1 thing I hear about is housing, over and over and over again,” he said. “(We have) a bill that, as I read it, has sufficient guardrails to ensure that we’re going to address a variety of affordable housing needs.”