Denver mayor, supporters launch campaign for $100 million sales tax hike for housing
If approved by voters, Denver's sales tax would be among the highest in Colorado
Denver Mayor Mike Johnston and supporters on Wednesday launched the campaign to ask Denver voters this November to increase the city’s sales tax and generate $100 million for housing.
“In every neighborhood in Denver, people are grappling with the fear of not making rent or covering their mortgage,” Johnston said in a news release. “Seniors worry they may have to leave the homes where they’ve built their lives. The hardworking people who keep our city thriving — from teachers and nurses to restaurant workers and firefighters — are being pushed out of the city they love.”
Referring to the ballot proposal, Johnston said Measure 2R will help “preserve our city’s diversity and ensure that housing remains affordable, attainable, and accessible for all.”
A divided City Council approved the tax hike proposal in August.
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.
Several councilmembers joined Johnston in kicking off the campaign at The Burrell affordable condo project in RiNo.
In a news release, Councilmember Darrell Watson said housing affordability is the number one priority for his district’s residents and that the tax hike would fund “affordable housing” for nurses, teachers, firefighters, restaurant workers and others.
In the same news release, Council President Amanda Sandoval said the proposal would help to halt the “displacement” — as a result of rising housing costs — of longtime residents that’s been occurring in north Denver and also citywide.
Several councilmembers had balked at the proposal when the elected body passed it in August.
“People are stretched to the max,” Councilmember Stacie Gilmore said at the time. “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.”