Denver Mayor Proposes Sales Tax Hike For Affordable Housing Initiative

Denver, July 8, 2024 - In a move aimed at addressing the city's housing affordability crisis, Denver Mayor Mike Johnston has proposed a ballot measure to increase the city's sales tax by 0.5%. The proposal, if approved by voters, would generate approximately $100 million annually to fund affordable housing projects.

Mayor Johnston unveiled the initiative during a press conference on the steps of the City and County Building, flanked by members of the City Council and community leaders. The new tax, which would add 0.5% to the current effective 8.81% sales tax rate, is intended to double the existing pipeline of affordable housing developments in the city.

"This is a game-changer for Denver," said Mayor Johnston. "We are committed to ensuring that our city remains a place where everyone can afford to live, work, and thrive. This new funding will allow us to build or secure 44,000 additional affordable housing units over the next decade."

The proposal comes at a time when Denver is grappling with surging home prices and rents, which have made the city unaffordable for many workers. The city's current affordable housing efforts are funded through a combination of existing funding streams, but the new tax would provide a significant boost to these initiatives.

If approved, the sales tax increase would bring Denver's total sales tax rate to 9.31%. The proposal is expected to be introduced to the City Council's Safety, Housing, Education and Homelessness Committee for consideration on July 17, after city officials shore up the policy in the coming weeks.

The initiative has already garnered support from several community leaders and organizations, who see it as a crucial step in addressing the city's housing crisis. However, critics argue that the tax increase could disproportionately affect lower-income residents and small businesses.

"We understand the concerns of those who are worried about the impact of this tax increase," said Jamie Rife, the director of the city's Department of Housing Stability. "But we believe that the benefits of this initiative far outweigh the costs. This is about ensuring that Denver remains a city where everyone has the opportunity to succeed."

The proposed sales tax increase is just one of several measures being considered to address the city's housing affordability crisis. The Denver City Council is also expected to vote on a 0.34% sales tax increase to provide additional funding for Denver Health, the city's safety-net hospital.

If both measures are approved by voters, Denver's sales tax rate would rise to 9.65%, making it one of the highest in the state. However, proponents of the initiatives argue that the additional funding is necessary to address the city's pressing needs and ensure a brighter future for all Denver residents.

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Travis

contributor

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