In November, Denver voters will decide whether or not to raise the city’s sales tax, which is intended to help increase affordable housing in the city. The Denver City Council approved the measure that put the question on the ballot by a vote of 9-4 at its meeting Monday night.
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Denver Mayor Mike Johnston has urged for the tax increase. He says it is desperately needed in Denver because it would fund the construction of thousands more affordable housing units in the city.
Proponents say a 0.05% sales tax increase could raise $100 million to finance 20,000 affordable housing units over 10 years.
The median income (AMI) in Denver for a single person is $91,280. For a family of four, it is $130,400.
Council member Shontel Lewis debated with the council what percentage of that revenue should go to the council, while others said there is a difference between market-rate housing and prices that reflect median income, and that fewer and fewer people today cannot afford market-rate rent.
One Denver resident said he believes more affordable housing is needed if the money is used properly.
“I think most people have no problem paying a little more and doing their fair share to help everyone else, but I really want to see results and not just line the pockets of a few politicians,” said Blake Malone.
The voters will have the final say in November.
If approved by voters, the affordable housing tax would be the city’s eighth dedicated tax and the largest to date.
Voters also approved sales taxes for parks, college scholarships, mental health care, healthy food for children, action on climate change and ending homelessness.
Last week, former Denver Mayor Wellington Webb said In his opinion, now is not the right time to confront voters with this issue.
