DENVER — It is no secret that Denver is expensive.
This November, voters will decide whether to increase the sales tax to try and make housing more affordable.
Ballot Issue 2R was proposed in July by Democratic Mayor Mike Johnston. Denver City Council approved the ballot measure shortly after.
"The single biggest problem facing the city is housing affordability," Johnston said at a news conference announcing the ballot issue this summer.
If passed, it would add 0.5% to the city’s sales tax rate, increasing it to 9.31%. In other words, everyone would pay an extra five cents for every $10 spent. It would expire in the year 2064.
A “No” vote on Ballot Issue 2R declines to increase the sales tax for this use.
The Johnston administration said the tax increase would bring in about $100 million each year to fund affordable housing projects, offer rental assistance to low and middle-income renters and help homebuyers purchase a home.
The money would mostly be used to help people making at or below 80% of Denver’s Area Median Income. For an individual to qualify, that’s around $72,000 a year. For a family of four, that’s up to $103,000.
Supporters of the initiative have raised more than $1.3 million so far. Much of that has come in the last couple of weeks, including a $200,000 donation from Gary Community Ventures, part of a philanthropy organization Johnston used to lead.
So far, the city hasn’t reported any money raised by any group against the measure.
This is not the only sales tax increase that Denver voters will decide on this November. Denver Health is also on the ballot with a 0.34% sales tax increase to help the hospital pay for uncompensated care. If voters pass both these ballot issues, Denver’s sales tax rate would climb to 9.65%, one of the highest in the state behind Winter Park.