DENVER — Denver Mayor Mike Johnston has conceded that a ballot measure to raise the city's sales tax to pay for affordable housing will be defeated by voters.
Johnston proposed Ballot Issue 2R in July, and Denver City Council approved the measure for the ballot shortly after.
The latest results from the Denver Elections Division showed the measure trailing with 49% of the vote.
Johnston conceded the race on Saturday and issued the following statement:
“We are grateful to the council members, housing advocates and community leaders who took on the challenge of addressing our affordability crisis head on. We knew this would be a difficult struggle, but thanks to their courage, 2R fell short by the narrowest of margins, and Denverites continue to speak loudly about the need to confront rising housing costs across Denver. 2R was one path to make Denver more affordable, but it’s not the only path forward. I remain committed to finding new solutions to take on this challenge. We continue to believe that our toughest problems are solvable, and we are the ones to solve them - that will never change.”
If it had passed, 2R would have added 0.5% to the city's sales tax rate. That means everyone would pay an extra five cents for every $10 spent.
The Johnston administration said the tax increase would have brought 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.
Denver voters split their votes on raising taxes. Voters overwhelmingly approved a new sales tax that will benefit Denver Health and help the hospital pay for uncompensated care. More than 20,000 people who voted for Ballot Issue 2Q also voted against 2R.
The results are unofficial until the election is certified on Nov. 22.