(The Center Square) – There are unanswered questions on a proposed sales tax to raise millions for affordable housing, but the Denver City Council said the issue was too important not to put on the November ballot.
In early July, Democratic Mayor Mike Johnston sent a proposal to the council for a .5% sales tax to create a fund for affordable housing and related housing support services throughout the city. As the council worked through amendments to bill, many members complained the process was rushed and there wasn’t enough time to gather public comment.
Despite concerns, the council voted 9-4 on Monday to put the sales tax on the November ballot and Johnston signed the bill on Tuesday. Food, fuel, medical supplies and personal hygiene products are exempted from the tax.
“Denverites have never had the opportunity to vote directly on affordable housing in this city,” Johnston posted on X, the platform formerly known as Twitter. “That changes this November.”
Most members of the council commented on the bill and several stated affordable housing is the top concern expressed by constituents. Some members voiced concern the additional sales tax on the November ballot might dissuade voters from passing a .34% sales tax to raise $70 million annually to support Denver Health, the city’s hospital system. If both pass, Denver’s sales tax would be 9.65%.
An amendment was passed to put a 40-year sunset in place.
“I will say at $100 million a year for 40 years, that’s $4 billion,” councilwoman Amanda Sawyer said before the sunset amendment was passed. “So if we can’t solve this in a generation and a half and $4 billion, then we can’t solve this.”
Sawyer joined Flor Alvidrez, Kevin Flynn and Stacie Gilmore in voting against the overall bill.
“Just a reality check on this: In 40 years I will be 94 years old,” Gilmore said. “I would be close to 100 years old when this sunsets. … We’re making this up as we go along. We haven’t explored any – zero – of the unintended consequences that could happen to homeowners of color in our city.”
Alvidrez stated she supported a 10-year sunset and pushed for more review.
“We need to consider a more holistic approach that addresses root causes of our housing crisis instead of relying on Band-Aid solutions in that we keep throwing money at the problem,” Alvidrez said. “In the last year we’ve spent unprecedented amounts on rental assistance and homeless resolution, yet the number of people experiencing homelessness has risen.”
Sarah Parady, one of the bill’s sponsors, said if voters approve the tax increase and the fund, it would create a public housing entity to compete with the private sector.
“We can begin to actually compete in the housing market with the for-profit landlords because our rents will be lower … because we’re not in it to make a gigantic profit like these landlords that have rapaciously overtaken our city in the last couple of decades,” Parady said. “… with the commodification and financialization of housing, the way to compete with that is to have a public sector.”