Denver City Council advances proposed tax increase measure for affordable housing

DENVER ( KDVR ) — The Denver City Council met Monday night and voted to move forward with Mayor Mike Johnston’s affordable housing ballot proposal .

The proposal would increase the sales and use tax rate by 0.5% from 8.81% to 9.31%. The money would be used to pay for affordable housing projects.

The tax increase does have some exceptions and would not apply to everyday essentials like food, fuel and medical supplies.

Johnston’s team said the proposal change would raise about $100 million a year.

The proposal is now going to a second and final reading on Aug. 19, and if signed, it will be on the November ballot for voters to approve.

Johnston released this statement following the vote to move forward by the city council:

The opportunity for affordable housing for all Denverites is one step closer to the November ballot. Housing costs are a significant concern for the vast majority of our residents, and the teachers, nurses, seniors, and servers who make our city run are struggling to keep up. The creation of this fund is a critical step toward ensuring Denver is a city for everyone, not just the rich, and we are grateful for Council’s partnership in this mission.”

Denver Mayor Mike Johnston

According to the mayor’s office, the estimated $100 million annual fund would complement existing funding projects such as the Affordable Housing Fund and the Homelessness Resolution Fund.

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