A higher sales tax in Denver, which voters will decide on, could impact the most vulnerable communities
CBS 4 News
We are a week away from Election Day, and Denver voters will decide whether to approve the largest dedicated sales tax in city history. One of two measures that would hike the sales tax aims to increase affordable housing in the Mile High City, which has become one of the most expensive real estate markets in the country.
Measure 2R aims to raise the city's sales tax by 0.5% to generate $100 million and Mayor Mike Johnston has proposed it to create more affordable housing in Denver. The proposal looks to add an extra half-percent tax to some sales, for example, an equivalent 5 cents on a $10 purchase.
As for Ballot Measure 2Q, a city sales tax of .34% would be added on $10 purchases with the tax revenue going towards Denver Health. It would help offset the hospital's uncompensated care.
If both measures pass, that would put the city sales tax over 9%.
Some residents are willing to accept a higher sales tax for more affordable housing and health care, while others fear it will leave them struggling financially.
Inside the Casa de Rosal senior affordable housing complex, a group of women made wreaths while visiting their loved one, Carmen Esparza, who turns 93 next month.
As people age, the cost of living increases. For Esparza's daughter, Lupe Rael, a Denver resident herself, she feels the cost of living just keeps rising.
"If my mom and dad hadn't saved, my mom couldn't afford to stay here -- her SSI check would cover her entire rent."
Unfortunately for some at this complex, affordable housing is not truly affordable.
Andrea Loudd, another resident who runs a no-cost grocery market, fears that a sales tax increase could make it even harder for people on fixed incomes to get by.
"A lot of people think just because we are on a fixed income we don't have to pay taxes ... we have to pay all of that," said Loudd.
Since 2010, rents in Denver have increased by about 50%, highlighting the need for affordable housing. The proposed measure would raise the city's sales tax by 0.5% to generate $100 million, creating more affordable housing units and even lowering the cost of rent.
However, not everyone agrees that the burden should fall on taxpayers. Carly West with the Denver Chamber of Commerce noted that while they support the Denver Health measure, there is division over the affordable housing measure.
"Businesses recognize the need for Denver Health as a critical safety net for the community," said West.
Still, the question remains whether a higher sales tax would negatively impact struggling businesses, suggesting that a more collaborative approach with local businesses is necessary.
While residents at the Casa de Rosal apartments are simply hoping to manage the potential increase in sales tax.
"You raise the sales tax, that money is still going to be sucked out of a person's fixed income," said Loudd.
In Denver, the current sales tax is 8.81%, and with the proposed increase, it could rise significantly, making it higher than the sales tax in Los Angeles and New York.