Denver voters set to pass one sales tax increase but reject another

DENVER — The questions were right next to each other on the ballot. 2Q and 2R. Both would increase sales taxes to fund projects and services their supporters said were essential. Yet voters had very different reactions.

Mayor Mike Johnston’s sales tax increase to fund affordable housing is set to be defeated by around three percentage points. Yet Denver Health’s sales tax increase to fund uncompensated care is passing by nearly 15% as of Wednesday night.

“I think a hospital system is a known entity. You know exactly what it does and how it works and what you’re funding,” Johnston told 9NEWS in an interview Wednesday. “I think affordable housing you don’t know where it’s going to go, what it’s going to look like. Will it be in your neighborhood? Will it decrease your property value? Will it affect your own backyard?”

Around 20,000 people chose to vote yes for 2Q and no for 2R. 

“We know affordable housing can be more complicated and more controversial,” Johnston said.

Amanda Sandoval is the Denver City Council President and one of the sponsors of the mayor’s affordable housing tax. 

“If they had to make a decision between healthcare and affordable housing, I think this time around the people definitely chose the healthcare,” Sandoval said.

She said without 2R, it’s back to the drawing board. The city projects it’s short around 40,000 affordable homes over the next decade. 

“I think we’re going to have to be really creative to come up with different solutions,” Sandoval said. “Our general fund cannot support the creation of all of those units, to be honest with you.”

Darrell Watson was also a sponsor of 2R in city council.

“I never question what the voter’s decisions are,” Watson said. “I do know that 2Q was essential. We needed to make sure that we are funding healthcare across the city and county and Denver and all the folks who come to Denver for support.”

One tax passed. The other failed. Thousands of voters split.  

“We will never give up, but it will make the path to affordability tougher,” Johnston said. 

Johnston said it’s unclear what the city’s plan is moving forward to build the necessary number of affordable housing units. He said they’re not ruling out putting it on the ballot again sometime in the future.