Colorado Politics

Voters favor sales tax hike for Denver Health — but not for affordable housing

Denver voters are split on two sales tax measures that would raise $100 million for housing and earmark $70 million to help fund the city’s safety net health care system.  

The sales tax for Denver Health, the city’s safety net hospital system, was more palatable for voters, with the unofficial results showing a 12-point lead in favor of the measure. It was ahead, 57% to 43%, as of a 10 p.m., according to the latest tally.

The bigger sales tax hike, meant to pay for affordable housing, is getting less support, and residents  opposed to the measure were outvoting those in favor by about 3.5 points. So far, the vote was split: 48.3% in favor against 51.7% opposed.  

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Proponents of the proposed tax for Denver Health said the hospital system is suffering from uncompensated care — the cost of treating patients who are not insured. 

Denver Health said its uncompensated care costs have jumped $10 million year-over-year, primarily the result of Denver’s illegal immigration crisis.

While no one knows with certainly how many of the roughly 43,000 immigrants who came to Denver stayed, the number of plane, train and bus tickets suggest about half have. Early in the humanitarian crisis, Denver officials decided that local taxpayers would assume responsibility for the response. Primarily borne locally, the cost to date is roughly $76 million, according to the city.

While the 0.34-point sales tax increase won’t solve all of Denver Health’s financial woes, it will help the hospital keep some services going, officials previously told The Denver Gazette.

The measure did not clear the City Council without opposition. Long-time Councilmember Kevin Flynn voted against the proposal, calling sales tax increases a “regressive” method of raising revenue.

“I have a serious concern about burdening Denver taxpayers, and I know that some visitors pay Denver sales tax, as well,” Flynn said in June. “Every time I pay my mortgage, and my property taxes are in that, it goes to pay off bonds that have built capital construction at Denver Health.”

Meanwhile, voters were somewhat opposed to the bigger sales tax question — a 0.5-point increase designed to raise money for affordable housing. It is currently losing as of the first ballot drop at 7:05 p.m.

Introduced by Johnston, the sales tax will sunset after 40 years. In that time, the tax, if approved, is estimated to raise roughly $100 million annually and help fund 20,000 more units of affordable housing, the Johnston administration said. 

Several councilmembers — Kevin Flynn, Flor Alvidrez, Stacie Gilmore and Amanda Sawyer — balked at the sales tax hike proposal.

“The majority of sales tax increases, if not all, were prior to 2020. It’s a very different landscape for residents in Montpellier and Green Valley Ranch,” Gilmore said in August. “People are stretched to the max. This council have given this administration carte blanche since July 17 of last year, and I cannot in good faith give carte blanche to 40 years of sales taxes.”

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