Breaking down Denver's 8.81% sales tax: Where every cent goes
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If history is any indication, Denverites love to tax themselves. In fact, they've raised their own fees by more than 30% since 2018.
By the numbers: The city's overall sales tax rate sits at 8.81%.
- That figure includes Denver's 4.81% local sales tax, along with taxes for the state (2.9%), the Regional Transportation District (1%) and the Scientific and Cultural Facilities District (0.1%), which funds more than 300 cultural and arts organizations.
Zoom in: The 8.81% figure is largely buoyed by a handful of hikes approved by city voters over the last decade.
- The two most recent to take effect fund climate programs and housing and homeless services — both of which passed in 2020 and levy an additional 0.25% sales tax.
- This year, the climate protection tax is expected to generate about $51.8 million, while the housing and shelter tax is estimated to bring in about $52 million, per the latest revenue projections from Denver's finance department.
One of Denver's other largest voter-approved sales taxes, passed in 2018, puts 0.25% toward the Caring for Denver fund, which focuses on mental health and recovery programs.
- Another is a 0.25% tax dedicated to parks, open space, trails and waterways approved by voters in 2018.
The big picture: Colorado ranks 16th nationwide for its combined state and average local sales tax rates, which is 7.81%, according to a new report from the Tax Foundation, a conservative think tank based in Washington, D.C.
Yes, but: Colorado has the lowest non-zero state-level sales tax in the county, at 2.9%, per the Tax Foundation.
What's next: Denver voters are poised to weigh two new sales taxes on the November ballot.
- One, pushed by Mayor Mike Johnston, would add a 0.5% sales tax for affordable housing efforts. Another would raise taxes 0.34% to help cover Denver Health hospital's operating costs.
- If both are approved, the city's new overall rate would jump to nearly 10% — one of the highest in the state.
Go deeper: New tax plan will test voters' appetite for rate hike