Council hits pause on mayor's hasty tax plan
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Denver Mayor Mike Johnston announcing a new tax hike plan. Photo: Esteban L. Hernandez/Axios
The Denver City Council dealt Mayor Mike Johnston's proposal to hike taxes to fund affordable housing a significant blow on Wednesday.
The big picture: A council committee postponed moving the measure forward in order to obtain more details about how Johnston's plan to generate $100 million annually by raising the sales tax will actually work.
- The plan, introduced earlier this month, would provide money to finance, build and maintain rental and for-sale homes, as well as fund services to help people keep their housing.
Why it matters: The decision to wait is a swift and public rebuke of Johnston's latest attempt to rush a grand plan through without the council's full backing or consideration.
Threat level: The council is working on a time crunch. They have until Aug. 26 to vote on putting the measure onto the November ballot.
State of play: Councilmember Jamie Torres says Johnston's tax proposal doesn't have her support yet because it's not specific enough. For example, she wants it to focus on housing for those making $54,780 or less a year (or 60% of the area median income).
- Council members during Wednesday's meeting said the proposal felt rushed, lacked community outreach from the mayor's administration, and they questioned the impact of a sales tax increase on the public.
Between the lines: Postponements are fairly uncommon at the committee level, and often occur to give bill sponsors more time to provide details.
- Council committees don't "kill" bills, and most measures are considered by the full council, which has final say.
Context: The money the plan would raise could pay for as many as 44,000 affordable housing units over the next 10 years, according to Johnston, while increasing the city's overall sales tax rate for the eighth time since 2014.
- The city's chief housing officer Jamie Rife on Wednesday told council members the plan would have a "meaningful impact" on making the city more affordable.
- Councilmember Sarah Parady, who supported the measure, said Denver "absolutely needs the money."
The other side: Former Denver Mayor Wellington Webb told us he's "disappointed" Johnston is rushing this affordable housing tax proposal.
- Webb fears it could prevent a second proposed sales tax providing funding to Denver Health from passing at a time when "the public is getting tired of taxes."
What they're saying: "The mayor could've pushed Denver Health [this November] and then pushed housing in the spring," Webb told us by text. "It was noticeable he didn't mention Denver Health in his State of the City address."
What's next: Johnston's measure will return to the city's safety and housing committee for consideration on Aug. 7.