Wednesday, June 26, 2024

Denver Health Takes Sales Tax Near Ten Percent

Denver Health Medical CenterDenver Health Medical Center | Photo by Katie Wood/Denver Post

Sales tax in Denver is rapidly approaching 10 percent of the sale price. It currently stands at 8.81 percent, reflecting state, special districts, and city taxes.

denver sales tax

Several new sales taxes are being proposed with the largest from Denver Health of .34 percent, which would raise Denver to 9.15, making it the highest sales tax city in the Denver metro area. The new rate would jump to 9.61 if all new taxes were approved.

The Metro area sales tax collections have been flat for a year and are now declining, reflecting a falloff in population growth and economic activity. Recent polls show when the public is asked, affordability is a major complaint about living in Denver, along with inflation. Affordability is, in fact, one of the main reasons people cite for moving out of Denver. Taxes affect the affordability of an area and sales taxes have a negative impact on local consumers and can be especially burdensome on the low-income population.

Denver has been rapidly raising its sales tax rate the last five years from 3.6 percent in 2018 to the 4.81 today, with significant increase for climate programs, homelessness, college scholarships, food security, mental health and parks.

Will Denver voters finally say no to new taxes?

Denver Metro Sales Tax Revenue Declines June 24, 2024

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