Denver’s Ordinance 304 Sees Backlash From Leaders, Community Groups

Election Day is November 1, and of the measures Denverites will vote on, Ordinance 304 is facing increasing opposition as a proposal that would lower the city’s sales and use tax, along with capping the reduced rate.

The language on the ballot is as follows:

“Shall the voters of the City and County of Denver adopt an ordinance reducing the total sales and use tax levied in the City and County of Denver from 4.81 percent to 4.5 percent; setting the aggregate total sales and use tax levied at 4.5 percent, and requiring that if at any election the people of the City and County of Denver pass a special sales and use tax that exceeds the aggregate 4.5 percent the City must adjust the existing tax levy to comply with the 4.5 percent aggregate?”

Voting “yes” is an agreement to lower the tax by .31 percent and capping it there, impacting the amount residents pay buying within the city and online. Voting no is agreeing to keep the city’s sale and use tax at 4.81 percent.

The signature collection process was started by Garrett Flicker, chairman of the Denver Republican Party, who believes the measure will help low-income residents, whom he says end up disproportionately affected by higher sales taxes. He’s labeled the ordinance as a “much-needed break” for low-income residents.

However, not everyone agrees with Flicker, namely Mayor Hancock, the Denver City Council, and even the political committee No On 304—the latter explicitly made to shed light on the “excessive and unnecessary measure.”

Hancock called the measure a “threat” to the city’s recovery while announcing his 2022 budget proposal and said he believes it could cost the city up to $80 million in tax revenue; his 2022 budget is also based on the city having the same 4.81 percent sales tax.

City Council echoes the sentiment, with officials saying that passing the measure will cripple the city’s finances, directly impacting the city’s ability to pay for services like road repair, park maintenance, and services for people experiencing homelessness.

No On 304 expands on the same points, adding that Ordinance 304 would also “harm kids, families, seniors, and vulnerable community members by cutting preschool, college financial aid, mental health, and other voter-approved programs” while reducing funding for other essential city services.

Caring For Denver also introduced a resolution in opposition of Ordinance 304. They also note that the city needs to be able to fully utilize the current, available funds to continue recovery from the COVID-19 pandemic. The foundation formed in 2018 to address Denver’s mental health and substance misuse needs by growing community-informed solutions, though the resolution notes that Caring For Denver would be explicitly affected (alongside the work they do for the community) should this ordinance pass.