Denver voters will decide on two proposals to increase sales taxes, potentially generating close to $200 million annually. One proposal aims to raise sales taxes by 0.34 points to fund Denver Health, while Mayor Mike Johnston is pushing for another 0.5-point increase for affordable housing. Despite some pushback, business associations like the Downtown Denver Partnership and the Metro Denver Chamber of Commerce have not taken a clear position on the proposals but are calling for a balance between competitive tax structures and funding priorities. The Colorado Fiscal Institute sees sales taxes as regressive but acknowledges the benefits in capturing money from tourism. If approved, these tax rate increases will be the seventh and eighth adopted by Denver voters in six years, continuing a trend of increases since 2006. The chamber and the Downtown Denver Partnership are waiting to take a position until after ballots have been sent to voters, with the partnership likely to share its position around Labor Day. Sales tax increases have previously been approved for various purposes, such as education and mental health initiatives. However, with the ongoing shift towards services not subject to sales tax, consumers may see continued increases in sales tax rates to generate revenue.
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