Boulder County Ballot Issue 1B (2023)
YES / FOR. The lack of affordable housing is perhaps one of the greatest needs that Boulder County faces.
Boulder County Ballot Issue 1B
AFFORDABLE AND ATTAINABLE SALES AND USE TAX EXTENSION AND REVENUE CHANGE
AFFORDABLE AND ATTAINABLE SALES AND USE TAX EXTENSION AND REVENUE CHANGE WITH NO INCREASE IN ANY COUNTY TAX, SHALL THE COUNTY’S EXISTING 0.185% SALES AND USE TAX APPROVED IN 2018 PURSUANT TO RESOLUTION NO. 2018-76 BE EXTENDED FOR FIFTEEN (15) YEARS FOR THE PURPOSES OF FUNDING AFFORDABLE AND ATTAINABLE HOUSING AND RELATED SUPPORT SERVICES WITHIN BOULDER COUNTY, INCLUDING BUT NOT LIMITED TO: THE COSTS OF DEVELOPMENT, OPERATION, ACQUISITION, PRESERVATION, RENOVATION, MAINTENANCE AND CONSTRUCTION OF FOR-SALE AND RENTAL HOMES FOR LOW AND MODERATE INCOME HOUSEHOLDS AND LOCAL WORKFORCE; SUPPORTIVE HOUSING; SERVICES THAT SUPPORT HOUSING STABILITY; GRANTS TO HOUSING AUTHORITIES, NONPROFIT AFFORDABLE HOUSING PROVIDERS, AND LOCAL MUNICIPALITIES; AND SHALL THE REVENUES AND THE EARNINGS ON THE INVESTMENT OF THE PROCEEDS OF SUCH TAX CONSTITUTE A VOTER APPROVED REVENUE CHANGE; ALL IN ACCORDANCE WITH BOARD OF COUNTY COMMISSIONERS’ RESOLUTION NO. 2023-070?
YES / FOR. To have context for how much money the Boulder County affordable housing fund will raise and spend, I have noted reporting from Shay Castle at the Boulder Beat:
The tax brings in tens of millions of dollars a year — $12 million in 2021; $12.5 million in 2022 and a projected $17.78 million this year — making up 15.6% of the county’s total sales/use revenue, according to a county spokesperson.
It’s important to note that unlike measure 1A open space extension, Boulder County does not currently have a fund for affordable housing. Passing measure 1B would be another significant improvement particularly for the City of Boulder, and this money would be in addition to money that is becoming available to municipalities from Prop 123 passed statewide in 2022 to fund affordable housing in Colorado.
The need for more affordable housing is massive. Here is an infographic from Boulder County:
Sales taxes tend to be more regressive than property taxes. Why are we using a sales tax instead of a property tax to fund affordable housing, particularly when the lack of housing causes the prices of existing properties to rise?
A better policy would be to fund affordable housing through property taxes. In doing so, funding would increase as property values increase, and vice versa. Unfortunately, our political leadership almost always consists of homeowners, and are elected by mostly homeowners, such that it’s nearly impossible to fund affordable housing through property taxes. In fact, the only tax to fail in the City of Boulder in the past 15 years was to fund affordable housing with a property tax in 2009, which failed 58-42%. (“It’s been 11 years since Boulder voters turned down a local tax”, Boulder Beat, 2020).
Given the political realities of property taxes, passing a sales tax is better than nothing.
Additional Reporting, Commentary, and Sources
County Attorney’s Office: 2023 Ballot Measures – Boulder County
Affordable Housing one-pager summary – Boulder County
Boulder County Ballot Issue 1B: Affordable Housing Tax Extension and Revenue Change – Boulder Beat
Reso 23- Housing tax extension proposal (8.14.2023) – Boulder County