Denver Ballot Issue 2W: What You Need to Know
Denver Ballot Issue 2W on the November 2024 ballot addresses the city’s ability to retain and spend revenue collected from a specific excise tax on marijuana sales. This revenue is specifically earmarked for affordable housing initiatives. Without voter approval, the city might be required to refund these funds to taxpayers.
What is Denver Ballot Issue 2W?
Denver Ballot Issue 2W is a measure that asks Denver voters to allow the city to keep and spend revenue it collects from a 4.5% excise tax on marijuana sales. This excise tax was previously approved by voters and is specifically designated for funding affordable housing programs and services within the city. If the ballot initiative fails, the city may have to refund this tax revenue to marijuana businesses and taxpayers rather than using it for its intended purpose. To understand further about excise taxes you can check Excise Tax Definition.
Why is This on the Ballot?
Under the Taxpayer Bill of Rights (TABOR) in the Colorado Constitution, local governments are generally required to seek voter approval to retain and spend revenue that exceeds certain limits. Even if the tax was previously approved, if the revenue collected surpasses the projections used when initially approved, then voter approval is needed to keep and spend those “excess” funds. Ballot Issue 2W asks voters for permission to keep and use the marijuana excise tax revenue specifically for affordable housing programs.
What Does a “Yes” Vote Mean?
A “yes” vote on Ballot Issue 2W means that the City of Denver will be allowed to retain and spend all revenue collected from the 4.5% excise tax on marijuana sales for affordable housing programs. It prevents the city from having to refund this money to taxpayers and marijuana businesses. This would allow the continuation and potential expansion of affordable housing initiatives funded by these tax dollars.
What Does a “No” Vote Mean?
A “no” vote on Ballot Issue 2W means that the City of Denver will be required to refund the revenue collected from the 4.5% excise tax on marijuana sales to taxpayers and marijuana businesses. The funds would not be available for affordable housing programs as originally intended. The amount of the refund and the exact mechanism for its distribution would need to be determined.
Where Does the Money Go?
The revenue generated from the marijuana excise tax, if Ballot Issue 2W passes, will be used to fund a variety of affordable housing programs and services in Denver. These can include initiatives like rental assistance, supportive housing for individuals experiencing homelessness, development of new affordable housing units, and rehabilitation of existing affordable housing stock.
Frequently Asked Questions
What happens if Denver doesn’t retain the marijuana excise tax revenue?
If the city is not allowed to retain the revenue, it must refund the money to taxpayers and marijuana businesses. This would significantly reduce the funding available for affordable housing initiatives.
How much revenue are we talking about?
The exact amount of revenue varies year to year depending on marijuana sales. However, it represents a significant source of funding dedicated specifically to affordable housing programs.
What is TABOR and why does it require this vote?
TABOR is the Taxpayer Bill of Rights in the Colorado Constitution. It generally requires voter approval for government revenue to be retained and spent above certain limits. Even with a pre-existing tax approval, excess revenue triggers this requirement.
Will my taxes go up if Ballot Issue 2W passes?
No. Ballot Issue 2W does not create any new taxes or raise existing tax rates. It simply asks voters to allow the city to keep and spend revenue from an existing tax.
Where can I find more information about affordable housing in Denver?
You can find more information about Denver’s affordable housing programs on the City of Denver’s official website.
Summary
Denver Ballot Issue 2W is a measure concerning the city’s ability to use marijuana excise tax revenue for affordable housing. A “yes” vote allows the city to keep and spend the revenue for its intended purpose, while a “no” vote would require the city to refund the money. The outcome of this vote will directly impact the funding available for affordable housing programs in Denver.
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