Just when you think something is done, it isn’t.
A maneuver on the House floor today called a “Smoke out” will bring SB135 (city sales tax increases) to the House floor even though a committee had voted it down. Â ALL the Rep’s will vote on it now.
Please contact all your Rep’s before noon tomorrow (Tue).
Choose some point or points you think might resonate:
— Very likely there will be significant tax increases this session for highways. So this is not the time to be adding more tax increases to what already is probably coming!
– Talk about a tax increase! This one is a 50% increase in sales tax for cities! (2% to 3% is a 50% increase!) This is huge, especially for Sioux Falls, where population is growing, and sales tax revenue too – much faster than the population. The Argus just reported Sioux Falls has a reserve equal to 37.2% of its budget. Some cities may need new revenue, but even for those, this is the wrong way to raise it.
— This bill raises the most regressive tax we have!
SB135 hits harder on the lower-income people, who already pay a greater portion of income than the well-off. Legislators like to tout what a low income state SD is. Well, we do have lower taxes overall, but only for some of us. People with lowest fifth of incomes pay a higher portion of income than the national average.
— This bill would take more food off tables. Families with limited budgets for food already lose 3 weeks worth of food over a year to state and local tax. This bill would cost them 3-and-a-half weeks worth.
— SB135 is for special projects and requires a local vote, and legislators love “local control.”  But you know how a city can call just about anything a special project and bring out supporters in a low-turnout election. (streets for Sioux Falls. How special is that?)
Please help these Rep’s see that meeting basic human needs (food and heat) should have their higher priority than local control.
TO CONTACT REP’S: Email them.
The format is  rep.lastname@state.sd.us
Call and leave a message for one or two Rep’s,  605-773-3851
I order most all hard goods sales tax free from the web. I come through Minnesota often & buy most food tax free at Worthington. I do buy ice cream & gas here. I go to restaurants but not so often as before. Service is poor and price with tax is high.
Raising sales tax will make for more like me. End result could be less sales and same tax revenue.
Bill was killed in a tie vote 33-33, 4 absent! Woo-Hoo!
The legislature should improve their focus. The future is E-commerce. Present reliance on sales tax will not work in the future. 90% of sales is still local retail. This will diminish because prices and selection are better from the web. Raising the sales tax makes it happen faster. Property tax revenue will decline from empty retail space. This is already evident. They’ll think the answer is an income tax. Wrong, then people leave the state. How about warehouse centers? 40 acres of Ebay. People are charged tax only when they receive the product in their state. Nobody lives in SD. Customers are everywhere else. More people move here for jobs. They buy from their employer at a discount. More sales volume and revenue. Commercial & warehouse development spurns a building boom (jobs & taxed local materials). New business parks and homes for people moving in (property tax increase & rise).
We’re in the right place at the right time. Lawyers in the legislature steer into the past. What’s especially needed is entrepreneurs to work some magic. The good old boys (both of them) own the political types and prevent new blood from bringing real uncorrected business here.
Uncorrupted