Entries Tagged 'food tax' ↓

I actually support this idea;

The City of Sioux Falls will be launching a new mobile market offering healthy foods at an affordable cost.

This would include multiple buses with markets stationed throughout neighborhoods in Sioux Falls.

The city will be giving two hundred and fifty thousand dollars to Sioux Falls Thrive to pilot the “Eat Well Sioux Falls mobile market.”

One of the best things about this idea is that the group pushing this, Thrive, lead by former city councilor Michelle Erpenbach, is that they are not re-inventing the wheel, they are instituting the proposal built on proven programs used in other cities and countries.

If you watch the entire presser, you will also realize that the program is expected to be self-sustaining after 18 months. In other words this isn’t just another problem the city throws money at and forgets about a year later, there is a long term goal to make this work.

One of the other intriguing parts is that they will try to help people sign up for SNAP benefits if they need that assistance. I would go even a step farther and have job listings and access to employment and higher education opportunities.

Let’s face it, between inflation, the roller coaster economy, high cost of housing and low wage jobs in Sioux Falls we have put ourselves in this place.

I was astonished to hear in the latest financial report from the city that in 2022 over 50% of sales tax revenue came from restaurants. The hospitality industry is known for some of the lowest wages of any sector.

I’m not sure why the service industry is propping up our sales tax collection but it is proof our economy in Sioux Falls is being supported by a low wage industry. Maybe Thrive needs to look at this disconnect?

I think everyone should have access to affordable food but they also should have access to liveable wages.

DakotaNews chief softball pitcher, Brian Allen, recently did an interview with Paul asking him what we should focus on in 2023. Paul said it was time to get back to focusing on infrastructure.

I guess it only took 5 years for Paul to figure out the simple premise of local municipal government; you collect taxes and fees and provide essential services like road maintenance, water and sewer, public safety and outdoor recreation in our parks.

Ever since Mayor Munson, the city has focused more and more on chipping away at our 2nd penny for things like leather chairs for a private movie theater, landscaping and ‘other stuff’ for a private research facility, butterflies and tennis courts while giving massive tax breaks to welfare queen developers.

When former city commissioner Loila Hunking proposed the 2nd penny tax decades ago it was to be in a lockbox and only to be used on road maintenance and in rare occasions other infrastructure projects, since then the penny has been on a wild spending spree that has little to do with the pothole in front of your house.

It often cracks me up listening to past and current mayors and city councilors talk about how we need to ‘get back to’ focusing on infrastructure.

Don’t be fooled by the promises. There is going to be a big fight in Pierre this winter over reducing the food tax and property taxes, one of the proposals will win at the end of the day (I think the property tax cut has a better chance). Mayors and councilors across the state will be crying about the revenue loss and will be asking how they will be able to keep up with essential services and infrastructure.

Let me give you a little advice; stop spending our tax dollars on stupid sh!t.

There has always been a long standing tradition of our local media throwing the good professor under the bus, even after he died, there is still an effort to paint Kermit as too fiscally conservative, yet over 20 years ago when he served in the legislature, he tried to cut the food tax by 50%;

2001 

Senator Kermit Staggers, a Sioux Falls Republican, proposed reducing the state sales tax on food to 2% from the then-4% rate. The Senate Taxation Committee killed it 5-4. SB 171

2002 

Senator Staggers again proposed reducing the state sales tax on food to 2% from the then-4% rate. The Senate State Affairs Committee killed it 6-2. SB 67 

Staggers also led a small bipartisan group of lawmakers who wanted to exempt food from the state sales tax in North Sioux City and Dakota Dunes. The Senate Taxation Committee killed it 7-1. SB 116

Even when Kermit served on the city council he fought against tax and fee increases. Kermit had a big heart, and he always looked after the working class of this state and city. Funny how twenty years ago Staggers had the vision that the food tax was regressive. This coming from a supposed extreme conservative.

I was surprised the media didn’t use this information to further criticize him, maybe 20 years is too soon?

Guest Post by by David Z for Mayor and Patricia Lucas

I want Sioux Falls to be a thriving, robust city with healthy citizens. Healthy citizens need a nutritious diet based on regular access to fruits, vegetables, grains, and meat.

This goal has become increasingly challenging. In our state of South Dakota, one out of nine individuals is food insecure and one of every six children is at risk of going hungry. The closure of grocery stores, higher cost of food, transportation limitations, and the COVID pandemic make the problem of food access critical. Some areas of Sioux Falls don’t have nearby supermarkets – they are food deserts. Food deserts occur most often in rundown parts of a city when grocery stores move away from high crime and low income areas. The HyVee on Kiwanis Avenue recently closed creating a food desert.

A former manager of this supermarket commented on www.reddit.com that the closure of this store “will undoubtedly impact countless families and individuals who shopped there on a highly consistent basis. A majority of the clientele were elderly, disabled, and lower income shoppers who may already have a difficult time in getting to the grocery store, especially in frigid winter months … it really is leaving behind a food desert.”

This is a crisis for our city of Sioux Falls. Malnourished people can become obese, have heart disease, and suffer from type 2 diabetes. Children can suffer even more. Hunger can slow their mental and physical development. They don’t do well in school and have lower graduation rates. Hungry children often don’t reach their full potential and remain disadvantaged during adulthood. Hunger results in reduced health and that increases medical costs and expensive emergency room visits.

A short term solution for hunger is providing food access through charities and government programs like food stamps and subsidized school lunches. While these excellent programs solve critical needs, they don’t solve the whole problem. We can make food more affordable by removing the sales tax on food. City government can subsidize placing grocery stores in food deserts and thereby increase local access to healthy nutritious food at reasonable cost. Urban agriculture can provide gardeners with delightful fresh fruits and vegetables. We can support the health and welfare of Sioux Falls by investing in our citizens of all ages, sexes, income levels, and races. We improve the present and build the future. Let’s solve local hunger together.

A gentleman tonight during public input at the City Council meeting put this graphic up on the overhead during his presentation. I was disappointed he ran out of time before he started to address TIFs. I should recruit him to write for my blog.

Click on below image to Enlarge

GROCERY SHOPPERS PAID MORE FOR THEIR FOOD

TO MAKE POSSIBLE SD’S SUCCESS AT THE SUPREME COURT

For 14 years South Dakotans have been paying higher tax on their groceries in order to make it possible for South Dakota to win its tax case in the Supreme Court.

How did this happen? The preparation for the state to collect sales tax on online sales caused a significant hike in the food tax. It did not cause a tax increase on any other purchases, only food.

Before 2003, South Dakota cities had been limited to 1% tax on food. Then, tax “streamlining” rules were needed in order to position the state to tax online sales. The new rules said each city may have only one sales tax rate, even though the rules allowed the state itself to have a lower rate on food, even zero tax.

With the new rules, cities’ food taxes rose from 1% to 2% in most South Dakota cities, rather than lowering the tax on other things to match the 1% on food. Some cities had not been taxing on food at all, such as Rapid City, Mitchell, Spearfish, Pierre, New Underwood, and Wentworth. They were forced to start taxing groceries.

“The higher food tax has meant South Dakotans have been paying more for every breakfast, lunch and dinner for 14 years now to help win the Supreme Court case on collecting online sales tax,” says Cathy Brechtelsbauer, state coordinator for Bread for the World.

“We saw it coming back then. Some legislators told us they would cut the food tax when the state finally receives tax from online sales,” she remembers, “so the next legislature should recognize the contribution grocery shoppers have made to this Supreme Court success and make the next tax cut a cut in the food tax.”

With cities still allowed only one tax rate, a food tax cut would need to be a reduction in the state’s portion of the sales tax.

News release, June 25, 2018

BREAD FOR THE WORLD -SOUTH DAKOTA

Cathy Brechtelsbauer, state coordinator, 605-335-6222, ryebread@breadrising.org

DaCola Note; This is one of the reasons I objected the half-cent increase in sales taxes to pay teachers. I found it counter productive to increase taxes on food to pay educators more. I would propose a total tax ban on food, not just a decrease. I know this has gone to the voters twice already and failed, but with the SCOTUS ruling I think this would be the perfect opportunity to end the food tax. I also think the state legislature should end exemptions on certain items that are not taxed now, like advertising. I have also argued that this won’t help main street businesses one iota. Even by taxing online items and essentially increasing the costs of those items so they can implement new accounting software, online shopping will still be less expensive due to volume, and more convenient because of choices. I also think the money raised by the state in new taxes will quickly be ate up by expanding government agencies that will be responsible in collecting these taxes. At the end of the day we have accomplished nothing but increasing prices for consumers to grow government. Thanks Marty Jackley and Deb Peters, for nothing.

As if it isn’t bad enough that the state taxes food, and increased it by a half penny last year, now the state wants to implement another penny and a half on Farmer’s Market food sold by Falls Park. The state may be able to pull this off. Because state law says they can charge this additional tax to any retailer at a tourist site.

State Rep. Jamie Smith, D-Sioux Falls, said while he understands the revenue office is only enforcing the laws that are already on the books, an exemption for farmers markets is something he’d support. While he believes there shouldn’t be any taxation on food, burdening local producers with a higher tax than grocery stores will only deter the public from using alternative food sources.

“We’re discouraging locally grown products,” he said. “Those are dollars staying local right here. The person that grew that carrot lives here, spends money here and goes to school here.”

I guess I would have two arguments against the additional tax. First off, they are not selling souvenirs, they are selling FOOD. Secondly, the Farmer’s Market isn’t really in Falls Park, it’s actually wedged between a stinky meat packing plant, and a blue-collar bar, hardly the tourist attraction. People come to the market to buy fresh produce and the occasional jar of raw honey. They are not buying T-shirts of Falls Park.

I guess things are getting so desperate for the state and the city, they are looking to start charging additional fees on anything they can, including claiming organic food products are now souvenirs.

The sad part is they continue to make excuses about the farm economy and internet sales instead of offering solutions (and there are really simple solutions out there). They keep wanting to beat the dead horse hoping to suck more money out of it.

Let’s face it, sales taxes are regressive and primitive. Don’t get me wrong, they are applicable for many things, but should NEVER be charged on necessities like Food, Clothing and Energy costs.

Of course everyone fears an income tax. To most hard working South Dakotans, an income would never even touch you or effect you.

I would suggest we implement a three step process over 6 years;

First step would be to eliminate ALL sales taxes on anything tangible or a service that is considered a necessity of life or living. For example, you wouldn’t pay a tax to get your tire fixed on your car but you would pay one at a sun tanning salon. I would then increase that sales tax to 10-12% on all the remaining products and services. There would also be a ‘luxury’ clause. If you bought a minivan for your family of 5, you probably wouldn’t pay a tax on that, but if you bought a Porsche Crossover, there may be a tax. Same would go with luxury homes.

I would wait two years before implementing step two, which would be a income tax on corporations profiting more then $2 million a year, singles making more than $100K a year and households making more than $200k a year. This would be a flat tax of about 5-7% with NO exemptions.

I would wait another two years to implement the last stage, shut down Video Lottery. I would keep property taxes where they are.

Let’s face it, we can continue to bitch and complain about sales tax revenue going in the hole, but as the gap between the rich and poor get bigger, it’s reality, because it is a regressive tax. Tax those who can afford it.

You know my feelings on this. While the (business) community bands together to help a food bank charity, wouldn’t it just be better if these businesses paid their employees enough so they can buy their own food? I know we will never totally eliminate hunger. There will always be people who can’t afford food, such as those on disability or the elderly that can’t work anymore. But it is a sad when a working family can’t afford to buy their own food.

On top of that, the ignorance of our governor and state legislature raising taxes on food so we can pay ONE sector of public employees more (a program that is running into snags and not really working the way it intended).

It is time our lawmakers get serious about the minimum wage in our state and raising the wages of ALL workers in this state to compete with other states. Enough of selling us as a low wage state.

Of course some lawmakers still think it is all just a big joke. Our esteemed mayor took that opportunity when he jokingly said this during the above press conference about the administration building (about 6 minutes in);

“I like new and big buildings to . . . I do. Did I just say that? I think building new is better then remodeling.”

The poor and the hungry seem to be just a big joke to some people. Make sure the developers and contractors in this town stay well fed. And while we are planning to bond for a $22 million dollar administration building, we are proposing no wage increases for city employees in 2017. Better funnel some more money through the development foundation so they can give it to the food bank. Now that’s workforce development at it’s best!

I commend anybody who is willing to give towards combatting hunger  in SD;

large donation from a Huron couple is helping a non-profit organization which fights hunger in the state.

With a food distribution to follow, officials with Feeding South Dakota announced the $1 million donation from Paul and Muffy Christen Tuesday.

The money will go into an endowment. Its interest will feed South Dakotans for years to come.

I think it is great many leaders and philantropists are coming forward in SD to help this charity, but I often wonder if these same leaders put the same amount of time and effort into raising wages in South Dakota and raising our quality of life if it would be time, energy and money better spent instead of helping these people once they hit the bottom of the pyramid. it would also be nice if we eliminated the sales tax on food.

Like I said, there will always be ‘hungry’ people in our state that need assistance, but let’s work harder to reduce those numbers by helping some of these people make a living wage. Prevention is usually the best cure to a problem.