Property Taxes

Stop the Opt Out

Local group is circulating this petition, I signed it today;

The Sioux Falls School Board just voted to approve ANOTHER opt out – this time to the tune of $2.1M for 10 years. The opt-out will allow the school district to raise additional funds beyond what they get in their existing tax levy and state aid, by collecting taxes from property owners in the district. SD Law allows citizens to bring this to a vote of the people (rather than a board of five unilaterally making the decision for all of Sioux Falls residents.) Deadline is July 17th. We will be circulating petitions to bring the opt-out to a public vote. This group will be for sharing information and locations to sign a petition (if you are a registered voter in the Sioux Falls School District) or if you would like to circulate a petition (have to be a registered voter in the State of South Dakota) you can find out more information for events/opportunities to volunteer at.

You know my feelings on this, stop handing out TIFs like candy and our opt outs would go away.

Anonymous Legislator drops the bomb on property taxes and developer greed

Not sure ‘who’ this legislator is, but they apparently were in the legislature for at least 14 years, they left the comment on a thread on that ‘other’ blog. Notice the trashing of TIFs, they are absolutely right, they are driving up our taxes;

A few comments on property tax and what needs to be done to accommodate meaningful and responsible legislation to address the issue.

First of all the problem was created at the local level in the name of economic development by local officials and developers. The locals wanted tools in their “economic development tool box” and the legislature always pandered to their wants. In addition developers no longer want investors to in their vocabulary, They want that investment to come from the taxpayer.

This is a complex issue and cannot be resolved in 1 legislative session, but it must be done. I saw this issue become out of control during my 14 years on the tax committee when I was in the legislature, and it has only become worse over the past 10 years.

I believe that to address this issue some concessions must be made now, they include but are not limited to:
1. Put a moratorium on the creation and limit the use of TIFD’s, by local governing bodies beginning immediately. These things have proliferated and one is never paid off before several more are initiated. 12 to 20 active TIFD’s in any local government is profound abuse.
2. Put a moratorium on the creation and/or use of any further discretionary tax formulas. These can also be used in a TIFD and that provision needs to explicitly deny that.
3. Put a moratorium on the creation of any additional subdivision taxing districts within local government.
4. Prohibit the creation of any new political/public subdivisions by the legislature.
5. Restrict/prohibit any new “opt outs” and freeze those already in place from renewing or or expanding those opt outs.
6. Freeze levies for a period for those subdivisions already in existence, except if they should choose to lower the existing levy.
7. Freeze all specials and road tax on real estate at current levels, unless it is a reduction.
8. Reduce bonding authority levels of all local governing bodies.
9. Further restrict growth in local governing bodies budgets.
10. Restrict the BBB tax, BID tax, and city sales tax to current levels, and prohibit the use the use of these taxes to only the general fund with an obligation to reduce property tax. It has become increasingly evident that these dollars are being used as a cash payout to developers with little or no regard for the taxpayer. Restrict BID boards and all other political subdivisions from giving tax revenue to any other body with taxing authority.
11. Require local governing bodies who have acquired real estate to get at minimum the price they paid for the property, rather than just a fraction of what they paid for it.
12. Prohibit any non-profit with taxing authority from asking for any local governing body for contributions outside of their tax base.
This certainly is not a complete list, but it is a beginning. I firmly believe many of these things need to be done for accountability at the local level. I blame the legislature for many of the problems associated to property tax increases. Most off the issues prevalent today are caused by the term “economic development”, in an effort to lower taxes. It doesn’t work, never has worked, and will never work. Countless studies have indicated, time and again, that these issues cause an increase in taxation rather than a reduction.

Furthermore these thing are being abused by the affluent, developers, “non profits”, and the unknowing and uninformed (local elected officials), all at the expense of the local taxpayers,
and that is a fact. Local property taxpayers are being lead to slaughter in the name of corporate welfare, and it needs to stop. If a developer thinks he/she has a valid idea he/they should have no problem finding investors to support the idea without the taxpayers investment which, is a liability on them and never produces a dividend.

I know this will be a hard sell as developers and the unknowing locals will fight it with a vengeance. It has become apparent locally that elected officials don’t run the show, they are kept in the dark and fed sh_t like a mushroom.

Ask some hard questions of local officials about current activities in your area. They refuse to answer, skirt the issue, or lie. I have investigated and found the answers and the truth. Documentation is damning.

To provide adequate property tax relief requires doing a responsible study as to the real problems associated with it. To get a responsible study all of the issue listed previously must be considered, and that cannot be done responsibly during a short legislative session.

Initiating some or all of the previous stated issues can go a long way to improve a comprehensive study and reduce inflated values and property taxes. I understand the legislature did not cause the problem entirely, but they did enhance it and became enablers for the local governing bodies, who do not responsibly use the tools given to them. I know they asked for it, but like a child who doesn’t understand, sometimes you must take away their gift until they can totally understand the ramifications of improper use.

Municipalities are allowed a sales tax. The purpose behind that was to supplement their general fund budget. Not to use as grants to developers for millions of dollars.

There is a lot going on, misuse of those dollars needs to be cornered, if it is not it will only become worse for the taxpayer.

No new taxes would be necessary if local governments were made to be responsible.

Instead of Op-outs maybe we need to make TIFS harder to get

Ever since the State Morons in Pierre changed the rules for TIFs (can be for economic development now) They have exploded. I suggest that we limit them to severely damaged lands and low-income housing. The school district just did ANOTHER opt-out, and lied to the public about our taxes increasing. A foot soldier left this comment about the opt-out on Turdbook;

As regular taxpayers are asked to fish into their pockets for $2.1 million of additional money, each year for the next 10 years, be reminded that just for the TIF package given to the developers of The Steel District, the Sioux Falls School District will forego (aka not collect) $1.05 million in real estate tax revenue from those parcels in 2026. For the TIF package given to the developer of Cherapa II, the Sioux Falls School District will forego nearly $1.2 million of real estate tax revenue from those parcels in 2026.

In other words if we started eliminating TIFs and close out the current ones our taxes would actually go down. Did you know that 80% of property taxes paid in the school district and city are from single-family owner occupied homes. So yes, we are paying for these TIFs. And for what? A parking ramp? Public art? Tequila Bar? Seriously! If we eliminated ALL the TIFs we have on the books now the school district would take in MILLIONS in revenue from the big commercial developments. Why are homeowners asked to pay the majority of taxes in Sioux Falls? It should be a 50/50 split between homeowners and commercial property. TIFs never have much of a ROI, studies for decades across the US have shown they don’t stimulate growth and produce very few jobs except when being built. TIFs are a boondoggle and the average Joe is taking it in the shorts. In memoriam of a certain developer who passed recently, the council should make steps to eliminate TIFs from our city, once and for all.

What’s next for the Riverline District?

I can’t imagine the meetings at City Hall today after the SD Legislative Taxation Committee killed the 3rd penny tax in a squeaker, 7-6. It is no secret their ignorant plan was to convince some rubes from rural districts to support this so they can build a street. But most people knew the jig was up. This was about building a Convention Center that nobody wants or cares about. The Ice Ribbon is a great example of a project NO ONE, ABSOLUTELY NO ONE asked for. But now $16 million later here we are.

So some are asking, without this special 3rd penny tax authority can we move forward with the Riverline District? Yes and NO.

While I think the mayor is about as bright as a bar of soap in a truck stop restroom, I think he knew this may not pass, so they may have a backup plan.

I hate to break it to you Poops, but the legislature is dug in on this one, it ain’t going anywhere. Even if passed out of committee it would have been DEAD in the full legislature.

So how can they still salvage the Convention Center deal? It will be financial gymnastics, but they can still do it within their means, but on a smaller scale. My guess is they will push all bond expectations toward the project and see how much they can borrow. They have also been banking reserve funds which I think they want to use for a down payment (It is between $70-80 million) Why does the city have a savings account from our taxes that is 3x what ordinance asks for? With this surplus and borrowing authority the city could build this without a special tax, but the private donations would have to be significant.

My suggestion all along is to implement an INCOME tax on corporations in SF that have more then 500 employees, Hotels and Hospitality to pay for this. They are the benefactors of conventions, visitors and tourism, the average citizen buying a Twin Bing at the GC won’t benefit BUT these industries would. MAKE THEM PAY FOR IT!

To tell you the truth, the more I think about it, I am not opposed to the city buying the land, it has potential, but with this crappy tax revenue source killed, the city will have to get creative. My suggestion? Demo and plant grass, form a committee that will tell us the best use for the land for the least expensive capital improvement. One idea I had years ago is turning Fawick park into a sculpture garden and put all the SculptureWalk sculptures in the park as a destination, essentially an outdoor museum. We could do this here for minimal costs.

It is no secret that Poops would benefit financially thru this deal (still digging on this one, and will crack that case).

Make no mistake, TenHaken’s lack of leadership, transparency and vision put the last nail in this coffin, and I got to admit after I watched the vote live, I howled in enthusiasm. I think I even did a jig. I am a good jigger.

But don’t get lazy, they will try to cut a deal and we must ride their asses until they are dragging on a gravel road. This ain’t over.

The irony of all this is Poop’s record on getting things done. It is awful. And if I was him I would be embarrassed and resign. Bunker Ramp, 6th street bridge, Delbridge dead monkeys, and the constant lying and belittling of public inputers. YOU ARE NOT A LEADER. YOU ARE NOT A VISIONARY.