Property Taxes

UPDATE II: The FIX is in on property taxes

UPDATE II: I went and talked to the equalization department today. After reviewing the increase, they explained to me that 90% of the increase is land value, in which is formulated different now. We also calculated that my taxes will probably go up $250 dollars next year, which is NOT $2 a month, just for the record.

UPDATE: I decided to go back and look at the records I could find

From 2008-2009 the value of my home went up 1.8%

From 2009-2012  the value of my home went up 0%

From 2012-2016  the value of my home went up 10% (aprox 2.5% per year)

From 2016-2017  the value of my home went up 1.8%

From 2017-2018  the value of my home went up 1.8%

From 2018-2019  the value of my home went up 2.3%

From 2019-2020  the value of my home went up 21.9%

As I predicted and warned people, the school bond, the new county jail and the multiple TIFs we hand out are going to catch up with us. The $2 a month boloney they pitched us was a farce, because I knew they were going to make hay with the assessments. And sure enough they did.

My increased assessments year after year have been steady, but reasonable. I have owned my home for 17+ years and my property taxes have doubled in that time.

I have done little upgrades to my home, except replacing windows, doors, adding new rain gutters a privacy fence and re-shingling after storm damage. I have done NO upgrades to the interior of my house.

So imagine my surprise when I got this in the mail yesterday;

Well, I was NOT surprised, I saw this coming like a freight train. We can’t keep borrowing money in Sioux Falls and not have a way to pay those bonds, so they bleed it out of us through back door tricks like assessments. Can I afford a 21.9% increase in my assessed value? I suppose, but it also means a lot less money in my pocket.

It was interesting listening to the State Legislators talk yesterday at the legislative coffee about state funding of education. Two Republicans made great points;

• The state gives the districts money and the districts decide how that money is spent (salaries, etc.).

• Administrator pay in SD ranks at 15th while teacher pay is at 49th. I haven’t checked that stat, but I know at one time in was around 22nd. There is a obvious disparity.

• Low voter turnout at school elections. The past school bond and school board elections both had around a 4% turnout. Basically the legislator was saying, if you want to have a say on how your local district is being funded, maybe you should show up and vote in these elections. AMEN Brother! But I also have to add their is voter suppression when you use super precincts, no precincts in the northern part of our city and have district finance department employees ‘hand count’ votes, while the business director puts those counts into the system without oversight.

Who knew that owning a house that was built in 1889 could increase in value by almost 22% in one year? Not bad for a home that is 131 years old. What a joke.

While most South Dakotans barely scrape by, $355 Billion sits here in tax free trust havens

How much is $355 Billion? It is 710 times the City of Sioux Falls yearly budget. Yeah, it’s a lot of dough, and most South Dakotans don’t have a clue our legislators are allowing this while our benefit to the state coffers is virtually ZERO;

In recent years, countries outside the US have been cracking down on offshore wealth. But according to an official in a traditional tax haven, who has watched as wealth has fled that country’s coffers for the US, the protections offered by states such as South Dakota are undermining global attempts to control tax dodging, kleptocracy and money-laundering. “One of the core issues in fighting a guerrilla war is that if the guerrillas have a safe harbour, you can’t win,” the official told me. “Well, the US is giving financial criminals a safe harbour, and a really effective safe harbour – far more effective than anything they ever had in Jersey or the Bahamas or wherever.”

That means legislators are nodding through bills that they do not understand, at the behest of an industry that is sucking in ever-greater volumes of money from all over the world. If this was happening on a Caribbean island, or a European micro-principality, it would not be surprising, but this is the US. Aren’t ordinary South Dakotans concerned about what their state is enabling?

“The voters don’t have a clue what this means. They’ve never seen a feudal society, they don’t have a clue what they’re enabling,” Wismer said. “I don’t think there are 100 people in this state who understand the ramifications of what we’ve done.”

That’s what we get with ONE party rule in South Dakota (and it doesn’t even matter which party). If we could even implement a teeny-tiny tax on this wealth, it would help us out tremendously in education, road funding and healthcare as well as many other things. We could eliminate video lottery, the food tax, reduce property taxes and help address our drug crisis in the state. But we continue to elect the greedy and the stupid (who are one in the same).

Redevelopment of the Core should have started a decade ago

I have been a follower of Strongtowns for almost 10 years now, and tried to bring Chuck into speak about 7 years ago but couldn’t scrounge up a sponsorship. I’m happy to see people trying to embrace their thinking, but I think we need to play some serious catchup.

Jodi makes a good point in her Sunday column today;

But I think a renewed focus on improving existing housing stock, redeveloping core neighborhoods and investing in infrastructure and amenities that draw people to those neighborhoods could help.

Help?! I have been pleading with city councilors for over a decade to implement a core neighborhood revitalization program through re-allocating TIF rebates to individual homeowners and small apartment owners in our core neighborhoods. It could be a multi-tier program that gives property tax rebates for certain kinds of upgrades as well as using federal grants and community development loans. While we are in the middle of a crisis right now in SF when it comes to affordable housing because we have allowed realtors and developers artificially inflate the market. We can’t cry over what we should have done, we need to implement these programs ASAP to save our core neighborhoods while creating abundant affordable housing.

Welcome to Opt-Out Falls!

Well, it was bound to happen, with ALL of our local government agencies in Sioux Falls going Bat Sh*t crazy over opt-outs, the name change is no surprise.

“I will admit I was a little surprised and kind of hurt when I found out the name change,” local philanthropist Lenny Spamford exclaimed, “I mean just how much does a no state income tax paying billionaire in SD have to give before he gets a town named after him?”

The governor, Donita Trump, didn’t seem too bothered by the change either, “I guess we kind of forced it on them, you know, by collecting over 30% of our sales tax revenue from the city and giving them nothing in return. It may not seem fair, well because it isn’t. I told you I would do things differently, and I’m delivering on that promise. Talk to you later, I have to get back to trucker hat shopping and hip-hop dance lessons.”

The latest to opt-out was the Minnerahrah County Commission today voting 6-0 for an opt-out (and 5 of them are Republicans! The shame!).

“The county, especially Sioux Falls has become the place to commit crimes, it’s like it’s trendy or something to drive from Freeman, or Menno or even Highmore to commit crimes in our county,” said county commissioner Gene Bart, “We really enjoy arresting people here and putting them in the endless cycle of the criminal justice system. Heck, just yesterday we arrested someone for looking at the Arc of Dreams the wrong way, on top of that we even put a guy away for trying to burn the newly sodded grass at the Levitt with a magnifying glass. Lawn crimes, just another mole we are trying to whack! Building collapses, not so much.”

Of course nothing gives the Sioux Falls School District more jollies than an opt-out. Superintendent Baron Von Maulher said, “We were getting such a kick out of it, I banned joke books from the IPC. Whenever I see anyone down and out around the offices, I just yell ‘OPT-OUT’ and the whole place breaks out in laughter. Of course, the finance department does get a little trepidation, because they have to ‘count’ (wink, wink) the votes. I always tell them they can do that with their hands tied behind their back and blindfolded. Worked in the school bond election.”

I asked Baron what the opt-out schedule looked like for the school district over the next 5-10 years.

“Well, since Pierre really doesn’t care how much we raise taxes, we figured we would push the envelope a bit,” Von Maulher replied, “We are going to try 6-12 opt-outs per year through the board, and if the people whine about having a choice, we will hold an election, but this time there will be only ONE super precinct, and it will be in my office.”

The city council is also infamous for raising property taxes. In fact, I don’t think a city council has voted down an increase in over 15 years.

City Council Vice Chair, and RS5 self-appointed leader, Ned Greitzert explained it like this, “When someone hands you lemons, you make lemonade, when the state hands us an opportunity to raise the tax rate, we make grenades, uh, I mean lemonade.”

Well, that would explain the potholes.

I asked him about all the other numerous increases in fees and taxes the city imposes on the citizens, and couldn’t they just take it a little easy?

“Funny you bring that up,” replied Greitzert, “The majority of the council, the ‘RS5’ as we like to call it, or the ‘He-Man Steely Hater’s Club’ is all about positivity and progressive measures to keep our city’s high level of quality of life at a maximum, that means if we are going to raise fees on water, sewer and other stuff, we have to keep that tradition of caring  and due diligence with property taxes. Wouldn’t it seem odd to you that your water bill went up last year but your property taxes didn’t? Where’s the consistency there? If you want inconsistency with taxes, just vote Steely for mayor. All she’ll do is bankrupt the city while giving taxpayers a break. The next thing you know, we will all be swimming in an outdoor pool in the middle of January.”

I didn’t have the heart to tell Ned that I didn’t know how to swim, especially under ice.

Some question why all the local entities have to constantly raise our tax rates when valuations have had record growth over the past 6 years?

Mayor TenBibleverses’ Chief of Staff took a stab at the question, “I call it the candy syndrome, something I kind of started when I worked for that last crook, I mean, mayor and quit ONLY after I was forced to write the largest TIF in city history for the Spamford Sports Complex,” said Jericho Speck, “We just started handing out TIFs, tax rebates, excusing tipping fees, ignored environmental laws, built millions in infrastructure for ice cream warehouses and just said, screw it, corporate welfare for whoever wants it. Don’t tell my pastor.”

I asked, “The Candy Syndrome?”

“Yeah,” Speck said “Whatever rich developer in town that needs a handout for NO reason at all, we just give it to them. No questions asked. No proof of economic impact. No proof of job growth, or even good paying jobs. We just make sure the request is signed and we approve it. The city clerk’s office handles petitions in a similar same way.”

I wondered if this haphazard way of giving tax cuts and tax incentives was driving up everyone else’s property taxes.

Speck responded, “What? Are you stupid? Does beer like foam collect at the bottom of Falls Park every Spring for the past 100 thousand years?! You certainly are the poster child for the large percentage of South Dakotans that don’t go to college. Ever think about taking up welding? There’s a program I could refer you to.”

I had more questions, but I had to get back to my call center job, my 8.5 minute break was over.

While this was satire, some of the sh*t is true, mostly everything but the fake names.