State Funding

Sales taxes are regressive, and any effort to raise them will be met with massive opposition

I see Jodi is now becoming the Mayor’s cheerleader in trying to raise our sales taxes;

At the same time, before offering any incentive like that, we need to consider raising sales tax across the board if we’re going to continue to emphasize reducing property tax.

In the city of Sioux Falls alone, one penny of sales tax can generate almost $100 million each year. An option to capture that revenue, while at the same time pairing a sales tax holiday to provide relief during the year, seems worth exploring.

Our average of 6.11 percent, coming in at No. 36, is quite low, especially when you consider there’s no personal or corporate income tax to help fund government services.

She thinly veiled her support for a sales tax increase with a story about sales tax holidays. How about we put South Dakotans on a permanent sales tax holiday and implement an income tax. I did the math, and if you set it with certain income levels, 60% or more of South Dakotans wouldn’t pay a penny in income taxes. I have argued if we implemented a income tax on households and private business who make over $100K a year (with exemptions for children) and increased the assessments on commercial and ag properties for property taxes, we would have oodles of money for programs while eliminating the sales tax almost entirely. I would keep sales taxes on luxury items and items over a certain dollar value. Sales taxes on anything we need like medical, energy, food, clothing, etc., would be eliminated. Making poor people pay more in taxes so property owners can get a tax cut makes no sense and is defeating the purpose. I support a property tax cut, but other changes have to be implemented for it to work, and we don’t need to increase taxes on things we need, the government needs to budget differently and we need to go after the tax dollars where they are; RICH PEOPLE. But since they control this town and legislature it will never happen.

Did I just wake up from a 15 Year Coma?

Several years ago when Huether was running for Mayor I said something similar to this;

‘This is the problem when you have marketing people running city government’

I didn’t say that exactly, it was something like, “We don’t need salesman running our city.” Same premise. The initial quote comes recently from a SF legislator referring to our leadership in our fine city, specifically the mayor’s office. I have railed about this for 15 years, questioning why we need salesmen running our city. I guess some other ‘leaders’ in Sioux Falls are finally waking from their 15 year coma and realizing shucksters and carnival barkers have been running our city, and it is time for a change. Hopefully we will get a mayor this next time around who wants to actually GIVE BACK to the community instead always trying to sell us something we don’t want or need . . . and that is quite a list.

Mr. Kirby even weighs in on the topic;

I sometimes wonder if the Chamber of Commerce and development foundation focus a bit too much on growth and not enough on life quality and the right sort of growth.

I have been saying that for 20 years. Growth for Growth sakes will eventually bite you in the butt when the money tap runs out for the Developer Welfare Queens. That tap will run dry by the end of the year and won’t get shut back on for several more years. Maybe it is time city government focus on fixing up the current infrastructure instead of building canals on Veterans Parkway.

UPDATE: Anonymous Legislator drops the bomb on property taxes and developer greed

UPDATE: I was told by a former legislator that used to serve with this person, that the person who likely wrote this is Gary Moore.

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.

Sioux Falls School Board rips the State Legislature to shreds

This was fantastic. It was about time a local governing body told the public what they really think of our legislature. I have been following our legislature for 20 years, and they have always been morons, but over the past 5 years you almost wonder if the only people we elect are crazy and (extra) stupid? This happens because we don’t have open primaries, oh, and our Dem party is almost non-existent. (FF: 1:00:00)

Legislative Update

Advocates,

    The legislature is almost over, but a lot is still unsettled. This is a 3-day weekend. Please write some probing questions for your crackerbarrels and hang around afterward to speak with them personally.  

   And please send emails and/or make calls. During the session, you can call messages to 605-773-3821(senators) and 605-773-3851(rep’s).

   Committee members are listed at the bottom of this email.

— Medicaid, HJR5001 Medicaid on the Senate floor, Monday 2pm(1pm Mt). Oppose. Are they really willing to leave some SD’ans with no health coverage? Our lowest-income workers? Caretakers? People between jobs? Those whose health issues keep them from working? People with disabilities who are in the process of applying for disability?

— Childcare, HB1132 offers childcare workers assistance with paying for their own childcare. It could help address childcare worker shortage. in Senate Health & Human Services (maybe Tue)  Support.

—  Bathroom bill, HB1259 It would prohibit transgender people from using the communal facilities that match their gender identity, like restrooms and changing facilities, at South Dakota public schools. in Senate State Affairs, Monday 3pm(2pmMt). Oppose.

— SB172 rebuttable presumption of joint physical custody. It passed the Senate(22-13). Rather, we should stick with best interest of the child.  in House Judiciary maybe Wednesday. Oppose.   

— Guns on campus SB100, passed the senate. Next to House State Affairs (maybe Wednesday) Oppose.

— SB83, the penalty for ingestion. Rather than a felony, first offense would be misdemeanor with addiction treatment. 2nd offense: jail + treatment. 3rd offense: felony. It came out of committee without recommendation. Next on the House floor, maybe Tuesday. Support.

These are about our initiatives and referenda. OPPOSE them all. Could they please stop messing with our citizen rights to initiate measures for the ballot? These have passed their first house so they are awfully close to passing!

 HJR 5003 requires 60% for amendment to pass (takes away majority vote). in Senate State Affairs

— HB 1169 signatures from every district!  in Senate State Affairs

— HJR 5006 requires a two-year gap before citizens can try again on a defeated ballot measure. in Senate State Affairs

— HB 1184(moves a deadline taking away 3 months of prime signature time). in Senate State Affairs

— SB 91 requires 14-pt font for petitions,  in House State Affairs, Mon 7:45

— SB 92 subjects petition to prior review, in House State Affairs,  Mon 7:45

These three are for Appropriations committee:

— Save Libraries!

— Save SDPB!

— TANF: The state’s poorest children need a payment increase. To meet their very basic needs, payments at a third of poverty level are not enough. These children have a TANF reserve fund legislators could use for an increase. It’s the children’s money.

Now here are the committee members:

Here are the committees mentioned above for contacts:

House State Affairs has these rep’s: Jessica.Bahmuller@sdlegislature.govEric.Emery@sdlegislature.govSpencer.Gosch@sdlegislature.govJon.Hansen@sdlegislature.govErin.Healy@sdlegislature.govLes.Heinemann@sdlegislature.govGreg.Jamison@sdlegislature.govKarla.Lems@sdlegislature.govScott.Odenbach@sdlegislature.govMarty.Overweg@sdlegislature.govTim.Reisch@sdlegislature.govBrandei.Schaefbauer@sdlegislature.govBethany.Soye@sdlegislature.gov,

Senate State Affairs has these senators: Arch.Beal@sdlegislature.govRandy.Deibert@sdlegislature.govKevin.Jensen@sdlegislature.govChris.Karr@sdlegislature.govLiz.Larson@sdlegislature.govJim.Mehlhaff@sdlegislature.govCarl.Perry@sdlegislature.govSue.Peterson@sdlegislature.govTom.Pischke@sdlegislature.gov,

Senate Health & Human Services has these senators: Sydney.Davis@sdlegislature.gov, Tamara.Grove,@sdlegislature.govKevin.Jensen@sdlegislature.govCarl.Perry@sdlegislature.govTim.Reed@sdlegislature.govJamie.Smith@sdlegislature.govCurt.Voight@sdlegislature.gov,

House Judiciary has these rep’s: Mary.Fitzgerald@sdlegislature.govJohn.Hughes@sdlegislature.govJana.Hunt@sdlegislature.govDavid.Kull@sdlegislature.govCurt.Massie@sdlegislature.govWill.Mortenson@sdlegislature.govPeri.Pourier@sdlegislature.govRebecca.Reimer@sdlegislature.govTim.Reisch@sdlegislature.govMatt.Roby@sdlegislature.govBethany.Soye@sdlegislature.govMike.Stevens@sdlegislature.govTim.Walburg@sdlegislature.gov,

Appropriations has these reps: Mike.Derby@sdlegislature.gov,  Terri.Jorgenson@sdlegislature.gov,  Chris.Kassin@sdlegislature.gov,  Liz.May@sdlegislature.gov,  Scott.Moore@sdlegislature.govErik.Muckey@sdlegislature.gov,  Al.Novstrup@sdlegislature.govJohn.Sjaarda@sdlegislature.govJack.Kolbeck@sdlegislature.gov

    and these senators: John.Carley@sdlegislature.govRedDawn.Foster@sdlegislature.govTaffy.Howard@sdlegislature.govMark.Lapka@sdlegislature.govPaul.Miskimins@sdlegislature.gov, Ernie Otten <Ernie.Otten@sdlegislature.gov>, Glen Vilhauer <Glen.Vilhauer@sdlegislature.gov>, Mykala.Voita@sdlegislature.gov, Larry Zikmund <Larry.Zikmund@sdlegislature.gov>,

  Thanks for all your help. We sure don’t always win, but we need to be voices for what’s right and good.     

   The legislature will be over soon.

Thanks.