Before 10:00am tomorrow, please contact these Senators urging them NOT to let cities have more sales tax. Ask them to OPPOSE SB135.

This bill allows cities to add another 1% city sales tax, for special projects with a vote of the people. So few people vote in city elections, that it would be easy for people behind special projects to get their supporters out and overwhelm a city election, raising the most regressive tax we have.
• This would be a 50% increase in sales tax revenue for a city! (the current 2%  to 3%)
• Sales tax is the most regressive tax we have, meaning the lower-incomes are burdened more, and upper incomes are affected less.
• Sales tax takes food off tables in South Dakota. In families with limited budgets, food is often the flexible part of the budget, and the tax takes food away. Think about how much 6% tax takes out of a $20 bill. (Many low-income household do NOT get food stamps. Many others receive only partial allotments of food stamps and must buy some food with cash.)
• Already at 6% (4% state + 2% city) the total sales tax you pay on food over a year is equivalent to 3 weeks worth of food. A new 1% would add another half a week to that problem.   (.07×52 weeks = 3.65 weeks)
• At one time SD had a strict limit for city sales tax on groceries. But this limit was taken off, and over the past decade SD cities have raised their tax on food from 1% to 2%. By doing this, they already received an increase in sales tax revenue that they continue to reap every year.
(FYI- Background info: Under the “streamlining rules,” city sales tax may not be lower on some things than other things. Thus, we cannot go back to the previous 1% limit on food for cities. However, states are allowed to have lower rates on food and utilities, even zero, which we hope will be accomplished with HB1193.)
• • Many utilities are taxed. (You can see this on your monthly bills.) Cities receive more revenue every time these utility rates go up, as well as when food prices rise.
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Senate State Affairs committee votes on this tomorrow (Wednesday Feb.4)
Here are their email addresses. Write them individually, not all in one email.
Or, call and leave a message tomorrow morning before 10:00 am

605-773-3821 for senators. You can ask that it be delivered to 2 senators.

By l3wis

6 thoughts on “OPPOSE SB135 – Giving cities the power to raise taxes”
  1. Well someone gave power to the bank in town I am from the ability to charge me 1% without prior notification for moving cash around in amounts of more than $2500.
    I am a bidness man I pays my bills with money!Hope no one gets hurt.
    When I signed for that account my amounts assured me
    no fees.Seems there is a shortage of greenbacks according to the sign at the teller.
    I find this hard to understand since everyone in front of me in line ANYWHERE is using a .gov benny card.
    In Art and Labor (and demanding a cash discount)

    OBG

  2. I go out of my way not to buy in Sioux Falls because city government is so corrupt. It hurt yesterday that Amazon is buying Radio Shack. With local presence, they must charge sales tax. I go into Minnesota often and stop in Worthington for food & clothing (no sales tax). Whenever possible I buy gas outside city limits.

    There’s a little tax savings but it’s more important for me to know I’m not supporting the city.

  3. I would be shopping in Minnesota if I had the transportation and if my health allowed me to. I haven’t been out of my apartment since the middle of October.

  4. Technically, if you buy anything out of state that would be taxed in South Dakota, you have to pay voluntary use tax on it. Either internet or physically. Just sayin’

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