While we are bragging about building permits for last year, we need to take into account many of these projects pay NO or little in property taxes;
- Jefferson High School, $68.4 million
- Ben Reifel Middle School, $27.9 million
- The city of Sioux Falls pump station, $22.3 million
- Encompass Health Rehabilitation Hospital, $15.5 million
- Avera McKennan operating room renovation, $12 million
- Avera Human Performance Center, $11.7 million
- Avera Presentation Center, $7 million
As you can see almost $145 million in projects will pay little to no property taxes. So what is the economic impact? Higher taxes for the rest of us working stiffs.
See all of the stats HERE
Meanwhile, you can buy a lot in Hartford for $1 if you open a beer brewery bar. What’s property tax on $1? I suspect there will be more private enterprise neighboring but outside city limits. The oligarchs don’t have control of authoritarian control of smaller cities. Sales tax is one percent less. Without TIF interference and competition, it’s possible to make a profit somewhere outside city limits.
so we shouldn’t educate kids or take care of those with medical needs? I am pretty sure that each of these facilities needs numerous employees- many of them well paid positions. These people and their families will buy homes (thus adding to the real property base) or rent apartments, shop in our grocery stores, eat at our dining establishments, etc, adding to the sales tax. Many of the new employees may have working spouses who do work in new, taxable work places.
MJ, you are exactly right. My point is you can’t brag about near record building permits when almost $100 million of that is coming directly out of our pockets (plus interest). The building permits should be broken down into categories;
• Private (projects that actually have 100% valuation after completed.)
• Private that receive tax abatements, BIDS and TIFs (don’t have 100% valuation)
• Non-profits (no tax valuation)
• Public (City, County and School projects).
“Could someone please explain to me why Avera needs some waterfalls, which are not taxed?”