Click to enlarge (entire doc: end-of-year-rev)
As you can see, sales tax revenue was down in growth in 2016, and 2017 isn’t probably looking much better.
Why is this? Not sure, I am certainly not an economics major, but what seems odd is that while we have grown over 3,000 people over the past year, our tax growth hasn’t been there.
As you know, there are some factors that are obvious, like low unemployment (under employment) and low paying jobs. Also the growth in shelters and food banks is a pretty obvious sign. Another thing that I think is really dipping into the sales tax growth is the lack of affordable housing (it is really at a crisis level like our growing violent crime rate). I think people are spending way to much on housing and essentials and not purchasing other goods.
Ouch. And I saw that January ’17 ended at only 2.5% over last year. Not good news at all. I guess I see why the city didn’t want to lock itself into higher COLAs during the recent contract negotiations. That’s a tough outlook.
Certainly it’s all because we forced poor Chuck to close down his buttrock palace.
The collapsing Ag economy in this state doesn’t help either. If farmers have less left in their pockets at the end of the day, then they are less lucky to go to the big town to spend some of their discretionary income on things –
and an Ag economy, I might add, which will be further strained by the Trump economics of protectionism, which will make it harder for farmers in the future to export their commodities and put more money into their pockets to spend in Sioux Falls and other midwestern cities and towns.
Welcome to the Age of Trump or what Bannon calls “Economic Nationalism.” It might sound good at first, until you realize that any smart capitalist can only exist if they can find expanding markets and not just dwell in the collapsing ones..
This new reality under Trump also speaks to how his supporters, especially the working poor and middle class who supported him, are the ones most likely to suffer from the economics of Trump – an economic strategy, which will destroy opportunity and economic survivability for many…..
And to think we have a civic leader who now embraces the politics of Trump as a “Johnny come lately”……. (?)
Expect significant sales tax loss before the end of the year. Congress has approved all veterans access to military tax free retail both online and on base. Prices are already 25% less but there’s also no sales tax. Veterans are about 20% of the population and few will be buying commercially. JC Penny announced today it’ll close 150 stores. Others (ie Macy’s , Sears) are closing stores. I’m sure stores here will close. In the future, city revenue may have to come from other than sales tax. One good thing is foolish Huether style projects are over. It would be a good idea to halt the City Administration Building project so the city can be sure to make present bond payments.
Huether will leave the city broke. Veto That!
how can sales tax growth possibly be down in mike huether’s boomtown? it’s impossible.
Just received my property assessment post card,,, rose another 13,000. Last year was 9,000,, 22,000 increase in two years… So my taxes rose, increases my monthly payments, Single guy trying to keep his house, But the educated idiots (arrogant mayor included) don’t think of the limited budget of single income or people who depend on their social security checks just to survive.. I have no choice but to move,, Good riddance..
For those who promoted our city financed Events Center, indoor cement pond, indoor tennis courts and other questionable investments I ask the question “When the money leaves town via construction costs or ticket sales, when do we run out of cash?”
We now have marketing hucksters promoting their latest in service economy schemes, building palaces to play not able to bring people in from more than a few miles. So these dollars formerly spent in our retail, auto dealers or property are now leaving Sioux Falls and South Dakota to never be seen again.
An Events Center taking in $50 million in ticket sales may have striped our area of $350 million in economic impact.
The way money works to grow the economy is simple, bring in fresh money from the world through sales, create production, employee people to make the products and reap the rewards of building a community. These fresh dollars brought in would turnover economic power up to 7 times in economic impact. In other words, a new fresh dollar could do $7.00 in economic activity. This type of planning is not a boom town mentality. This formula worked for 140 years in Sioux Falls and South Dakota to keep our area out of the worst of the economic ups and especially downs. We have sacrificed our economic security to let a few strip the cash out of the community.
At what point do we find a way to grow our economy or do we all just give all our cash to Jason Aldean every couple of months?
https://www.youtube.com/watch?v=lDSt3zn090Y
As far as cars .I will go to Omaha to get mine.
I plan on living my life without giving Jason Aldean a dollar.
Rick & Moses, property and car tax goes to the county. They need the money and manage their meager budget well. The city budget is four times the county. They waste it on foolish overpriced no competitive bid projects. The city relies on commercial sales tax. Less revenue can keep them in check until we can elect a new (real) businessman mayor who will manage debt/spending and deliver public services instead of going to parties at his EC Box, the toga bathhouse, or his private publicly funded restricted gentry indoor tennis social club.
CNBC reported today that inline sales are up 34%. Their terminology is ‘Click Replacing Brick’. One must assume online is replacing local sales. It’s cheaper and (mostly) no sales tax. The city has a serious revenue problem. They’ll be sending out the code enforcer to hold your feet shaking you upside down for coin. I hope they don’t resort to robbing casinos to make payroll.