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The newest Event Center Task Force member, Boris

I really think the reason the Event Center task force is pushing for the bigger 18,000 seat facility isn’t because they think we need it, but because it is an excuse to raise our retail taxes by a penny.

Case in point,  I think it was task force member Terry Baloun (?) who said, (paraphrasing) “If we were to use the the Bed and Booze tax we are looking at a much smaller facility.”

and as I mentioned earlier last week, councilor Quen Be De Knudson said at a joint county/council meeting, (paraphrasing) “I can’t wait to raise taxes to 7 cents so we can build all kinds of nice things for this city.”

These two statements have really gotten me thinking. They know they can build a smaller facility DT with a bed and booze tax, but it would require a retail tax increase (which would raise an estimated $100 million a year) to build a monstrosity at the convention center location and rebuild Howard Wood. 

Don’t be fooled by the ‘NEED’ for an 18,000 seat facility, this is about increasing our taxes by a penny. That tax will never, ever go away, the De Knudsons of the world will just find other things to spend that $100 million on each year.

It really surprises me that a person who claims to be an advocate for immigrants and the less fortunate supports taxing food to build an entertainment facility. What are you spiking the honey with these days De?

Hudson’s KRRO rant today is right on, especially the non-logic in building a 20,000 seat facility;

The future of music lies in the smaller venues, gathering the niches of every genre. This is why instead of building an unused monstrosity, we need to make better use of the venues we already have. Pressure those at the Pavillion to book outside of the MOR mode that plagues that building. Acknowledge and cultivate the role of establishments such as Nutty’s for rock, rap, and indie rock. Let’s turn an empty warehouse or two into facilities for live music. The future is not monster U2 or G&R stadium spectacles; the future is a sweaty room with 1000 like-minded friends, and I’ll believe that until somebody on the task force can convince me otherwise.

Listen to Scott’s rant today at 8 AM on the KRRO, 103.7 FM.

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No surprise that the special interest brownosers at the Gargoyle support the event center funding idea, but what is even more idiotic is some of the obvious points they make in their editorial;

Where will Sioux Falls get the money to build an events center any way?

History shows that having that answer upfront is critical to any chance of local voters giving their approval to build.

No shit Sherlock. That has been my point all along, approve a funding source first then start hammering out the details. It’s easier to plan a facility when you know what kind of revenue you are going to have to build it. I think the Task Force got it assbackwards. First off, voters could vote down the tax increase, which I think they will. Remember they voted down a tax increase of only .02 cents to build the rec center. They are freaking crazy if they think Sioux Falls voters will approve a full cent in a down economy to build an entertainment facility that most voters won’t even be able to attend.

The idea is to include the type of provisions – primarily a sunset clause – needed to garner support.

A sunset clause? It should be called a bullshit clause. Don’t be fooled by this. TAXES NEVER GO DOWN. NEVER. Once the city pays off the Event center, they will just find other things to spend the money on, upgrades, etc, etc. This will be the sticking argument opponents need to point out.

There’s a window of opportunity here.

Sioux Falls needs its leaders to make sure the city doesn’t miss it.

But we will miss it because of this stupid funding idea. That’s what bothers me the most. I support a new EC and expanded convention center, it will do wonders for our economy, I don’t deny that. But why come this far just to have voters reject the idea? Which I think they will overwhelmingly. They need to switch gears immediately and support a B & B tax instead and take that to the legislature. Voters would support it and it is funding source that can stay in place.

Is anybody on the Task Force or at the Gargoyle Leader using their brains? One wonders.

This letter says it all;

As a resident of Sioux Falls, I would like to see a new events center. I’d rather spend my money in Sioux Falls than travel to Sioux City, Omaha, Fargo or the Twin Cities for concerts, the circus, etc.

But as a citizen who is concerned about the recession and people in lower-income brackets, I don’t want essentials such as food taxed. Sioux City did not tax food to build the Tyson Events Center. Rapid City did not tax food to build its events center.

I want Sioux Falls to move forward but not on the backs of those who can’t afford it. I propose a tax such as a hotel/restaurant/booze tax or a tax on political advertising in place of raising the sales tax.

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They still keep pushing this retail tax increase to build the EC, but even if it passes the legislature, it won’t pass the smell test with voters;

The road to a new events center in Sioux Falls will need to go through Pierre before the city has money to build a facility, a task force studying the issue has decided.

Sioux Falls officials are working with their counterparts in other municipalities and officials with the South Dakota Municipal League on legislation to be introduced in next year’s session. The legislation would enable local governments to raise sales taxes by up to 1 percent to finance special projects. The proposal probably will include a sunset provision, meaning the tax would end once the project has been paid off.

Sure, but I have a funny feeling after the EC is paid off, the city will continue to find things to build and maintain with the tax. It’s kinda hard giving up $100 million a year when you are used to it. Don’t believe the bull, that tax will NEVER GO AWAY! That is why the BBB tax makes the most sense, we don’t have to get rid of it and we can pay for the facility over time.

BREAD FOR THE WORLD puts in their two cents (no pun intended);

Note the article in today’s Argus about the proposal for funding an event center. Unfortunately, the task force is asking the legislature to let cities raise sales tax, our most regressive tax. Hard to believe — especially in tough times.

The increase, $100 million a year in Sioux Falls, would not come only from those who can afford it. Much would come from those who don’t have money to spare. 36.8% of Sioux Falls children eat free or reduced lunch. [May’09]

When costs go up, families have less for the flexible parts of the budget, which food is. And food would cost more too, because sales tax in South Dakota applies to food.

There is an alternative: “bed, board & booze tax” (BBB), which would take a little longer to raise the funds, but would not affect life’s basic necessities.

It is simply unconscionable to raise the tax on necessities and ask hungry children to pay for an event center, no matter how nice an event center or other public amenity would be.

You can vote in TODAY’S ARGUS POLL at http://www.argusleader.com
The question: Should South Dakota allow cities such as Sioux Falls to charge a tax to help fund an events center? (AS OF 11:30 AM 62% WERE OPPOSED TO THE INCREASE)

More important, letters to the Argus Leader and papers all over the state are needed, so all state legislators can learn sales tax is the wrong idea for a way to fund new public projects. Short, simple, to-the-point letters don’t take long to write and are very helpful.

Supplementary info:
—> Ottertail just raised electric bills 11%. Xcel wants to raise theirs 10-12%. (These bill have sales tax.)
—> One percent more sales tax is a 16.7% increase in the sales tax. How much are paychecks going up?
—> Other states have been reducing or ending their food tax, not raising it! Only 14 states still tax groceries, half of which have a lower rate on food.
—> Other cities did not use any tax on food to build their event centers: Food was not taxed in Fargo, DesMoines, Sioux City or Omaha, when event centers were built there. (Food is still not taxed in those places.) When the civic center was built in Rapid City, the RC city sales tax was not on food.
—>  Food stamps (now called SNAP) help immensely, and are not taxed. But many low-income people do not get them, and middle-income people often struggle to cover expenses too.
—> South Dakota’s food tax rebate program reaches only a tiny fraction of low-income South Dakotans and no middle-income households.

A tax that worsens the struggle for life’s necessities is not an appropriate source of funds for a place of entertainment.

Please help oppose this now, before it gets to the legislature, before momentum builds, in hopes they will take a different course, one more sensitive to the real life situations of South Dakotans.