We don’t need an increase in Sales Taxes

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There was a poll released over the weekend on Stormland TV that most people support increasing the sales tax for three months in the summer to increase teacher pay. They feel that tourists will mostly be paying the tax.

Poppycock.

First off, while I do think our teachers deserve better pay, I have often felt their pay is inline with what other South Dakotans make, in other words, we all make crappy wages.

Secondly, taxing food and other necessities is the wrong way to go about paying teachers. We need to find ways to reduce sales taxes, not increase them. They are regressive and a poor way to fund education.

Thirdly, the state has the money to give school districts in reserves, they just refuse to, this is a legislative issue, not a funding issue.

As for tapping into tourism to raise teacher pay, I think that is a great idea. How about we set a corporate tax on seasonal tourism businesses? Or how about we have a state tax fee on hotel rooms during the summer? If we truly want tourism to pay for the pay increase, then lets direct the taxes AT tourism?

Once again another stupid idea from Pierre and the minions follow suit.

OUTRAGEOUS!

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It is the only word I can use to describe the Mayor’s recent proposal;

One thing that sparked Mayor Huether’s interest was a penny sales tax that brings in additional revenue.

“Now, you need voter approval of course. It needs to be for a specific project. And yes, there has to be an end date in terms of when this funding or sales tax would stop,” Huether said.

Williston recently completed a sales tax increase that raised money for parks and $70 Million for a new recreation center.

Williston is now working with the state to create a new sales tax that would be split between the city and county. Something that Huether believes could benefit our area as well.

“I thought that was very intriguing. You’re hearing from the folks here in Minnehaha County how they’re burdened with the boom town of Sioux Falls. The city is growing and flourishing, doing quite well. And you’ve got the county of course that has to take care of some of the social needs, some of the social ills that come along with that growth,” Huether said.

We need to raise taxes in Sioux Falls!?

Are you f’ing kidding me?!

The problem with the county’s budget has NOTHING to do with revenue stream, it has to do with state law. We don’t need to raise sales taxes to fund them, we need to change state law so the 2nd penny, or at least alcohol taxes can be shared with them.

There’s a history lesson here folks. When the 2nd penny was initially introduced, it was for roads and was only supposed to be used for a limited time. That ship sailed, it is still here and it is used on everything from pickleball courts to dog parks. What’s more important to you? A fair and well managed county judicial system or pickleball?

Let’s also look at when they raised the 2nd penny to .08 six years ago. Supposed to go towards arterial roads, that plan has been a bust and in the meantime the city has collected around $30 million dollars in which they have just tucked away or used on other projects. Which is fine, but the intent of the increase was based on a bald-faced lie. What I am saying is the city doesn’t exactly have a very good track record when it comes to following through with it’s promises.

Also, take into account the city changed water/sewer over to enterprise funds. This gave them an excuse to raise our rates so they could fix infrastructure. Guess what? The 2nd Penny CIP money is supposed to be used for that, there is NO reason they had to raise our rates. The problem is the money  is being spent on bond commitments and entertainment so the city had to find infrastructure money someplace else. Raise Rates (taxes).

Make no mistake, this city is FLUSH in extra money, we could easily give the county 25% of our 2nd penny, and wouldn’t even scratch us.

Like I said above it is time for a change in law, not a sales tax increase. Not to mention sales taxes have proven to be the most regressive form of taxation in the nation.

It has to be one of the most selfish, ignoramus things this mayor has EVER suggested, he should be ashamed of even suggesting it.

City Government Time Machine; Platting Fee Boondoggle, 9/15/08

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Last night at the regular city council meeting a citizen brought up the failure of the platting fee idea to raise money for arterial roads, and he ultimately said ‘It should be repealed’.

I couldn’t agree more, it has been a complete failure, the plan that is.

In reality when the plan was proposed on September 15, 2008 (watch the meeting here).

It may have sounded good. It was simple, they would raise the 2nd penny tax to a full penny to help pay for arterial roads. The second part of the plan was what made it attractive. While raising the penny would help pay for 40% of the arterial roads, the developers would chip in 60% in platting fees.

That HAS not occurred. In fact they haven’t even come close to probably 4-5%. And while over the past 6 years the citizen taxpayers were putting in their share, the developers have contributed very little. Heck even a few years ago, a developer complained at a council meeting that the city wasn’t holding up their end of the deal by not building enough arterial roads like they promised. This developer was told, and rightly so, once the developers hold up their part of the deal the city would chip in.

When ever this is brought up (the terms we were sold) the developers have all kinds of excuses;

• The economy took a dump

(at the meeting that night, one proponent brought up the economy tanking, in fact that day, the dow dropped a record amount. The economy downturn was ALL over the news, but somehow SF developers thought they were immune. Ask them today about that immunity)

• They claimed they never said they would put in 60%

(over the past six years I have heard this LIE. Repeatedly during the above meeting the proponents said over and over again they would put in 60%. There was even a taxpayer funded website the city put up called movingsiouxfallsforward.org that claimed this amount.

• Public Works Director, Mark Cotter even repeated the plan

(He told Staggers in the meeting (1:06) that the plan was that the CIP would put in $35 million, the 2nd penny raise would put in $20 million and the developers would put in $30 million over the following 6 years. That has not even been a reality, not even close.

• As one opponent points out during testimony, there was nothing in the proposal to ‘legally bind’ the developers to put in what they promised. Nothing.

• And now that the economy has turned around and building is booming in Sioux Falls, will developers give us back pay on these platting fees to at least match what taxpayers had to put in (during an economic downturn) Of course not, just more excuses.

• The vote went down 4-4 with Munson breaking the tie and voting for the increase. Councilors Staggers, Costello, Beninga, Anderson voted against the increase and Councilors Brown, Knudson, Litz and Jamison voted for the increase.

• Even though this plan did fail, and the developers haven’t put their fair share in over the last 6 years, it hasn’t stunted growth at all. Why? Because once again, the taxpayers of SF have been bailing out the developers.

Some ‘Other’ highlights of the meeting;

• Mayor Munson gaveling me at the beginning of the meeting during public testimony when I made the accusation that the ethics commission were puppets for the administration. After he chews me out and tells me they are independent, I asked him, “But you appointed them? Correct?” He answered yes.

• Vernon Brown flipped his vote. When this first came up months earlier, Vern voted against it, this night he voted for it.

• Kermit points out that they weren’t following the proper state law to pass the platting fees (taxes) and should not even been voting on it.

• All the Proponents got to go first to testify, while the opponents had to wait almost 2 1/2 hours, instead of alternating speakers.

• Another funny moment was when Bill Peterson told Staggers that people weren’t flocking to move to Minot, ND to live anytime soon.

OTHER LINKS:

My KELO interview a year after the tax increase

DaCola Links

More TAXPAYER funded campaign materials for Huether

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IMG_0318 I got this extra special insert in my water bill yesterday. I guess they couldn’t give these tours AFTER the municipal election. My question is, are these inserts and tours being paid for out of the city’s general fund or from the EC bonds? Either way, doesn’t matter, still our money. Ironically, this will be the only time you will be able to walk through the EC’s doors without buying a ticket. Get the (partially) FREE gettin’ while it is good.

More property tax cuts for the rich in Sioux Falls

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cbk

The Baker House, formerly Scott Heidepriem’s residence (I believe this photo, to your far left, was taken while Scott still owned it).

I guess if you can’t get a TIF to fix up your mansion, you can always get a historical designation;

A 98-year-old house and two other buildings constructed in the 20th century in Sioux Falls have received eight-year property tax moratoriums to help with maintenance and rehabilitation (through the South Dakota State Historical Society).

A home in the McKennan Park Historic District also received a property tax moratorium. The Baker House at 503 E. 21st Street is a Tudor Revival style of architecture that needs replacements.

While I think the State Theatre could use it, I am struggling with a private residence. Not only is it a behemoth three-story mansion, but besides being worked on (for over a year now) it is also been added onto. I think it is great that someone is ‘fixing up’ a historical home (for the record my house is 125 years old and could use some repairs) but to ask for a property tax cut? Seriously?

The wealthy already enjoy low taxes in South Dakota and NO income tax, now when they buy (an already well-kept) mansion, they want a tax break?

Oh, I can hear it already, I’m a hypocrite because I posted in the past about TIF’s for cleaning up older homes in the central part of the city. Trust me, when I talk about fixing up homes in the core of the city, this place DOES NOT come to mind. I live about a mile from the home and walk past it weekly with the dog. When Scott owned it, it was well taken care of, and after he sold it, I noticed the new owners doing a massive rehab on it. Don’t believe me, just drive by. It is straight EAST of the Tennis courts at McKennan Park on 21st Street.

Wonder who the new owner knows on the Historical Society’s board of trustees 🙂