This failed for a reason, and it wasn’t the political power machine that killed it, it was many people with common sense behind the scenes lobbying against higher regressive taxes that just burden the working poor. It is counterproductive to fund projects on the backs of people paying higher taxes on food and utilities. If we really want to tap a hidden tax source it would be an income tax on corporations and high wage earners. Other then that, it astonishes me that the mayor of SF would support this, a person who is often telling us we are swimming in money. A little history lesson for Mr. Whitney (who apparently has no clue what has been going on in city politics for the past 10 years) We recently switched our water/sewer over to ‘enterprise funds’ this was a way to direct our fees into fixing infrastructure, which makes sense, though I think it was done to justify higher rates and to free up CIP money for ‘play things’. We don’t need higher sales taxes in Sioux Falls, especially under an administration that gets giddy every time they open the city checkbook. The next time the city needs extra money for NEEDED infrastructure, I suggest they cut elitist indoor tennis centers named after our esteemed emperor instead of looking for more ways to screw the poor.
Of course, let’s look at Whitney’s version as to why this went down (am I the only one who doesn’t laugh at his satire pieces but think his serious columns are hilarious?)
Consider the plight of Senate Bill 135, a sales tax measure that appeared reasonable enough when first submitted by Republican state Sen. Corey Brown back in January.
Yes proposed by Mr. South Dakota ALEC himself. An organization that likes to have taxes paid by the working class, while corporations run free from taxation. I can almost guarantee Brown saw this as a way to protect his corporate interests.
Bolstered by the South Dakota Municipal League, the bill would have granted cities and towns the ability to impose up to a third penny of general sales tax — if approved by voters — to pay for capital expenditures such as land acquisition, street or bridge repair and other infrastructure projects.
And that is the major flaw with the legislation, it’s wording, infrastructure projects can mean anything from a bridge, a sewer pipe or an indoor pool.
“Voters had to approve it, it was specifically for infrastructure, there was a hard sunset on it and it could not be extended or renewed,” says Yvonne Taylor, executive director of the South Dakota Municipal League
The ‘Sunset Clause’ song and dance. We know how that rolls. Remember the 2nd penny implementation for roads? Well we don’t entirely spend it on roads anymore, just a portion of it. Or the ‘entertainment tax’ that was used to pay off the Washington Pavilion bonds. Well that was paid off, but we are still paying the tax. The sunset clause is a ruse, because as soon as the project is paid for, government will find another project to spend it on. History has shown this. Do you study history Yvonne?
Gov. Dennis Daugaard, for all his talk about local control, wasn’t thrilled with the idea of cities being able to address their own revenue issues, especially with his push for highway and bridge funding taking top priority in Pierre. If someone was going to raise taxes, it was going to be him.
Well, I’m not one to defend our tight wad governor, but it seems he was using common sense by pointing out raising taxes and fees for road repairs on a state level then allowing municipalities to also implement a tax increase at the same time wouldn’t sit well with taxpayers. It doesn’t take a genius to figure that out.
Deputy state revenue director David Wiest opposed SB135 in Senate committee, saying consumers already pay four cents on the dollar in state sales tax and that collecting more locally would push the burden too high.
“That’s not going to work for citizens in the state,” he told legislators. “They won’t permit it.”
And he is right. I haven’t talked to one single person who thought this was good legislation. The other flaw pointed out to me by my conservative friends was that it should take a 60% majority to approve a tax increase, this was NOT in the bill, and I believe that is why a lot of legislators didn’t like it.
Throwing out a scary number (especially one that could not possibly come to fruition and that Taylor of the Municipal League called “mind-boggling”) was gimmicky politics at best, but the tactic was repeated in op-ed pieces and voter outreach spearheaded by the state chapter of Americans for Prosperity.
It may have been ‘gimmicky’ but not to far from the truth. In fact if we raised the taxes by a penny just in Sioux Falls, it would be around a $50 million dollar tax increase. That’s not a gimmick, that is the truth.
“It’s no secret that Sioux Falls would have reaped the rewards of this legislation, but cities and towns all across the state were clamoring for its passage as well,” Huether said this week. “It was a full-court press for local control.”
Local control?! Let’s talk ‘gimmicks’. Besides the public approving such a regressive tax increase, that is where our ‘control’ would end. We have a city administration that is famous for handing out money to special interests with little public input. In fact, our mayor is so brazen about it, after cutting a $500,000 check to the Indoor Tennis Palace, he slaps his name on the building. Now that’s local control!
Those projects total an estimated $100 million in a city that has about $30 million a year to take care of all of its maintenance, reconstruction and extension efforts, city public works director Mark Cotter told state legislators. To use public bonds, the city would spend more than “$52 million in interest alone” over 20 years to pay for the work, he added.
$30 Million? What did I say earlier about the 2nd penny? The fact is we have been robbing it (CIP) for play things and bond payments on those play things. If we truly spend ALL of the 2nd penny on it’s true intent, we would be driving on streets of gold, and they would be paid for. Instead we consistently rob the cookie jar for entertaining ourselves. The money exists for these projects, make no mistake, but it takes an administration willing to make prudent decisions about infrastructure instead of worrying about what color the bathrooms will be at the Events Center (something I heard he was very involved in).
After the efforts made in Sioux Falls and the personal involvement of Huether to articulate the importance of the bill to the state’s largest city, those votes did not go unnoticed.
“Sioux Falls brought out the big guns to promote the passage of this critical bill,” Huether said. “Then to find out it was some of our very own legislative team that didn’t even let us enter the corral for the gunfight was very disheartening.”
Oh Yes Mike, it’s always about you, isn’t it? This bill was defeated because it just wasn’t fiscally responsible. Besides, what gun fight did you get into? Did you testify in Pierre on it’s behalf? I don’t recall hearing about that?
Darrin Smith, the city’s community development director, said that the bill’s defeat is a setback for Sioux Falls growth.
“I don’t think there’s any question that this will put significant economic development opportunities we have at risk,” Smith said. “This would have allowed us to invest even more in infrastructure to create more jobs and diversify our economy, but you can’t be successful if you’re afraid to lead, so we’ll do the best we can now.”
Wow! Darrin, did you just read what you said? If we were so afraid of risking economic development in Sioux Falls, why did we borrow $117 million for an Events Center? Or rob Federal levee paybacks to build an indoor pool? Or have $37 million in surplus accounts? I don’t think we are risking anything, except over extending ourselves on play things.
“I cheer for our governor more often than not, but this is one topic where I respectfully disagree,” Huether said. “I am not fighting against my governor, but rather fighting hard for South Dakotans, east of the Missouri and west. I know he is too.”
Mike, you cheer (and cry) for one person, and we know exactly who that is.
