From today’s Argus Leader website comes a story about the tax increase proposal no one is really talking much about… Until tonight, on the eve of the measure moving forward in the House, after narrowly passing the Senate.
“The key thing to remember is, we have a limited capacity in our overall sales tax system,” Wiest told legislators at a bill hearing Feb. 4. “We cannot have as a state a 15 percent sales tax when you combine state and local sales tax. That’s not going to work for citizens in the state. They won’t permit it.”
Still, governing bodies in 100 communities across the state have signed on in favor of the legislation. The Senate passed it 19-14 earlier this month. It now goes in front of the House Taxation Committee Thursday morning.
This new legislation would give community residents another option, said Yvonne Taylor, executive director of the South Dakota Municipal League. A property-tax opt out puts the burden only on local residents. Up to an additional third penny in sales tax captures anyone doing business in a community, she said.
Beyond that, governmental bodies decide on property tax opt outs, though their decisions can be referred to a vote. With this new legislation, a vote is mandatory.
Bob Riter, a lobbyist for the South Dakota chapter of the National Federation of Independent Businesses, believes SB 135 if passed could put state businesses at a competitive disadvantage, especially for those near neighboring states that have a lower sales tax structure.
How much would this increase taxes for South Dakotans? According to the note from Americans for Prosperity this evening, it bypasses the $100 million highway proposal that was labeled DOA for being the largest tax increase in state history, and does it better by another $50 million:
It’s the biggest tax increase you’ve probably never heard of.
The legislature is considering a bill that would allow cities to impose an additional 1-cent sales tax increase. If every city in South Dakota participated, it would mean more than $150 million in new taxes.
We Need You To Help Stop It
With all the debate on the highway funding bill, it seems almost no one is talking about this secret sales tax increase. We can’t let this bad tax policy get passed into law! The worst part? The bill was approved by the South Dakota Senate and is headed to the South Dakota House for a vote.
Send a letter to your legislator today: Tell them to vote NO on the sales tax increase!
Instead of finding new ways to let government raise taxes, lawmakers should be looking for ways to reduce the burden of government on taxpayers.
Thanks for all you do.
AFP South Dakota
If legislators rejected a tax package which would have cost taxpayers $100 million… Then why is a $150 Million tax proposal sliding through so quietly?
Or maybe not so quietly now that the cat is out of the bag.