From KELOland, the Governor’s Task Force on Education recommended that sales tax is likely the best tool to raise funds needed for teacher’s salaries:
The task force recommends keeping the education funding the same at three percent or the rate of inflation, whichever is less. But it does call for an additional $75 million in revenue to raise teacher pay to an average of nearly $50,000 a year.
Daugaard was able to raise that same amount to pay for roads during last legislative session.
“It’s a two-thirds vote and the margins for road funding was very thin so we’ll see if there’s a will on behalf of the legislature. And I also have to feel as if there’s true reform being accomplished,” Daugaard said.
The task force provided ways for schools to control expenses and be more efficient, while suggesting that a good source of revenue for raising salaries will be through a hike in the state sales tax.
Read that here. And according to a report in the Argus Leader, retailers are not necessarily opposed:
Shawn Lyons, executive director of the South Dakota Retailers Association, said the group would be receptive to discussing a tax hike. The association represents about 4,000 retailers across the state.
“If we’re going to go down the path of looking at a sales tax increase, the conversation of property tax relief, especially for commercial retailers, is very important to us,” Lyons said.
Though he said retailers that sell more expensive products had reservations about accepting the increase. Lyons said many had expressed concerns about losing a competitive advantage to online merchants that might not be subject to the same taxes.
Read that here.
I’m not sure why they need to offset a tax they collect from others against one they pay themselves right now, but if I were lobbying on the tax, I’d try it too. And they are correct on the internet sales tax.
Quibbling over minutia aside, the most important thing is that if there is going to be a tax increase to fund education, it is important that everyone participate.
Not everyone pays property tax, but all South Dakota residents who consume or purchase goods pay sales tax. It’s what you might term “having some skin in the game.” And in the case of sales tax, everyone does.
The flip side of it, is that if we add a penny or a half penny, this is still going to be a massive tax increase. And as Tony Venhuizen, the Governor’s Chief of staff quipped in referring to what plan the administration prefers, “my favorite is whatever one the legislators will pass.” And he’s quite right.
In an election year, legislators are going to have to balance the demands of their constituents for improved salaries in education against people not wanting to pay more in taxes, and blaming legislators for any tax increase passed. There will certainly be districts on either side of that divide.
It may come down to a district by district vote, with the conservative anti-taxers versus the districts demanding increased teacher salaries.
What do you think? What district are you in, and where do you want your legislators to line up?