New postcard reinforces message on Jon Hansen being complicit in sales tax increase. And it is a sales tax increase.

From today’s mail, the Dusty Johnson campaign continues to play pin the tax increase on the donkey, with Jon Hansen joining the debate as Dusty for Governor points out Hansen authored the bill that captured the statewide sales tax hike.

Obviously this irks the Rhoden campaign, as they took to social media earlier today to claim they didn’t raise taxes..

(insert eyeroll here). The Governor’s team is really splitting hairs on this one, as yes, he proposed the measure (with Hansen) and signed the bill, which has new sales taxes as a component to let counties use them to offset property taxes, as well as allowing cities to get into the sales tax hike game themselves.

No matter how you slice it, sales taxes are going to be going up.  In fact, under the Governor’s post, someone linked a post I was going to refer to as an independent opinion on the whole thing:

Two of the laws use revenue from a higher state sales tax rate and an optional county sales tax to reduce property taxes for homeowners. The third creates a sales tax that cities can use temporarily to pay for special projects such as building an arena.

One of Gov. Larry Rhoden’s three opponents for the Republican nomination for governor is U.S. Rep. Dusty Johnson, who has said the new laws will raise the maximum sales tax rate to 10%.

During a recent press conference, Rhoden said that figure is “fabricated.”

and..

when I go to Pierre in the future, the taxes on my hotel room could be 10.5%, consisting of:

  • The 4.5% state sales tax.
  • A 2% city sales tax.
  • The 1.5% tourism tax.
  • A 1% city bed, board and booze tax.
  • A 1% city special projects tax.
  • And a 0.5% county sales tax.

and..

All of which is to say that when you’re looking for truth in politics, ignore the rhetoric and check the receipts.

Read the entire story here.

Whether anyone involved in the passage of the sales tax increase plan cares to admit it, sales taxes are going up, some will offset property taxes, and the rest will go into government coffers at some level.

That’s not a decrease in sales taxes.  At all.

30 thoughts on “New postcard reinforces message on Jon Hansen being complicit in sales tax increase. And it is a sales tax increase.”

  1. The “high” property taxes canard may be one of the biggest miscalculations in recent South Dakota political history. The rich people whined about property taxes, then expected poor folks to pay for their relief. The governor and legislative leaders took the bait. Say what you will about Dusty, but he figured this out while Hansen and Rhoden continue to keep digging their holes deeper.

      1. The sunset clause was up this year, Dusty didn’t vote on that. Jon Hansen and Larry Rhoden did. I believe Dusty‘s plan was if they let it sunset, he would use the funding specifically for property tax relief. On another note, Jon Hansen and Larry Rhoden raised the sales taxes.

      2. You can say “Dusty pitched the same plan” all you want – Dusty didn’t enact this tax swap, Rhoden and Hansen did.

  2. Sales tax is going up so that property taxes go down. When people realize that, it becomes evident that Dusty is telling half the story.

      1. So by this logic then, prior to this the property owners were carrying renters and other non-property owners.

          1. Pat’s absolutely right. Landlords aren’t losing money on their rentals. They’re passing the property tax on to the renters. If property tax does go down, I bet you my monthly beer budget that they don’t lower the rent. So, renters will be stuck paying the same rent but with getting hit with higher sales tax every time they try to buy groceries. The ones who will really benefit are the landlords. Revenue stays the same, costs go down, meaning profits rise.

            1. The tax proposals discussed in the past session were NEVER about commercial but rather how owner-occupied could get relief. Apartments are commercial.

  3. Anybody with a plan for property tax relief has a different revenue stream coming from somewhere to replace or reduce it. It might be an external tax. It might be a tourist tax. Possibly a receipt tax. Maybe even an income tax?
    Every candidate has said that everywhere they go, people are talking about property tax.
    What’s the best plan?

      1. Yes, I don’t agree with the tax shift because I think the property tax issue is completely overblown.

        I’m not calling Pat’s comments disingenuous. I’m calling Dusty’s attack ad disingenuous because he would have done the same thing if he was in Rhoden’s position.

        1. To be fair, this whole thing is being marketed as a tax cut— which it is not. Dusty attacking that statement is fair game, even if he would do the same thing. Additionally, Dusty didn’t say he would raise taxes. He said that a tax that was set to sunset would pay for it. Those are two different things.

        2. Jake, you and your dad have Dusty derangement syndrome. One of the three is not the same as three increases in taxes. It’s like saying buying a car, a boat, and a house in the same year is the same thing as just buying the car. Math ain’t mathin for you.

        3. Jake, you are full of it.

          Dusty admitted in the debates he was okay with 1. He is not okay with 3.

          3 vs 1 is a major and legitimate policy difference.

  4. Hansen said everything I needed to hear at the last debate. Jon Hansen….”On day one I will begin issuing scholarships to students attending Private Schools.” Moderator. “ Will this these be tax payer funded scholarships?” Hansen. “yes.” Not sure how the tax payers are gonna afford this? But, hey, if my 6 kids were going to Dell Rapids/St Mary’s I would probably be looking for some tax payer chedda.

    1. I’m so glad someone else caught that! I’m amazed Dusty hasn’t hit on that. There are a lot of retirees living on a fixed income that can barely afford to stay in their homes. They don’t have kids to benefit from those taxpayer-funded scholarships, but they’ll have to pay for them!

  5. The .03% tax increase was going to go in effect no matter what so Rhoden really didn’t raise a new tax there. The other 2 taxes do not go in effect unless the cities or counties proper elect to add them on so in reality they are not being charged unless the local governments vote to enforce them. So, as of right now there is only a .03% tax increase, the other .5 and 1.5% increases are up to each individual municapalities. Maybe Dusty has this wrong.

  6. Well I have to say. Getting some property tax relief instead of the government just spending more is something I sort of like. Plus there’s a lot of tourists who chip in for that sales tax. Now what I don’t like is this county option tax. It’s really not a fair deal. Think about how much sales tax some of the big counties generate vs. many of us in small counties. We’ll go to Sioux Falls and pay the county tax and then return home to our small town where we aren’t getting the relief from those sales tax dollars. And it didn’t solve any county problems – it was authority to swap funding sources and that’s about it. That’s weak policy and leadership.

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