Senate Bill 96: Is this the part where we’re supposed to start cheering about creating a new tax?
I know I’m on the opposite side of this from a number of people whose judgement I trust and are more often in agreement than disagreement.
But, after last week’s passage of Senate bill 96 as part of the package of relief for property tax, I can’t help but give some attention to that troubling little thought in the back of my mind that asks “Is this the part where we’re supposed to start cheering about creating a new tax?
Of all the testimony I caught in the debate, State Representative Will Mortenson said something that added to that doubt:
Republican Rep. Will Mortenson of Pierre called for SB 96’s defeat on Thursday. “Take from the poor, give to the rich,” Mortenson said, summarizing his perspective of what’s going to happen. He argued that people from rural counties would be subsidizing another county’s property-tax relief when they shop in regional centers. He also said that people with the most-expensive homes would see the most relief.
Those in regional hubs will benefit greatly from the new County Sales Tax. And don’t let anyone’s creative word-smithing disavow that it’s anything but a new sales tax where we had none before:
Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 10:
A county may impose a gross receipts tax not to exceed one-half percent on the gross receipts of all sales of tangible personal property, any product transferred electronically, and services, that are taxable pursuant to chapters 10-45 and 10-46 in the county. The tax must conform in all respects to the state sales and use tax, with the exception of the tax rate.
For purposes of this chapter, “gross receipts” have the same meaning as defined and used in chapter 10-45.
5 or 10 years ago, a legislator – most certainly a Republican legislator – would avoid a whisper of a new tax like they’d avoid a plague rat, for fear of being tarred and feathered in mailings over the notion. Doubly so in an election year. But it’s 2026. And many want to be seen doing something about property taxes. So, this is what they came up with.
I mean, don’t get me wrong. According to the interactive chart that was going around, while those in Corson County are only seeing a 9% reduction…
..my residence in a regional hub predicts I could see a 23% reduction in my property tax:
I probably shouldn’t complain that my property taxes are going to be subsidized on the backs of the thousands the SDSU students spending money in the community. But I can’t help but think we shouldn’t strive for a better way.
What is that better way? One that South Dakota Republicans used to embrace. Growth and new jobs. Taking advantage of new opportunities.
It might almost seem like an alien concept with the wave of NIMBY populists that have taken the lead at the moment. At this point, South Dakota has made sure the country knows that we’re closed for business on energy growth, and many in the legislature are doing their damndest to block the wave of growth in technology and data centers from ever darkening our state’s doorsteps. There are even those who have made it their legislative mission to stop local development in it’s tracks through putting up hard roadblocks to tax increment financing.
That’s not a way to grow our economy. It just means that ten years from now when everyone complains that their taxes are back where they used to be (and we still have this new sales tax) that they will look inward again to once again shuffle around the chairs on the deck of the Titanic. That’s not a solution. That’s a coping mechanism to claim to voters that you did something.
If you want natural growth and expansion of the tax base, we need to be creative as a state and have a business environment that makes people want to establish businesses in South Dakota and to invest here. We want these guys and the state NEEDS the investment.
Or not. And we can just wait for the next new sales tax, so we can congratulate ourselves and tell voters that “we solved the problem.”
Whether it’s a trip to the pharmacy or a hospital stay, accessing health care can be complicated and costly. And that is especially true for rural South Dakota, where even getting to a health care provider can be challenging. Republicans are committed to making health care more affordable and accessible, which is why we’ve taken up a number of measures to lower costs and increase access to care, especially in rural communities.
