Sioux Falls Mayor Pau TenHaken to propose new sales tax for big ideas.

Similar to Republican State Senator Al Novstrup’s multi-year push to create new taxing authority to fund county projects, Sioux Falls Mayor Paul TenHaken is in the news today, similarly looking for local taxing authority for what he terms “big idea” projects that the City of Sioux Falls does not otherwise have a dedicated revenue source to generate funds for:

“We are a low-tax state, and we do not have a lot of revenue sources,” he said as he gave potential examples. “I’m nervous, we’re talking about all this. But a baseball stadium’s $80 million, you want an indoor recreation space with 100,000 square feet, that’s $40 million. We’re at $150 million. How are we going to pay for this? No idea.”

and..

“Very tough sell in South Dakota with a very conservative legislature,” he admitted. “But I think it’s a very important thing that we have to consider. If we want to keep dreaming big, these things cost money.

Read the entire story here.

Of course, these all come at the same time Governor Kristi Noem is working to eliminate the sales tax on groceries, among several other efforts to decrease taxes.

Should the South Dakota state legislature be giving more taxation authority to lower levels of government? Or not?

11 thoughts on “Sioux Falls Mayor Pau TenHaken to propose new sales tax for big ideas.”

  1. More sales tax again. First raise it by .5 for education and other State expense and then add it to online sales – bed booze tax – tourism tax. This sales tax seems mostly aimed at downtown recreational development. The city could opt out and increase property taxes. They have that option open. NO more sales tax and if it should be allowed then boycott Sioux Falls.

  2. The model Oklahoma City has adopted has paid huge dividends. The citizens of Sioux Falls would have the opportunity to approve the tax each cycle or vote it down. This will create many new opportunities for future generations. I believe it is a bold concept that needs to be discussed. Happy to see the Mayor start the conversation!

    1. https://www.si.com/mlb/2020/04/22/minor-league-baseball-cut-40-teams-2021

      I would strongly recommend that Sioux Falls study what happened to a non-zero number of minor league teams that ended up being folded or unaffiliated from Major League Baseball, and thus leaving nearly-new baseball stadia empty, before even putting a ballot campaign together for a sales tax increase. BTW, that Oklahoma City MAPS sales tax stopped being a success when the OKC Thunder asked for a new arena to replace one that the same MAPS sales tax funded before the team moved from Seattle.

  3. Seldom, if ever, do elected officials, regardless of party affiliation, oppose a new tax or tax increase. The more you give them the more they spend, then they want to broaden what the tax does necessitating another new tax or tax increase. If it isn’t a tax increase then it is a new fee or fee increase. Call it what you want, ultimately the taxpayer pays for it.

    What makes it even worse these increases and new fees are often, more times than not, for wants and not needs. Sounds like child’s play to me.

    Sounds like it is time for responsible budgets and spending. It is time for the wealthy conservatives to remind themselves who is paying the bills. I for one am tired of republicans blaming democrats for irresponsible spending and vise versa. It is time for class 101 on fiscal responsibility and who is paying the bills.

    Come on, South Dakota is suppose to be a conservative state. Like the Missouri State logo goes, “show me”. Not only should you show me you are fiscally conservative and responsible but one should prove it to me as well. Nobody can do that though because they are all to busy talking with their mouths full of it.

  4. Sales tax increase for recreation….no! Everyone would pay but not everyone would or could use these facilities. Let those who use them pay for them.

  5. Great cities have great public facilities. Sioux Falls needs to move up to the next level and become a center of entertainment and recreation, as well as education, health care, and commerce, in the Midwest. Of course, it will be at the taxpayer’s expense. Great cities are always more expensive to live in than podunks.

  6. Why does the stadium need to move downtown? What’s wrong with the current stadium? I attend one or two ball games a year and it’s never more than half full at best. Why waste the money when it could be used elsewhere.

  7. I’m not sure advocating for a new tax for big ideas is smart politically. Having said that, demolishing that bird cage as they call it would be a good idea. A downtown stadium is also a decent idea but only if they can get a minor league team instead of a ‘has been’ team. I know of very few people who want to watch the Canaries. They should also encourage the Legion teams to use the downtown field. ‘Build it and they will come’ is not necessarily true — you still need a good product that people are interested in watching.

    Beyond just Sioux Falls though, there are serious problems with funding at the county level in particular. Two things do need to happen — in this age of online services and more regional commerce, it’s high time we start consolidating some county services. Some counties need to figure out how to share resources and staff and maybe even buildings. But… the Legislature then needs to do its part and help the counties with longer term funding, particularly for criminal justice costs.

  8. Thanks for posting this “Jamie Smith moment” by another big spending liberal politician at a meeting of the Downtown Rotary!

    Sioux Falls! It’s not as Republican as you think it is!

  9. Sioux Falls sure has a lot of money to waste on other things that don’t benefit all of the public, and I don’t hear about the same excuses. With demand like we have, I don’t see the need for TIF’s, make developers pay for their own roads, prioritize more funding to get federal grants (SD passes these up due to not wanting to pay a 10% match). Reduce city staff and support your local businesses, SF wages are great, but that comes at a cost. There are many options and leadership tries to ignore most of them.

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