Letters to the Editor - Mayors: IM 28 is bad idea for South Dakota
As South Dakotans prepare to vote on Initiated Measure 28, it is crucial to understand the far-reaching negative consequences this measure would have on the financial health of our state and cities and the services we all depend on. Here are three reasons why IM-28 is a bad idea for South Dakota and the municipalities we’ve been entrusted to lead.
1. IM-28 Slashes Essential State Revenues
IM-28 proposes eliminating sales taxes on “anything sold for human consumption,” except for alcohol and prepared food. While this might sound appealing at first glance, the measure’s vague language could lead to the loss of revenues from a wide array of items, including tobacco, vaping products, and many other “consumables.” The nonpartisan South Dakota Legislative Research Council recently estimated that IM-28 could cut state funding by up to $646 million. That would remove 46.5 percent of the state’s sales tax revenue and 100 percent of tobacco tax revenues! This staggering loss would force the state to cut funding for essential programs like K-12 education and healthcare.
2. Local Communities Will Suffer
Under state law 10-52-2, municipalities can only tax items that the state taxes. IM-28 would not repeal this section of law. If the state cannot collect sales taxes on “anything sold for human consumption,” neither can cities and towns. This means that IM-28 would not only cut state revenue but also strip $51.5 million from the budgets of cities and towns, reducing funding to fix potholes, update infrastructure, staff libraries, operate pools, maintain parks, and provide public safety personnel.
3. No Plan to Replace Lost Revenue
IM-28 would cut nearly $700 million from state and local budgets. This would force cities, towns, counties and school districts to consider property tax increases to make up the losses. It also sets South Dakota up for a potential ballot issue to implement an income tax. Neither approach makes sense for our state, but we know the lost revenue will need to come from somewhere.
Conclusion
IM-28 is a poorly conceived and poorly written measure that threatens the financial stability of South Dakota at both the state and local levels. It’s imperative that voters understand the true implications of this measure and reject it to protect our state’s economy and the local services we are tasked with delivering to our residents. Voting no on IM-28 is a vote to maintain the quality of life and fiscal health of South Dakota.
South Dakota Mayors and Board Chairpersons,
Jeff Kelsey, Alpena; Travis Sparks, Armour; Harry Buck, Brandon; Sandi Lundstrom, Canton; Brian Riese, Castlewood; Kent Austin, Centerville; Kerry Kline, Clark; Butch Oseby, Crooks; Brad Kahler, Dallas; Tom Earley, Dell Rapids; Randall Traversie, Eagle Butte; Deb McCreary, Elk Point; Gloria Hanson, Fort Pierre; Al Cerny, Gregory; Derick Wenck, Harrisburg; Arden Jones, Hartford; Vikki Day, Highmore; Robert Nelson, Hot Springs; Board President Ritchy Griepp, Humboldt; Mark Robish, Huron; Bryce Johnke, Irene; Board Chair Ryan Maher, Isabel; Paddy Rigg, Jefferson; Harry Weller, Kadoka; Donnie Hamiel, Kimball; Board Chair Dale Plunkett, Kranzburg; Matt Barnes, Lemmon; Danny Fergen, Lennox; Roy Lindsay, Madison; Brian Bauer, Mellette; Tom McGough, Miller; Jordan Hanson, Mitchell; Gene Cox, Mobridge; Weston M. Grant, Mount Vernon; Patti Teel, North Sioux City; Board President Gary Dominiack, Oacoma; Derek S. Nolan, Parker; Brit Miller, Philip, Board President Cindy Broyhill, Pickstown; Larry McManus, Pukwana; Jason Salamun, Rapid City; Board President Lisa R. Braun, Rosholt; Glenda Blindert, Salem; Randy Thum, Scotland; Paul TenHaken, Sioux Falls; Terry Jaspers, Sisseton, John Senden, Spearfish, Scott Kostal, Springfield; Angela Wilkerson, Sturgis; Casey Voelker, Tea; Kenneth Fideler, Volga; Tammy Thorton, Wagner, Mary Williams, Wall; Reid Holien, Watertown; Kevin Jens, Waubay; Mike Grosek, Webster; Board President Cody Kleinsasser, Wessington; Scott Gladis, White; Mitch Harmon, Whitewood; Ryan Frerichs, Wilmont; Jon Cole, Vermillion
