Former Aberdeen mayor Levsen: An abundance of SD Legislative property tax proposals are raising many tough questions
The South Dakota Legislature is awash with proposals for changes in property tax policy. Members of the House and Senate and Gov. Larry Rhoden are offering competing plans intended to fix things they don’t like. If an adjustment is truly justified, then let’s do it.
Before any proposal is taken seriously, we should know answers to some questions:
Is the intent to reduce total revenue or shuffle it around so some pay more and some pay less?
Who would pay more, and who are pushing for this to benefit themselves?
If nobody pays more, do you admit any tax relief means total revenue from this source declines?
If that’s true, where do we go to replace those dollars?
If we are not replacing those dollars, what services and salaries will be reduced or cut?
Do the proposals in bill form specify which property taxpayers would be negatively affected?
Does any proposed change actually expect sales taxes will be raised to replace lost dollars.
State income tax? Get serious.
Do people suggesting revenues be replaced by taxing visitors understand what a fantasy that is?
Are public schools about to get hit in the crossfire?
And perhaps the most daunting question of all:
Is there enough expertise among our legislators to deal with this? There are individuals in Pierre who have experience and a depth of ability who are capable of putting together a proposal. Getting a majority of this Legislature to agree to it or even understand it seems a daunting task.
Tax policy is a mosaic of various taxes, fees, and other revenue-raising mechanisms. It all works together to provide enough money to do the things that need doing. Different cost burdens for each source fall unequally on different segments of the population. Each has its own element of “unfairness,” with the total picture ostensibly making the comprehensive setup as fair as is practical and workable.
Unfortunately, though, the process becomes a patchwork infected by special interests and shaped by what is politically possible. Self-serving plotters are always buzzing around pushing plans in their own interest. Candidates are tempted to tailor benefits of their plans to target voters.
If we do have residents who are unreasonably burdened to a disproportionate degree, then doing the right thing by them is a valid objective. Remedying those situations should not result in windfall benefits for those who don’t deserve tax cuts and not result in extra taxes for other individuals.
Any worthy final result would require purity of intentions, competence, and compromise. I see little cause for optimism that will happen.
Meanwhile, keep an eye on them and listen for answers to the questions.
Mike Levsen is a former Aberdeen mayor and a regular contributor to The South Dakota Standard.
Photo: John Tsitrian’s property tax notice, John Tsitrian
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