IM-28 Opponents close out South Dakota Municipal League Conference

SIOUX FALLS, S.D. (Dakota News Now) – The South Dakota Municipal League wrapped up its annual conference with another forum, where speakers warned about IM-28.

Opponents denounced the measure, saying that the ballot measure is written very poorly and that if judicial review is what’s being relied on, then that would be chaos for the state of South Dakota.

In his statement to Secretary of State Monae Johnson, Attorney General Marty Jackley said judicial or legislative clarification of the measure will be necessary.

Senator Tim Reed said the confusion of the measure’s language needed review like they have in the legislature.

“Those committee meetings are where we really work through and look for those unintended consequences and we make sure the wording is correct in a bill, and so this bill here does not have correct wording, and it would’ve failed in the legislature,” Reed said.

Those who spoke are also worried about their relationship with the Department of Revenue when it will no longer be able to collect and administer the sales taxes on the cities’ behalf

“So, cities, even if they can collect these taxes that portion of the law will go away, and we’ll be left to fend for ourselves on how we administer sales tax or perhaps contract with the Department of Revenue, and this will make a substantial negative impact on city budgets and our finance offices,” Sam Nelson, General Counsel for the South Dakota Municipal League said.

On the ballot, the fiscal note will say that this measure will cost the state $123.9 million, but opponents said at the very least it will cost $133 million and could be up to over $600 million depending on what items end up falling under the consumable items umbrella.

They said any cost will hurt cities in the state and that it’s important citizens think about their tax burden.

“If you’re not interested in an income tax, and you’re not interested in higher property taxes, where are the funds going to come from in order to do the normal basic operations of both state and municipal government,” Nathan Sanderson said.

According to WalletHub, South Dakota is 44th in the country in total tax burden at 6.44%.

Harrisburg Mayor Derick Wenck said that he’s concerned that if this passes, his city will not be able to pave roads and that citizens will continue to have to park on the same muddy gravel roads that they have before.

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