"No new taxes" has reappeared on South Dakota's political horizon.

South Dakota District 30 Rep. Mike Verchio talked to constituents at a town hall meeting Monday night about their feelings about proposed taxes and fees for the coming legislative session.

In the last session, when Gov. Mike Rounds talked about a $38 million deficit for the state, Verchio figured the state was down $180 million.

"It's getting worse and worse every month. We're in big, big trouble," he said.

To ease the shortfall, there were a few proposed increases to fees and taxes that came out of the Legislative Research Committee that might help alleviate the deficit.

"It means more gas taxes, excise taxes and license plates fees," he said.

John Flint of New Underwood understood the predicament of the state but also found it pretty hard to embrace any new increases.

"I don't think that right now very many people are making more money to pay extra taxes," he said. "It's an awful time to raise taxes."

Nearly the opposite was true, he said.

"Any tax increases right now is going to hit people so hard," Steve Brandsted said.

According to the Department of Transportation, motor fuel revenue is at the lowest it has ever been with $122.8 million generated in 2004, but only $116.1 million brought in for 2009; and excise taxes for 2009 produced $55.5 million, a fall from 2004's $56.9 million.

Road construction, however, has had significant increases from 2005 to 2009, with 22 percent to 79 percent increases for road materials used.

"All those costs keep going up. I campaigned on infrastructure, so this is important," he said.

If successful, the state will increase current taxes on a gallon of gas from 22 cents to 32 cents between 2010 and 2012. Some say it won't affect the price of gas paid at the pump, but Verchio was skeptical. Brandsted, who owns a gas station, said it would definitely show up on the ticket price.

"Believe me, there's no money to be made in selling gas," he said.

Excise taxes, the money paid when buying a new vehicle, will be go up from 3 percent to 4 percent.

If successful, the proposed license plate fees would double, Verchio said.

Currently, state fees charged for a 2009 Toyota Camry are $44 in South Dakota; $93 in North Dakota; $317 in Minnesota; $242 in Iowa; $421 in Nebraska; and $427 in Wyoming. For a 2004 Ford Ranger pickup, fees charged cost $31.40 in South Dakota; $81 in North Dakota; $74 in Minnesota; $120 in Iowa; $154 in Nebraska; $101 in Wyoming.

"The $44 fee will go up to $88. Even at $88, we're still the lowest," Verchio said.

"I don't think anyone can afford new taxes. South Dakota has to become more fiscally responsible. If the motor fuel revenue is down, it means that tourism is down and it reflects upon our national economy," Brandsted said.

Instead of growing, the state's government has got to start shrinking, he said.

"It's crazy. It's got to stop," Brandsted said of continued government growth.

Verchio said his constituents would all have to share the pain. They would have to separate the wants of government such as state parks, state fairs, public broadcasting stations and arts, with needs such as education and Medicaid.

"These are tough hits," he said.

"It's ridiculous. It all has to come down to no growth in government," Brandsted said.

Other discussion included 1 percent sales tax for proposed municipal projects, tort reform, stronger property rights over open fields, land trades with federal property and limiting wilderness areas.

Verchio will discuss these proposed taxes and fees at town hall meetings at 7 p.m. Tuesday, Nov. 10, at the Edgemont Senior Center in Edgemont and at 2 p.m. Wednesday, Nov. 11, at Woolies in Hot Springs.

Contact Jomay Steen at 394-8418 or jomay.steen@rapidcityjournal.com.