Nobody likes to raise taxes, but we believe a proposal that would allow cities and towns to do exactly that through an optional one-cent sales tax deserves legislative approval.
The House Local Government committee will consider HB 1198, a bill that would allow municipalities to impose an additional penny sales tax to finance special projects for short term use, but only with voter approval.
One of the best indicators that HB 1198 is a good idea may be its long list of primary sponsors. That list includes lawmakers from municipalities large and small. Legislators from places like Hill City and Prairie City have joined forces with those from Rapid City and Sioux Falls to back the idea that an additional penny sales tax, imposed for limited times for a specific use, is the best type of taxation: local and limited in time and scope.
While we agree that the regressive nature of a sales tax falls more heavily on the poor, we do like that, at least, this tax burden would give voters of all income levels the right to approve or reject that burden directly at the polls. As long as the additional sales tax remains a "special" tax with a sunset provision, we think it's a logical short term solution to some city funding issues.
Rep. Mike Verchio, R-Hill City, believes the additional one-cent tax would be a boon to small communities like his. So do mayors of other area cities, which often are strapped for money to fund major capital projects or to make necessary infrastructure improvements. So does the South Dakota Municipal League, which supports passage of the bill.
In Rapid City, we've seen what can be accomplished with a targeted sales tax through the Vision 2012 funds. Numerous civic projects that improve the quality of life in Rapid City stand as testament to that tax. We think HB 1198 would put the ability to create those important special projects in the hands of other local taxpayers statewide and we urge lawmakers to approve it.

