HomeMy WebLinkAbout2024_09_17 CC Study Session Presentation
CITY OF BROOKINGS 6281-Phone: (605) 692–Brookings, SD 57006 –520 3rd St. –Brookings City & County Government Center .responsible municipal managementa diverse economic base through innovative
thinking, strategic planning, and proactive, fiscally The City of Brookings is committed to providing a high quality of life for its citizens and fostering Tuesday, September 17, 2024
| 6:00 p.m. | City & County Government Center dedication, generosity and authenticity. Bring your dreams!"sustainability and pursues a complete lifestyle. We are committed to building
a bright future through "We are an inclusive, diverse, connected community that fuels the creative class, embraces CITY COUNCIL STUDY SESSION|Meeting Agenda |
1. CALL TO ORDER-ALLEGIANCEPLEDGE OF
2. RECORD OF COUNCIL -ATTENDANCE
3. ACTION TO APPROVE Action: Motion to Approve, Roll Call-THE AGENDA
4. OPEN FORUM the views or positions of the City of Brookings or City Council.The speaker’s comments and views expressed do not necessarily reflect Comment is limited to a maximum of
three minutes per person. Public asked to state their name and city of residence for the record.Individuals are or request time on the agenda for an item not listed.Any member of the
public may make a brief announcement or invitation, -
5. Discussion on IM 28-Stephanie Mason, VP of Ec Dev & Op DirectorTim Reed, District 7 SenatorNathan Sanderson, Exec. Dir. SD Retailers Assoc.Rick Wieland, IM 28 sponsorPresenters
include:
SOUTH DAKOTA MUNICIPAL LEAGUE alcohol. would eliminate your city’s ability to tax anything sold for human consumption except prepared food and 28 -legislative clarification of the measure
will be necessary.” This means, as it is today, passing IMstate tax on such items up to two percent. In fact, the Attorney General’s explanation states “Judicial or impose a tax on
the sale, use, storage and consumption of items that conform in all respects to the 2, which allows municipalities to -52-sales tax, it is in direct conflict with South Dakota Codified
Law 10Despite the ballot measure’s language that cities can continue to impose a Conflicts with State Law: 20.”-46-34§products as defined in for human consumption, including cigarettes,
cigars, pipe tobacco, and smokeless tobacco, and vapor 1(7) defines tobacco products as “any item made of tobacco intended -46-but they’re wrong. SDCL 3428 proponents deny the impact
to tobacco, -and hygiene products like mouthwash and toothpaste. IMtax include unprepared food items, candy, soda, tobacco products, CBD, over the counter medicines, Due to the vague
definition, items that the state, cities and tribes can no longer reaching Tax Cuts: -FarTherefore, we look to Black’s Law Dictionary which would add numerous items beyond food items.
consumption.” A quick search of state law produces no definition of items for “human consumption.” The ballot measure repeals the state’s ability to impose a tax on “anything sold for
human Definition: unintended consequences that the proponents have failed to acknowledge. least, that is what they would have you believe. However, the poorly drafted ballot measure
has 28 was launched as a repeal of the state’s 4.2% sales tax on groceries. At -IM28: -Objections to IM
SOUTH DAKOTA MUNICIPAL LEAGUE more than it will help them. state. Together, we can defeat this irresponsibly drafted ballot measure that will hurt South Dakotans 28 includes local leaders
like you across the entire -is crucial that the grassroots effort to defeat IM28 is bad for South Dakota, and it is especially bad for South Dakota communities. It -IMConclusion: 28
committee at nosdincometax.com -locally willing to donate financially to the IMplease let me know. While public funds cannot be used to influence elections, you may know people 28.
If you would like help writing a column for your local paper, -about why they should oppose IMyour city. Attached is a template resolution. Use your pulpit as a local leader to inform
your residents 28 to -Get on the official record and adopt a resolution stating the impacts of IMHow You Can Help: greatly increase the potential lost revenue to municipalities.municipalities
to collect online (remote) sales taxes (Streamlined Sales Tax Agreement), which could state agreements allowing -28 could conflict with multi-Also, as the Attorney General has pointed
out, IMof tax due to each code division that is from sales of consumables. Note: our estimate is based on 2023 sales tax reports and SIC codes. We then assigned a percentage 28 passes.
-estimate Sioux Falls to see a 8.3% loss in sales tax revenue equaling $1,631,000 if IMThe local city impact will also be significant. Based on a recent analysis, we Impact to Brookings:
28 estimates a potential annual loss to the state of $646 million. -The fiscal note for IMFiscal Impacts: to sales tax revenue. There is no immediate replacement for those losses.
Due to the reasons listed above, cities throughout South Dakota will see major losses Revenue Loss:
SDML impact the municipal budget in our community. NOW, THEREFORE, BE IT RESOLVED, by the City Council of _________, that Initiated Measure 28 would negatively by voters in South Dakota.WHEREAS
The City of __________ estimates annual lost revenue of $_________ unless Initiated Measure 28 is rejected date in the 2024 fiscal year;-to-$__________.00 yearpercent sales tax and
collected $_________ in the 2023 fiscal year and -WHEREAS The City of ____________ levies a twothe measure passes;WHEREAS the Attorney General’s explanation of the measure states legislative
or judicial clarification would be needed if and consumption of items that conform in all respects to the state tax on such items up to two percent;2 allows incorporated municipalities
to impose a tax on the sale, use, storage -52-WHEREAS South Dakota Codified Law 10.”;20-46-34 §human consumption, including cigarettes, cigars, pipe tobacco, and smokeless tobacco,
and vapor products as defined in any item made of tobacco intended for 1(7) defines tobacco products as “-45-WHEREAS South Dakota Codified Law 34”;Dictionary defines “consumption” as
“the act of destroying a thing by using it; the use of a thing in a way that exhausts it.WHEREAS “human consumption” is undefined in South Dakota Codified Law or the South Dakota Constitution.
Black’s Law consumption except alcohol and prepared food;WHEREAS Initiated Measure 28, if passed, would remove state, municipal and tribal taxes on all items sold for human Secretary
of State;WHEREAS Initiated Measure 28 was certified for the November 2024 General Election Ballot by the South Dakota PROPOSED RESOLUTION–
6. CITY COUNCIL MEMBER frame. A majority vote is required.which states the topic, requested outcome, and time action at this meeting. A motion and second is required topic at a future
meeting. Items cannot be added for Any Council Member may request discussion of any -FOR FUTURE DISCUSSION.INTRODUCTION OF TOPICS
7. ADJOURN Bonnie Foster, City ClerkPaul M. Briseno, City Manager Steven Britzman, City AttorneyCouncil StaffBonny Specker, Holly Tilton ByrneCouncil Members: Wayne Avery, Andrew
Rasmussen, Brianna Doran, Mayor: Oepke Niemeyer Deputy Mayor: Nick Wendell Brookings City Council-