Mercer gives some insight into the massive tax increases the South Dakota Legisalture passed and Governor Daugaard signed into law:
State lawmakers purposely decided against delaying increases in license plate fees when they approved the highway and bridge funding legislation on the final day of the main run of the 2015 session last week.
The House of Representatives engaged in a sharp debate Friday, largely between Rep. Thomas Brunner and Rep. Dick Werner, about whether county treasurers were ready to charge the 20 percent fee increases on vehicle registrations. The increases take effect April 1.
Here is Brunner's position:
Brunner said county governments wouldn’t have much time to be ready, because the legislation as presented would take effect in its entirety, including the license plate increases, on April 1.
He wanted counties to receive more time, so they could “make it fair for everybody who has to renew their licenses.”
He said “the real fair thing” would be to delay the license plate increases until Jan. 1, so that all renewals would pay the new amounts for the same year.
“With the emergency clause on there, I think we’ve created kind of a wreck for county treasurers,” Brunner said.
Werner and others respond:
Werner said he spoke to an official for the state Department of Revenue on Friday. Werner said he was told the department delayed its next round of renewal mailings that were scheduled to go out Monday.
House Republican leader Brian Gosch of Rapid City said it was time to vote straight up on the measure, Senate Bill 1. A voice vote on Brunner’s amendment failed.
“I think we’re jumping into this ... too quick,” Rep. Dan Kaiser, R-Aberdeen, said.
He described the legislation as a state solution for a county and township problem.
But another Brown County lawmaker, Rep. Dennis Feickert, D-Aberdeen, described it as “the best opportunity to move forward with the some funding.”
He is a former Brown County Commission member.
Turns out Brunner was right:
The Division of Motor Vehicles directed county treasurers Monday to immediately start charging the higher fee if vehicle owners whose registrations expire in May try to beat the April 1 increase, the Rapid City Journal reports. Vehicle owners can renew their registrations 90 days before the month they expire, according to state rules.
Pennington County Treasurer Janet Sayler said the directive has caused "uproar" among county treasurers who feel they would be violating the law by charging higher fees before April 1.
"I cannot charge people more than the law allows," Sayler said. "I do not have the authority to do that."
Brown County Treasurer Sheila Enderson said that she "can't charge a fee that doesn't exist."
"It's not right. People are entitled to buy early," Enderson said.
Looks like Brown County lawmaker, Rep. Dennis Feickert, D-Aberdeen did not represent his County Treasurer very well. The controversy also landed in Davison County:
Some county officials are upset over a directive from the South Dakota Division of Motor Vehicles regarding when county treasurers should impose an increase in vehicle licensing fees.
A new state law increases most motor vehicle license fees by 20 percent, effective April 1. It was signed into law Tuesday by Gov. Dennis Daugaard.
[Davison County Treasurer Christie]Gunkel said she received an email on Monday that included the directive to immediately start charging the higher fee to vehicles owners whose registrations expire in May.
Vehicle owners can renew their registrations 90 days before the month they expire, according to state rules.
So County Treasures were given the directive on Monday, but the Governor did not sign the bill until Tuesday, the next day? Mercer reports that the Governor then stepped in on Wednesday to fix the problem:
Vehicle registrations aren’t renewed in April and treasurers said they were told by state officials they wouldn’t be allowed to give discounts for May renewals that are made before April 1. However, the Daugaard administration changed its position late Wednesday afternoon.
“April 1 is the date when the fee switches according to the new Highway Funding Bill,” Peggy Laurenz, director of the South Dakota Division of Motor Vehicles said in a news release. “For example, if a customer with a May renewal date were to visit a county treasurer’s office or a DMV self-service electronic terminal on or before March 31, they would pay the current fee.”
Wow, there seemed to be a big rush to get these tax increases started. Why? Just a little over a year ago the State Department of Transportation said there was no need to increase road taxes. Was it for the benefit of helping out the counties?
To answer that we first need to better understand where the extra tax revenues are going. If you go to the bottom of a Cory Heidelberger post, you will find a diagram that shows only $17 million of the $85 million annual tax increase comes from license plates fees. The other $68 million from increased gas taxes and excise tax on cars goes to the State Highway Fund, and not the counties.
And if you look closely at the diagram $7 million of the $17 million in extra license plate fees that would have normally gone to the counties is instead being diverted to a "Local Bridge Improvement Grant Fund". SoDakLiberty explains:
Section 1 – Section 1 creates a local bridge improvement grant fund. This fund can be used by any local government to construct, reconstruct, or repair bridges. It will be up to the Transportation Commission to determine who gets the grant money. In order to receive the grant a county must have “adopted and annually updated its county highway and bridge improvement plan pursuant to the provisions of section 3 of this Act”. The county must also have imposed a county wheel tax per § 32-5A-1.
For those unfamiliar with the wheel tax, it currently allows counties to tax each vehicle $4 per wheel up to a total of $16 (basically up to four wheels). If a county has not implemented this already existing tax the state will not help them out with this new grant money. Spoiler alert! Section 25 of this act actually increases the wheel tax from $4 per wheel to $5 per wheel. It also changes the total amount from $16 (four wheels) to $60 (12 wheels).
Section 2 – Section 2 authorizes the Transportation Commission to create rules (pursuant to Chapter 1-26) to decide how local governments will apply for and how they will choose which projects will get the grant money.
Section 3 – Section 3 authorizes the Transportation Commission to create rules (pursuant to Chapter 1-26) to set the requirements for a “county highway and bridge improvement plan that details proposed county highway and bridge improvement projects in a county for the next five years.” Any county that doesn’t create the plan will not be allowed to receive the grant funds created in section 1 of this act.
Section 4 – This section amends § 32-11-34, Local government highway and bridge fund.
This section of the bill states that every quarter $1,750,000 will be transferred from the Local government highway and bridge fund to the newly created local bridge improvement grant fund. Currently the money in the older Local government highway and bridge fund is allocated to the counties and municipalities as laid out in § 32-11-35. Now the change in this bill will take $1.75 million out of that fund each quarter and place it in the new grant fund created in Section 1 of this act. I wonder if there will be some municipalities and counties unhappy with this change. It could lead to fewer funds for counties and municipalities that choose not to play by the rules set forth by the Transportation Commission. It also seems to be a way to co-opt funds meant for all the counties and municipalities into areas favored by the Transportation Commission.
So we are paying higher license plate fees that is suppose to used by counties to fix our roads and bridges. But in order to get half of that back, we have to pay more taxes on aour wheels, plus we have to have a five year plan for the money. Not much for local control here.
So what possible areas would be favored by the Transportation Commission as stated in Section 4? As I noticed before, there was a lot of economic development organizations that were extremely supportive of these tax increases. So what economic development plan could require a huge investment in roads? Perhaps this is one answer from Governor Daugaard:
With the construction of Bel Brands’ new cheese plant in Brookings and other dairy processing companies who are looking to expand in our state, South Dakota farmers will need to increase their dairy cattle herds by several thousand head over the next few years in order to keep up with the escalating demand for milk.
That is why I have attended the World Ag Expo in California for the last three years. The relationships we’ve made at those events have proven valuable to South Dakota and have led to new economic opportunities.
Though we’ve done some work to recruit outside of South Dakota, more than anything, we want our local producers to have opportunities to expand their operations. To that end, the South Dakota Department of Agriculture offers business development opportunities. Through their finance programs, the Department assists our producers in expanding the infrastructure of their current operations.
Daugaard tries to downplay the work to recruit outside South Dakota, but there is a huge effort to bring mega dairies into South Dakota:
That’s where David Skaggs comes in. He’s an Agriculture Development representative with the South Dakota Department of Agriculture.
Skaggs works for South Dakota luring dairies to the state. He met the Azevedos at the World Ag Expo in Tulare, Calif. The dairy pavilion there is often full of recruiters from the Midwest – Iowa, Nebraska, Kansas – all vying for the attention of dairy farmers.
“We have dairies that have relocated from Ireland, England, The Netherlands – numerous other states as well, but California seems to be a good target market for us,” Skaggs said.
Skaggs says his goal is to double the number of dairy cows in the state.
“Since I took over in 2005, we have grown our dairy industry from 81,000 dairy cows to 97,000 today,” he said. “By the end of the year we’ll be over 100,000 cows.”
South Dakota recruits so hard that the state’s governor, Gov. Dennis Daugaard, is involved in the recruiting. The state even uses a hashtag #getsomemilk2014.
“We’re trying to attract California dairymen to look at South Dakota’s advantages for establishing a dairy,” Daugaard said at last year’s expo.
And this explains why the State Transportation Commission want control over where all the road and bridge money is going:
State Secretary of Ag Lucas Lentsch says the dairies they are courting are interested in relocating to get away from the burdens of environmental regulations.
From the audio clip: "Just last month we had 7 different Californians in South Dakota last month looking for sites for dairy, and one from Wisconsin looking for a site. So... and they're not just surveying the atmosphere of South Dakota and thinking about it, they're actively looking for property."
From the audio clip: "You know at any point we can have six to a dozen active relationships that are going on, but one of the things we continue to come back home to is site location and our county site analysis is only a year into the program but where we've had over 30 counties looked at (by) the Dept. of Agriculture to help study their counties for good, better and best for ag development or even livestock development."
http://wnax.com/news/180081-california-dairies-relocating-to-interstate-29-corridor/
The roads that will be getting most of the money will be the ones going to and from the sites selected by the Dept. of Agriculture for the mega dairies needed to supply milk to French cheese maker. And those roads would have to be part of the counties' "5 year plan". Here is more:
The Oaklake Dairy is believed to be the first dairy that uses Gov. Duagaard’s ‘County Site Analysis Program’. This program pre-certifies land for ag development… primarily sites for CAFO development. A CAFO is a ‘Concentrated Animal Feeding Operations’ which has unusually high densities of cattle under one roof.
400 potential CAFO sites in 4 counties
“Since its launch, 26 of South Dakota’s 66 counties have signed up for the program. Four "pilot" counties have completed the process, resulting in identifying more than 400 potential CAFO sites. Outreach to landowners has begun, and plans are underway to have 11 more counties completed by July 2014.
So the real agenda behind SB 1 was not fixing roads and bridges for the citizens of South Dakota. It seems to be more for subsidizing the transportation infrastructure for mega dairies to supply milk to the French cheese maker in Brookings. So 70 of your state representatives and senators from both parties voted to tax each and every one of us in order to fund the industrialization of South Dakota's agriculture economy that will benefit large corporate entities. How will the small family farmers survive in such an economic environment where the government favors the largest of the large producers? The big (government and business) will turn us all into slaves. And we are all suppose to be happy about all of this because we have a job.
So how close is South Dakota getting to being a totalitarian state?
Recent Comments