Sioux Falls, S.D. (KELO AM) - Sioux Falls residents will not see a decline in the property tax bills as promised by the 2016 hike in the state's sales tax for teacher pay.
The school district voted unanimously on Monday to raise property taxes by as much as the decline, meaning there will be no change in what residents are currently paying. The move is a pro-active one, according to Board President Todd Thoelke. "We're just getting another mechanism to help us should we have another downfall with the state revenue, or if there's any federal money that was to go away." He added that the move received the stamp of approval from a local financial action network.
Thoelke says discussion on the matter began in April. Superintendent Dr Brian Maher supports the move, saying this way homeowners won't see an increase in the property tax they are already paying, while the district will get to pad its rainy day fund.
Just before passing the measure, the board voted against tabling the measure for two weeks. Thoelke said he didn't see an advantage to putting the decision off any longer. "It's been out there, we felt it was a prudent decision, we had the perfect amount of input from the financial network." Thoelke went on to say that despite having the information posted as part of the board's agenda and minutes since April, they didn't receive any public input on the matter until Monday's meeting.
The move could reportedly amount to nearly $5 million dollars a year for the district over the next decade. On a typical $100 thousand dollar home, the district would see an extra $30 annually.