The task force in charge of finding a way to build an events center in Sioux Falls wants the city to offer rebates to eligible families on part of the proposed third-penny sales tax.
The third-penny sales tax is projected to raise about $150 million over three years to build the events center. City Hall estimates a family would spend about $120 a year on the food portion of the extra sales tax, which can be a lot of money for families on tight budgets. So the task force wants to give those families a break on having to pay more at the grocery store.
Task force members say they're responding to concerns raised by those who think the third-penny sales tax is an unfair burden on the poor. So they're recommending that the city offer low-income families rebates on the food portion of the sales tax.
"I think it's very doable. In fact, there is a program that exists at the state level today to provide that refund of the food tax today, so that mechanism is in place at the state level, we would just have to do that at the local level," events center task force member Dana Dykhouse said.
The rebates would most likely be paid out through debit cards or cutting checks. Task force members are confident they will be able to raise enough money for the events center even after subtracting the amount given back in rebates. But some people think a food tax rebate is simply adding another layer of government bureaucracy.
"The people that are eligible for rebates, don't like the paperwork, and it's just a bad idea," Bob Sivertson of Sioux Falls said.
Critics say the food rebate still doesn't soften the financial blow to the poor, adding that a 3rd penny sales tax will be a tough sell to voters in Sioux Falls.
The task force will present its recommendation to the city council a week from Monday. Then it will be up to the legislature to allow the community to vote on approving the additional sales tax to pay for the project.


