A proposed bill that would allow South Dakota cities to add an extra penny to the sales tax for special projects will be considered by state lawmakers this year.  A task force that wants to build an events center in Sioux Falls says the extra penny would help pay for their project.

The proposal would allow South Dakota cities to add a third penny onto the sales tax it collects. Sioux Falls says it would collect an extra $50 million a year from the tax. But the first draft of the bill says voters would have to approve the increase before it took effect. And that's where the debate for state lawmakers may lie.

A proposed Sioux Falls events center is the main project that will push lawmakers to consider changing the way South Dakota cities tax their citizens.

"The legislature's role is to authorize it and it would be up to the cities if they want to engage. If they have a specific project," Rep. Todd Schlekeway said.

Right now, cities in South Dakota can charge up to a two cent tax on every dollar spent in their city. And the state legislature has to give them the authority to raise it any higher. The proposed bill would allow cities to do that as long as voters approve the extra tax during an election. Schlekeway sees the bill as a way to leave local decisions up to local citizens.

"I've always been an advocate for the philosophy of local control, and with that said, I think this legislation is structured that way," Schlekeway said.

But Senator Sandy Jerstad doesn't see it that way and doesn't think residents will see it that way either.

"People are going to jump to conclusions. They're going to say, 'There the legislators go, raising our taxes.' They are not going to hear the other part," Jerstad said.

Jerstad says the proposal will open the door for more taxes on the poor and families who are struggling in a slumping economy. And right now, Jerstad says she would vote against the proposed bill.

"That's going to be a tough issue, a tough sell. I think for the legislators because it is a recession time, people are having a tough time," Jerstad said.

Jerstad is also opposed to the bill because it would raise taxes on food, which is a necessity for families. Schlekeway says he is also concerned about that issue and wants to work to exclude increased taxes on food from this bill.