How can this be? Why is the hardest thing for local government its most basic role?
The answer can be found, in good measure, by looking at the city’s tax abatement policies.
Every time the city gives a property owner a partial or full property tax break for years on end (i.e. Renaissance Zone), or diverts the property tax revenue from a section of town to something other than the general fund (i.e. Tax increment Financing – T.I.F.) those are dollars that cannot be used for the basic functions of the city government – like roads.
The need for a sales tax increase is a direct result of the city’s decisions in other areas.
In the October 14th edition of the Tribune, City Commissioner Steve Marquart appropriately asked why this sales tax increase is coming up immediately after the corporate welfare give-way using the T.I.F. powers of the city – Mayor Seminary said that is a separate issue.
Apparently the mayor’s philosophy for governing means that nothing the city commission does has an impact on the city’s finances, and that it should not be brought up. He verbally slapped commissioner Marquart by saying “that’s totally irrelevant; this is sales tax not property tax.”
Money is money. All of the city’s taxes go into the general fund, unless the city chooses to divert or abate those taxes that should apply to certain properties.
Nothing happens in a vacuum, every city commission decision has an impact on future needs – despite what Mayor Seminary may think.
Luckily, the tide may be already turning against this plan to increase the sales tax. Both commissioners Parrell Grossman and Steve Marquardt have, as part of their candidacy declarations, said they do not support the sales tax increase idea.
Voters will just have to be sure to hold these two commissioners to that, and get another willing to say NO.