Sioux Falls City Council
SIOUX FALLS, SD (KELO.com) — There’s a good chance Sioux Falls City Councilors will be looking at budget cuts later this year. Sales Tax collections only increased by 0.1% during the first quarter of this year. The city budget assumed a 6% sales tax growth rate. Another cloud on the tax revenue stream is the property tax reform package passed by this year’s legislature. That plan limits property tax growth at three-percent per year for cities, counties and school districts, including the value of new construction. Finance Director Shawn Pritchett says the provision for a 3% cap hits the budgets of the state’s fastest-growing areas particularly hard, because their growth rates typically exceed that amount. The good news, the city has a couple of years to make adjustments, and there’s a five-year sunset clause on the reform package.
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