Rep. Howie Says Pederson Ad Doesn't Tell Whole Story on Taxes

I haven't heard Gordon Pederson's ad myself, but I received this today from Rep. Gordon Howie who is running against Rep. Gordon Pederson for Dist. 30 Senate:

In an apparent attempt to avoid legitimate debate, and misrepresent the issues, Gordon Pederson has initiated a last minute advertising blitz.

The ad suggests that Gordon Howie introduced a bill to raise sales tax by 2 % on everything, including food. The attempt is clearly to give voters only a small bit of information that would lead them to a negative conclusion.

Here are the facts:

1. Howie did, indeed introduce a bill that would have raised sales tax by 2 %.

Now, here are the facts that were either misrepresented or “not mentioned”, which Pederson does not want voters to know.

1. 100% of those revenues would have been used, dollar for dollar to reduce real estate taxes for every South Dakota property owner. This would have been a 35% across the board tax reduction for every property owner in the state.

2. This proposal would have also REDUCED the overall burden on South Dakota taxpayers by $ 60 million dollars, the amount which would have been contributed by visitors to the state.

3. Consumers could apply for a rebate of sales tax on food. This system is currently in place and would have applied to this proposal as well.

There is always room for legitimate debate and disagreement. Promoting deceptions and half-truths in a last minute attempt to gain political advantage is a disservice to voters. I believe voters are hungry for a political discourse that tells the truth, the whole truth and nothing but the truth.

Howie introduced HB 1229 back in January during the 2008 legislative session. The bill was fairly simple and straightforward, increasing the sales tax in South Dakota by 2% in an effort to provide property tax relief. Howie said he hoped to provide property tax relief to people--especially young people and senior citizens--who were finding it difficult to stay in their homes due to high property taxes.

The bill was killed in committee.

As far as I know, eligibility for the food tax refund program would have been unaffected if HB 1229 had passed.

I recall this was also discussed at a cracker barrel meeting in Rapid City back in January. Howie stated at that time that the increase would be offset by the food tax refund, and no other legislators or audience members present contested that assertion.