Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
Milbank council adopts resolution warning of nearly $479,000 revenue loss if Initiated Measure 28 passes
Summary
Resolution 9-9-24 says Initiated Measure 28 would eliminate municipal sales taxes on most items sold for 'human consumption' and estimates Milbank stands to lose $478,800 in annual sales-tax revenue; the resolution passed 5-0 with one abstention.
The Milbank City Council approved Resolution 9-9-24 on Sept. 9, which states that Initiated Measure 28 — certified for the November 2024 ballot — would remove state, municipal and tribal taxes on items sold for "human consumption" except alcohol and prepared food. The resolution notes that "human consumption" is not defined in state law or the state constitution and cites uncertainty and likely need for legislative or judicial clarification.
The resolution cites the city's 2023 two-percent sales tax collection of $456,000 and $239,400 year-to-date in 2024, and estimates an annual lost revenue figure of $478,800 if the measure passes. Council approved the resolution with a recorded vote of 5-0 and Councilmember Craig Weinberg abstained from the vote.
The resolution also references South Dakota Codified Law 10-52-2 (municipal sales tax authority) and SDCL provisions on tobacco and vapor products when discussing definitions noted in the Attorney General's explanation. City staff identified potential budgetary impacts if the ballot measure becomes law; no legal challenge or binding interpretation occurred at the meeting.
