OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Brookings City Council Study Session on IM 28 – September 17, 2024

Meeting Portal — Tuesday, September 17, 2024
BodyBrookings, South Dakota
SessionMeeting Portal
DateTuesday, September 17, 2024
StatusFILED
Video Record
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Transcript — Verbatim
0:38

Okay, call the order or the meeting to order.

0:41

Please stand for the Pledge of Allegiance.

1:02

Thank you all for attending tonight.

1:04

Will the city clerk please do the roll?

1:07

There are six council members present, Mr.

1:09

Mayor, Councilmember Brianna Duranathone, and Councilmember Specker is absent.

1:14

Thank you.

1:15

Okay.

1:16

Action on improved the agenda.

1:18

Entertain a motion to approve the agenda.

1:20

So moved.

1:21

Second.

1:22

Please call the roll.

1:24

Avery.

1:25

Hi.

1:25

Doran?

1:27

Hi.

1:27

Neemeyer.

1:28

Hi.

1:29

Rasmussen.

1:29

Hi.

1:30

Tilton Byrne.

1:31

Hi.

1:31

Wendell.

1:32

Hi.

1:32

All right.

1:32

We get to move on.

1:33

Open forum.

1:34

Is there any member of the public who wishes to address the council on an item not listed on tonight's agenda?

1:43

Okay.

1:43

Seeing none, we'll move on.

1:45

Item five.

1:46

The reason why we're here this evening.

1:48

Discussion on IM 28 prohibiting taxes on anything sold for human consumption.

1:53

Just so you all know, tomorrow our tonight's video will be available first thing tomorrow morning.

1:57

So if you uh want to watch it again or let everybody else that missed it, that it will be available.

2:04

All right.

2:04

From there, Paul Brusino, our city manager, will present this item.

2:08

Thank you, Mayor.

2:08

City uh council members, mayor.

2:10

Uh this and this item was brought forward at a request by the city council as an opportunity to inform the public on IM 28.

2:17

This course is a ballot measured for November 5th on prohibiting certain taxes on consumables.

2:23

For the presentation tonight, we have Rick Wyland, uh, the sponsor of IM 28.

2:27

Nathan Sanderson, executive director of the South Dakota Retailers Association.

2:32

Sarah Rankin, executive director of the League of Municipalities, Tim Reed, District 7 Senator, and Stephanie Mason, Vice President of Economic Development and Operations, and there might be a few other people that want to speak to the item.

2:44

So with that said, would uh probably turn it over to Rick to go ahead and present his items to the to the council and to the public pertaining to uh the sponsorship of IM28, and then we'll transfer it over to Nathan to speak to the items.

2:59

Thank you for uh the invitation, uh Paul and uh the council for giving me an opportunity to tell you our side of the story.

3:08

There's always two sides to a story.

3:09

You probably heard a lot from the other side, and I'm gonna try to address some of those uh issues that have been raised.

3:15

But first of all, I am 28 um simply removes the state's sales tax on food.

3:24

Okay, and that would be at this juncture 4.2 percent.

3:29

Um we went through the process every time you do, working with the various state agencies that you need to deal with, including the legislative research council, which is a bipartisan or nonpartisan entity that's there to support both the legislature and citizens.

3:48

Um 28 is about providing relief to people that need it most, and I I just want to reference that uh feeding South Dakota, which is the largest uh hunger relief uh organization in our state.

4:04

They have a footprint throughout the country, but recently just uh updated their research and said that there were over 106,000 uh South Dakotans that they declassified as food insecure, which means uh they don't know where the next meal is coming from.

4:22

That's uh more than 10 percent of our population, one out of six of them are kids.

4:29

Um families that aren't on you know food stamps but are in that gap, um, end up spending upwards of 30 percent of their income just to buy groceries, just to put food on the table to feed their kids.

4:48

It is a regressive and I think immoral tax and disproportionately affects the most vulnerable in our society.

5:00

South Dakota is one of two states that still collects the full state tax on food, the other state being Mississippi.

5:06

Um we've been fighting this issue.

5:09

When I say we the collective, it's been ongoing for 20 years in the state legislature.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability█████████████████████████████████████████████61%
Procedural██████████████████24%
Economic Development███████9%
Public Engagement████5%
Public Works█1%
Summary of Proceedings

Brookings City Council Study Session on IM 28 – September 17, 2024

At the September 17, 2024, study session, the Brookings City Council discussed Initiated Measure 28 (IM 28), a ballot measure that would prohibit the state from taxing anything sold for human consumption (excluding alcoholic beverages and prepared food). The meeting featured presentations from both proponents and opponents, followed by council questions. No formal action was taken; the session was informational.

Discussion on IM 28

  • Rick Weiland (sponsor of IM 28) argued that the measure simply removes the state's 4.2% sales tax on food, providing relief to the 106,000 food-insecure South Dakotans. He cited a poll showing 66.4% public support and emphasized that municipalities could continue to collect their own sales tax, citing the fiscal note and LRC confirmation. He dismissed fears about lost revenue on non-food items as "disinformation."
  • Nathan Sanderson (South Dakota Retailers Association) read the measure's language and pointed to existing state definitions of tobacco, vaping, and cannabis products that include "intended for human consumption." He argued the measure is not limited to food and could cost the state up to $646 million annually, threatening cuts to education, healthcare, and state services. He opposed any replacement with an income tax.
  • Sarah Rankin (South Dakota Municipal League) warned of a $1.6 million annual loss for Brookings and $51.5 million statewide if municipalities lose the authority to tax consumables. She noted that 75 municipalities have passed resolutions opposing IM 28 and that the Attorney General's explanation did not guarantee municipal exemption, calling the measure "poorly written."
  • Senator Tim Reed (District 7) explained that any legislative fix to restore taxes after passage would require a two-thirds supermajority, making it difficult. He also warned that IM 28 could conflict with the Streamlined Sales Tax Agreement, jeopardizing remote sales tax collections critical to city budgets.
  • Stephanie Mason (Brookings Economic Development Corporation and Chamber) opposed IM 28, citing a projected 46.5% reduction in state sales tax revenue and negative impacts on education, health services, and municipal services like law enforcement and parks.

Council Questions & Clarifications

  • Councilmember Nick Wendell asked about likely legislative and judicial paths if IM 28 passes. Weiland argued no clarification is needed, while Sanderson and Reed predicted concurrent lawsuits and legislative action, with potential stays or confusion before July 1, 2025 implementation.
  • Councilmember Andrew Rasmussen inquired about individual savings (estimated $500–600 per family annually) and the process for Brookings to continue its 2% local tax. City Attorney Steve Britzman indicated the local ordinance would likely remain in effect without further action.
  • City Manager Paul Briseno asked about the $1.6 million impact figure; Rankin confirmed it was conservative and based on original estimates.

Key Outcomes

  • No resolution was passed; the council did not take a position on IM 28.
  • The session served as a public information forum ahead of the November 5, 2024, election.
  • The council will hold a budget study session on September 24, 2024.

Meeting Transcript

Okay, call the order or the meeting to order. Please stand for the Pledge of Allegiance. Thank you all for attending tonight. Will the city clerk please do the roll? There are six council members present, Mr. Mayor, Councilmember Brianna Duranathone, and Councilmember Specker is absent. Thank you. Okay. Action on improved the agenda. Entertain a motion to approve the agenda. So moved. Second. Please call the roll. Avery. Hi. Doran? Hi. Neemeyer. Hi. Rasmussen. Hi. Tilton Byrne. Hi. Wendell. Hi. All right. We get to move on. Open forum. Is there any member of the public who wishes to address the council on an item not listed on tonight's agenda? Okay. Seeing none, we'll move on. Item five. The reason why we're here this evening. Discussion on IM 28 prohibiting taxes on anything sold for human consumption. Just so you all know, tomorrow our tonight's video will be available first thing tomorrow morning. So if you uh want to watch it again or let everybody else that missed it, that it will be available. All right. From there, Paul Brusino, our city manager, will present this item. Thank you, Mayor. City uh council members, mayor. Uh this and this item was brought forward at a request by the city council as an opportunity to inform the public on IM 28. This course is a ballot measured for November 5th on prohibiting certain taxes on consumables. For the presentation tonight, we have Rick Wyland, uh, the sponsor of IM 28. Nathan Sanderson, executive director of the South Dakota Retailers Association. Sarah Rankin, executive director of the League of Municipalities, Tim Reed, District 7 Senator, and Stephanie Mason, Vice President of Economic Development and Operations, and there might be a few other people that want to speak to the item. So with that said, would uh probably turn it over to Rick to go ahead and present his items to the to the council and to the public pertaining to uh the sponsorship of IM28, and then we'll transfer it over to Nathan to speak to the items. Thank you for uh the invitation, uh Paul and uh the council for giving me an opportunity to tell you our side of the story. There's always two sides to a story. You probably heard a lot from the other side, and I'm gonna try to address some of those uh issues that have been raised. But first of all, I am 28 um simply removes the state's sales tax on food.

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