South Heart sales tax could jump to 2 percentSOUTH HEART — A South Heart resident is concerned city leaders might raise the sales tax, but leaders say the proposed tax amount can only go down.
SOUTH HEART — A South Heart resident is concerned city leaders might raise the sales tax, but leaders say the proposed tax amount can only go down.
Starting as early as Oct. 1, residents could see a 2 percent city sales tax with a maximum amount of $50 on any single purchase, the town’s Home Rule Committee said during Wednesday’s public hearing at South Heart City Hall. But 2 percent may be more than enough.
“If 2 percent is coming in and it’s way more than the city needs, it can always be backed off also,” South Heart Home Rule Committee member Steve Finsaas said.
Justin Sadowsky, who represented Kuntz Sandblasting at the meeting, is concerned the proposed tax is set too high.
“We do a lot of business, and I can see me having to raise prices,” Sadowsky said. “That was one of the reasons we moved here, was to be a little more competitive.”
Sadowsky added that Dickinson’s sales tax is set at 1.5 percent, and thinks South Heart should follow suit.
Committee members said a 2 percent sales tax is necessary, adding that it would be a step in the right direction for South Heart.
Finsaas said the tax would be used to fund “upkeep, maintenance and protection of the city.”
“We didn’t want to set (the tax) at 1 percent and then find out next year that this isn’t enough,” Finsaas said. “We thought, let’s just do it and be done and move on so that we’re in a position where we know that we can take care of things.”
Jayme Lefor of South Heart said Dickinson can afford to have a 1.5 percent sales tax because there are so many businesses. South Heart has six businesses, he added.
“With that 1.5 percent, they’re going to get a lot more money coming in,” Lefor said.
Finsaas thanked Sadowsky for his concern, and said the board would take all public comments under advisement.
Additionally, committee members said Belfield and New England have a 2 percent sales tax. If South Heart’s proposed tax goes through, 25 percent would go toward parks and recreation, with the remaining 75 percent going toward city upkeep and hiring a police officer.