Duxbury v. Harding

AMUNDSON, Justice

(concurring in part and dissenting in part).

I concur with the majority’s position on Issues 2 and 3.

The property tax credit legislation was obviously ushered in by the legislature’s enactment of the property tax freeze in 1989. See SDCL ch. 10-12B. Since this 1989 legislation was repealed as of January 1, 1992, it was obvious that the citizens of this state would be looking at property taxes which could increase close to the boiling point.* This legislation (H.B. 1090) would basically ease the pain of these sky*748rocketing taxes on the taxpayers who provide the fuel for the engines of state and local governmental entities.

The majority would erase the relief granted by this legislation to the taxpayers of this state. This court in State ex rel. Oster v. Jorgensen, 81 S.D. 447, 456-57, 136 N.W.2d 870, 875 (1965), dealt with an attack on the general appropriation bill passed by the legislature in 1965 and held as follows:

As the functions of state government cover a wide range of activities involving the public peace, health, safety, and welfare its ordinary expenses cannot fairly be compared or confined to the ordinary expenses of a private business enterprise. They are of a different nature and must change from time to time to meet differing needs and conditions. In other words the unusual and extraordinary may become usual and ordinary. The expanding cost of various health and welfare programs is an example. Another, is the appropriations which have been regularly made since 1941 to equalize taxation and to relieve distress in counties and school districts having an abundance of nontaxable state owned school and endowment lands within their boundaries. Therefore, no inflexible rule can be written which will forever clarify and solidify the distinction between “ordinary”, “current” and “extraordinary” expenses of state government. The line of demarcation is not clear, distinct, or static. Much must be left to the wisdom, integrity, and good judgment of our legislators. (Emphasis added.)

It is an accurate statement to say that functions of state government change over time in view of the fact that the state budget being considered in Jorgenson was in the amount of 62 plus million dollars (General Appropriation Act, ch. 277, 1965 S.D. Laws 382), and the 1992 appropriation bill, which is under consideration in this case, deals with the expenditure of 539 plus million dollars of state funds (General Appropriations Act, ch. 35, 1992 S.D. Laws 57).

House Bill 1090 sends money back to the counties in South Dakota to replace funds that otherwise would have been received from the taxpayers. A taxpayer under this legislation receives a credit against his tax bill from the county. What is the majority of the taxes collected in each county earmarked for? The answer is simple — education. Therefore, the majority of the monies appropriated under this legislation is in essence additional state aid to our education system. Is this an ordinary expense of state government? I dare say “yes” in view of the other 160 million dollars so dedicated in the appropriation bill. Further, in view of the appropriation for economic development of this state contained in the general appropriation bill, the percentage of the funds which are being sent back for economic development within each county is also an ordinary expense of state government, since economic development certainly is a benefit to the state as well as each county. It certainly is obvious that working to develop economic base for this state is a competitive business, which certainly necessitates the expenditure of public funds.

In conclusion, the petitioners argue that this court is to safeguard the citizens of this state from the abuses of the legislature and executive branches of government. There is no question that is the role of this separate branch of government. The problem this justice has is finding an abuse in House Bill 1090. This legislation provides for the benefit of taxpayers rather than for the detriment. Further, it seems to be an exercise of good judgment to allow for credit when sending this additional money back to aid the education of the students of this state rather than just sending it back as merely more money to spend on whatever, with any amount of relief to the taxpayers being forsaken.

Article XII, § 2 of our state constitution is to safeguard public revenues from unwise or imprudent uses. See State ex rel. Mills v. Wilder, 73 S.D. 330, 42 N.W.2d 891 (1950); State ex rel. Jensen v. Kelly, 65 S.D. 345, 274 N.W. 319 (1937); In re Limitation of Taxation, 3 S.D. 456, 54 N.W. *749417 (1893). This case does not involve an unwise or imprudent expenditure of public funds nor depict an unwise, bad faith, or ill-advised exercise of the legislative prerogative. Therefore, the judicial fortress should not block- this relief to the taxpayers, however minimal. The permanent writ on Issue I should be denied and I would do so.

This has obviously been the case in certain areas of the state where tax entities have proposed increases ranging from 20% to 70% for 1993.