Rapid City property tax will increase with 2013 budget plan - KOTA Territory News

After much debate the Rapid City Council votes 6-4 to accept the Consumer Price Index-based tax increase as part of the 2013 budget.

The Consumer Price Index or CPI measures how much consumers pay for things over time.

Proponents on the city council say it's important to maintain the buying power of a dollar, but others look at it as an unnecessary tax increase.

There was a lot of discussion and even a motion to take only half the CPI as a compromise, but in the end the council voted for the full CPI approach.

"The truth of the matter is the taxpayers have been funding this city at a rate that has far exceeded the decrease in buying power," said ward two alderman Steve Laurenti.

"My support of the CPI of 3% is based upon the increasing cost of materials supply and labor that cost the city and its performance of its purpose of protecting the public's health and welfare and safety," said ward three alderman Jerry Wright.

Accepting the CPI as part of the 2013 budget will increase the average citizen's property tax by a little over a dollar a month, and will provide around $400,000 in tax revenue for the city.