SB 216 Vs Seal SD Plan

April 5, 2025
Seal SD Liberty

📊 SB 216 vs. Core GRT Plan: A Battle for South Dakota’s Tax Freedom

🏛️ Comparing Property Tax Relief for South Dakotans – April 5, 2025

South Dakota is at a crossroads in the fight for tax relief. On one side, we have Senate Bill 216 (SB 216), signed into law in March 2025, aiming to cap property tax growth. On the other, the Core GRT Plan—part of the Maximum Liberty Plan (Plan 2)—proposes a bold overhaul to eliminate all taxes with a 5% Gross Receipts Tax (GRT). Let’s break down both plans, see how they impact South Dakotans (including in Custer County), and decide which one truly delivers liberty and freedom for the people.

🔍 Digging Into the Plans

SB 216: The Current Property Tax Cap

SB 216, effective from 2025 for five years, is South Dakota’s enacted property tax relief measure:

  • 📈 3% Assessment Cap: Limits annual increases in assessed value for owner-occupied homes to 3% countywide, applied when taxes are payable (e.g., 2025 taxes based on 2024 assessments).
  • ⏳ Duration: Temporary, expiring after 2029 taxes payable.
  • 🏠 Scope: Only owner-occupied homes, leaving commercial, agricultural, and second homes uncapped.
  • 🎯 Intent: Ease rapid tax hikes from soaring home values (42% statewide from 2019–2023), especially post-COVID [web:15⁊].

In Custer County, with a median home value of ~$206,902 (2024 estimate) and a 1.26% effective rate, a 9% value increase (recent trend) would normally add ~$18,600 to the taxable base (~$234 tax hike). The 3% cap limits this to ~$6,200 (~$78 tax hike), assuming stable levies [web:6⁊][web:12⁊].

Analogy for Clarity: SB 216 is like putting a speed limit on a runaway picnic cart—it slows down the property tax climb to 3% a year, but only for homeowners, leaving farmers and businesses to deal with the full speed.

Core GRT Plan: Total Tax Freedom

The Core GRT Plan replaces all taxes with a single 5% GRT, raising $3.6 billion with a $95.8 million surplus, focusing on statewide relief:

  • 💥 Eliminate All Property Taxes: Removes $1.6 billion in property taxes state-wide, saving $3,000-$5,000 per household—no tax bills for any property type.
  • ⏳ Duration: Permanent, with no expiration.
  • 🏡 Scope: Universal—covers all properties: residential, commercial, agricultural, and second homes.
  • 🎯 Intent: Deliver maximum tax freedom by replacing all taxes with one fair GRT, ensuring equity and simplicity.

In Custer County, a $206,902 home currently pays ~$2,607 in taxes (1.26% rate). Under the Core GRT Plan, this drops to $0—a $2,607 annual saving per household, benefiting all property owners, including businesses and farmers [web:12⁊].

Analogy for Clarity: The Core GRT Plan is like clearing all the picnic fees with one $5 cake that everyone shares—it wipes out property taxes for every South Dakotan, making the picnic free for all.

⚖️ Long-Term Analysis: SB 216 vs. Core GRT Plan

Let’s compare these plans over a 10-year horizon (2025–2034), focusing on tax relief, equity, sustainability, and Custer County impacts, to see which delivers more liberty and freedom for South Dakotans.

1. Tax Relief Magnitude

  • SB 216: Caps assessment growth at 3%, slowing but not eliminating tax increases. A $206,902 Custer County home grows to $277,194 by 2034 (3% compounded), with taxes at ~$3,492 (1.26% rate, no levy hike). That’s a ~$885 increase from 2024’s $2,607. Compared to an uncapped 9% growth (~$550,000, $6,930 tax), SB 216 saves ~$3,438 over 10 years, but taxes still rise 34%.
  • Core GRT Plan: Eliminates property taxes entirely, reducing the tax bill to $0 permanently. That same Custer County home saves $2,607 annually, or $26,070 over 10 years—a ~$22,632 better outcome than SB 216’s 2034 tax level.

Edge: Core GRT Plan. It delivers immediate, permanent relief, saving South Dakotans ~$2,000–$3,000 more per year than SB 216’s cap, which only slows the inevitable tax creep.

2. Scope and Equity

  • SB 216: Only owner-occupied homes get the cap, leaving ~30–40% of Custer County properties (commercial, agricultural, second homes) exposed to uncapped increases. This shifts the burden onto businesses and non-residents, a concern in a tourism-heavy area like Custer County, where second homes and commercial properties are vital [web:0⁊][web:6⁊].
  • Core GRT Plan: Universal relief—no property taxes for any property type, ensuring fairness for homeowners, farmers, and businesses across South Dakota, including in Custer County where tourism drives economic balance.

Edge: Core GRT Plan. Its universal scope prevents tax shifts, promoting equity and supporting Custer County’s diverse property landscape, aligning with liberty for all.

3. Duration and Stability

  • SB 216: Temporary, expiring in 2029. Post-2029, uncapped growth (e.g., 9%) could spike taxes (e.g., $277,194 to $439,000 in five years, ~$5,531 tax), erasing gains and creating uncertainty for South Dakotans [web:0⁊].
  • Core GRT Plan: Permanent elimination of property taxes, offering predictable, lifelong relief. Families can plan their finances without expecting a 2030 tax cliff.

Edge: Core GRT Plan. Permanent relief ensures long-term stability and freedom, while SB 216’s temporary cap leaves South Dakotans vulnerable to future tax hikes.

4. Revenue Sustainability

  • SB 216: Preserves more local revenue by capping fewer properties and allowing levy flexibility. Custer County’s ~$10–15 million annual property tax revenue (estimated) sees moderate pressure, but levy hikes (e.g., 0.05 points/year) can offset losses, potentially negating homeowner relief [web:12⁊][web:17⁊].
  • Core GRT Plan: Replaces $1.6 billion in property taxes with GRT revenue, redistributing funds to local governments ($1.5 billion statewide). The $95.8 million surplus supports rebates, but local budgets may face initial strain, relying on state-level adjustments to maintain services.

Edge: SB 216. It poses less immediate risk to local revenue, though levy increases could undermine relief, reducing its liberty impact. The Core GRT Plan’s broader tax replacement requires careful implementation to ensure sustainability.

5. Custer County Impact

  • SB 216: Slows tax hikes for homeowners (e.g., ~$78/year vs. $234 uncapped), but levy increases (historical ~0.05–0.11 points) could push bills up 5–7% annually, reaching $3,800–$4,000 by 2034. Non-residents and businesses face steeper rises, impacting Custer County’s tourism economy [web:6⁊].
  • Core GRT Plan: Eliminates property taxes entirely, saving $2,607 per household annually in 2025, holding at $0 through 2034. All property owners benefit, supporting tourism and rural stability in Custer County.

Edge: Core GRT Plan. It delivers deeper, broader relief, saving Custer County households ~$1,300–$2,000 more annually than SB 216, and supports the local economy by including all property types.

🏆 Who Wins? What’s Better for Liberty and South Dakotans?

The Core GRT Plan is the clear winner for liberty and the people of South Dakota. It delivers immediate, permanent relief by eliminating property taxes entirely, saving households $3,000–$5,000 annually—far more than SB 216’s capped increases, which still leave taxes rising (e.g., $3,492 by 2034 in Custer County). The universal scope ensures fairness for all South Dakotans, preventing tax shifts that hurt businesses and non-residents, especially in tourism-driven areas like Custer County. Its permanence offers stability, aligning with the principle of liberty by giving families control over their finances without the fear of future tax spikes.

SB 216, while a step forward, falls short. Its temporary cap slows tax growth but doesn’t stop it, and the 2029 expiration risks a tax cliff that could erase gains. By excluding commercial and agricultural properties, it creates inequity, undermining the freedom of all South Dakotans to thrive. The Core GRT Plan’s bold approach—replacing all taxes with a single GRT—better embodies the spirit of liberty, ensuring every resident benefits and can plan for a future free from property tax burdens.

Join the Fight for Liberty: The Core GRT Plan is our path to true tax freedom. Visit sealSD.com to join our next Facebook Live Q&A on May 3, 2025, at 2:00 PM, or our weekly streams every Wednesday in April at 7 PM MDT to learn more and help shape this plan for all South Dakotans!

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