South Dakota GRT Plan: Simple Funding Flow & Protection Summary
“Where Does the Money Go?” – GRT Visual Breakdown
Total Gross Receipts Tax (GRT) Revenue:
~$1.625 Billion / Year (2.5% Rate)
Allocation of GRT Revenue:
| Category | % of GRT | **Amount (Approx.) | Purpose |
|---|---|---|---|
| Schools (K-12 + Community Ed) | 60% | ~$975 Million | Teacher pay, classroom resources, facilities maintenance, school transportation, etc. |
| Local Governments & Counties | 30% | ~$488 Million | Roads, police, fire, libraries, county services, emergency services. |
| Public Infrastructure | 10% | ~$162 Million | Water systems, broadband, local construction projects, critical state infrastructure. |
✅ Total: ~$1.625 Billion (Matches Property Tax Replacement Need)
“Will Schools Lose Funding?”
No. Schools are not just funded, they are legally prioritized.
- 🔒 Legal Lockbox: 60% of all GRT revenue is reserved for education.
- 🎓 Fully Replaces Property Tax Dependency: Schools currently rely on ~$900M from property tax — our plan covers and slightly exceeds this.
- 🏫 Predictable, stable funding: No yearly assessment fluctuations. GRT is tied to economic activity.
“Will Local Services Be Cut?”
No. Essential services are fully maintained.
- 🚓 Fire, police, road crews, libraries — all continue to be funded.
- 🏛️ No shifting burden to cities or counties.
- 🔍 State oversight by SD-DOGE ensures local services remain intact.
“What About Efficiency Savings?”
🎯 Estimated Efficiency Gains: ~$350 Million / Year
Through SD-DOGE:
- ✅ Eliminate county assessors & tax offices (property tax administration no longer needed).
- ✅ Reduce state bureaucracy.
- ✅ Streamline service delivery.
- ✅ Direct savings back to taxpayers and essential services.
Important: These savings are a bonus, not required to fund schools or services.
“How Are We Protected from Future Tax Increases?”
- 🛡️ GRT rate locked at 2.5%.
- 🗳️ Any future increase requires voter approval + supermajority legislature approval.
- 📜 Permanent ban on property tax reinstatement.
- 🧾 Annual financial audits by SD-DOGE.
Bottom Line: Full Funding, Lower Burden, Leaner Government.
✔️ Schools and services fully funded, legally protected.
✔️ Homeowners protected — no more risk of losing property over taxes.
✔️ Government waste eliminated, savings returned to the people.
✔️ No new taxes or hidden fees.
✔️ Simple, transparent, efficient.
This one-page summary is designed for public meetings, handouts, and clear community discussions.
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