South Dakota GRT Plan – Public Handout (Ready for Print & Presentation)
📖 What is GRT and Why Are We Using It?
GRT = Gross Receipts Tax.
We are replacing only the property tax portion of South Dakota’s funding system with a simple, transparent 2.5% Gross Receipts Tax (GRT).
✅ We are not replacing the entire state tax system — only the unfair property tax.
✅ GRT is a small, predictable tax on sales and services that fully covers what property tax used to fund.
✅ This means no more threat of losing your home, while keeping schools and local services fully funded.
This handout shows you exactly how GRT replaces property tax revenue, protects essential services, and keeps government accountable.
South Dakota Property Tax Replacement Plan
Protecting Schools, Local Services, and Taxpayers
What We’re Doing:
- ✅ Replacing property tax with a 2.5% Gross Receipts Tax (GRT).
- ✅ Fully funding schools and essential local services.
- ✅ Shrinking government and eliminating waste.
- ✅ Legally protecting you from future tax hikes.
How the Money Works
Total GRT Revenue: ~$1.625 Billion / Year
| Use | % of GRT | Amount Approx. |
|---|---|---|
| Schools (K-12 + Community Ed) | 60% | ~$975 Million |
| Local Governments & Counties | 30% | ~$488 Million |
| Public Infrastructure | 10% | ~$162 Million |
✅ Total: ~$1.625 Billion — matches property tax revenue
Your Local Services & Schools Are Protected
Schools:
- 🔒 60% of GRT legally locked for education.
- 🎓 Fully replaces school property tax funding.
- 🏫 No budget cuts, no surprises.
Local Services:
- 🚓 Police, fire, roads, libraries fully funded.
- 🏛️ No budget gaps for counties and towns.
- 🔍 SD-DOGE oversight keeps services accountable.
Local Government Budgeting:
- 📊 Local municipalities must maintain responsible, effective budgets under the new system.
- 🏛️ SD-DOGE ensures oversight to prevent wasteful spending.
- 📝 GRT funding flow is constitutionally protected to guarantee stability.
Renters Also Win
🧩 Even if you don’t own property, you still benefit!
✅ Landlords pass property taxes onto renters through higher rents. ✅ Without property tax, rental rates stabilize and future increases are curbed. ✅ More disposable income stays in your pocket.
Boosting Local Economies & Tourism
💡 More Money Stays Local:
- 💰 Savings from eliminated property taxes flow back into our local businesses and economies.
- 🏞️ Tourism stays strong — visitors help fund our services through GRT.
- 📈 Local reinvestment means more jobs, better services, and thriving communities.
Built-In Safeguards: Power to the People
We understand the concerns about local politicians and future changes. That’s why this plan uses a three-path strategy to protect South Dakotans:
- ✅ Legislative route — championed in Pierre, with accountability.
- ✅ Citizen-driven constitutional amendment — so the people control the outcome.
- ✅ Hybrid approach — legislation with constitutional protections to lock it in.
No matter what, the people have the final say. This ensures the GRT system stays locked, accountable, and fully protected from future misuse or political games.
Learn more about our Implementation Strategies.
Government Waste? Gone.
💡 Estimated Efficiency Savings: ~$350 Million / Year
Through South Dakota Department of Government Efficiency (SD-DOGE):
- ❌ Eliminate property tax offices, county assessors, equalization offices, and all agencies involved in the property tax process.
- ✅ Streamline government services.
- ✅ Prevent future overspending.
- ✅ Direct savings back to taxpayers.
Locked Protections Against Future Tax Increases
🛡️ GRT rate capped at 2.5%.
🗳️ Any increase requires voter approval + supermajority legislative vote.
🚫 Permanent ban on property tax reinstatement.
📜 Mandatory financial audits by SD-DOGE.
💡 What Happens If We Collect More Than Needed?
✅ Surplus funds must be used to lower the GRT rate, pay down state obligations, or return directly to taxpayers.
✅ No slush funds. No bureaucracy. Surplus belongs to the people.
✅ SD-DOGE ensures every dollar is accounted for and publicly reported.
🚫 No New Programs:
✅ Funds from GRT cannot be used to start new government programs.
✅ The system is designed for efficiency and stability, not expansion.
What This Means For You
✔️ No more property tax. ✔️ No risk of losing your home over taxes. ✔️ Renters and homeowners alike benefit. ✔️ Schools and services stay fully funded. ✔️ Local economies and tourism thrive. ✔️ Government made lean and efficient. ✔️ Simple, transparent, and accountable tax system.
Learn more. Get involved. Share the facts.
Together, we protect our homes, our schools, and our future.
Designed for community meetings, print distribution, and presentations.