Where the Money Goes

April 13, 2025
Seal SD Liberty

South Dakota GRT Plan: Where the Money Goes

Goodbye, property taxes. Hello, simple and fair funding.

The Gross Receipts Tax (GRT) is the engine that will fully replace property tax in South Dakota — with no cuts to schools, local services, or infrastructure.

Let’s break it down so you can see exactly how it works.

🔥 Upcoming Action: Liberty Forum April 19th, 2025!

🗓️ April 19th @ 2:00 PM — Rapid City First Assembly
Join the movement. Get the facts. Help us end property taxes for good.

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What is the GRT?

💡 Gross Receipts Tax (GRT):

  • ✅ A simple 2.5% tax on sales (not profits).
  • ✅ Farmers enjoy a reduced 1.5% rate.
  • ✅ Small businesses under $500,000 pay zero GRT.

🔍 Why it works: It spreads the load fairly across the economy — businesses contribute based on their success, not their property value.

Where Does the Money Go?

💰 GRT Fully Replaces Property Tax Revenue:

  • Total Annual Target: $1.625 billion
Use% of GRTAmount Approx.
Schools (K-12 + Community Ed)60%~ $975 million
Local Governments & Counties30%~ $488 million
Public Infrastructure10%~ $162 million

✅ Schools:

  • Locked-in funding — legally protected at 2024 levels (adjusted for inflation).

✅ Local Services:

  • Fully funded: police, fire, roads, libraries, and more.

✅ Infrastructure:

  • Reliable support for state projects without increasing taxes.

Built-In Safeguards

🛡️ GRT Rate Locked at 2.5%:

  • Cannot increase without two-thirds voter approval.

🛡️ Sales Tax Locked at 4.5%:

  • Same protections apply.

💸 Rebates for Surplus Funds:

  • If GRT brings in more than needed, surplus money is returned to taxpayers.

🧩 No Sneaky Spending:

  • GRT revenue is locked for essential services only.
  • No new programs can be created from GRT funds.

📖 Public Oversight:

  • SD-DOGE audits and transparent public reports ensure accountability.

How This Helps You

✅ Homeowners:

  • No more property tax bills. More money stays in your pocket.

✅ Farmers & Ranchers:

  • No taxes on land or equipment — only 1.5% on sales.

✅ Small Businesses:

  • Under $500,000 in sales? Pay zero GRT.

✅ Everyone:

  • Essential services stay funded.
  • Excess funds are rebated back to taxpayers.
  • Simpler system, fewer bureaucrats, more freedom.

Related Pages for Full Details

📋 See Main Tax Plan ➔

🗓️ See the 2-Year Plan ➔

🧩 Plain Text Constitutional Amendment ➔

❓ Read the FAQ ➔

👥 Join the Movement ➔

Let’s Fund South Dakota the Smart Way!

Your money stays in your community. Your services stay fully funded. You stay in control.

🚀 This is common sense South Dakota leadership. Let’s make it happen!