Tourism is a big deal in South Dakota—it brings in millions of visitors and billions of dollars every year, supporting jobs, businesses, and communities across the state. Jerry Odom’s plan to eliminate property taxes and replace them with a Gross Receipts Tax (GRT) makes tourism even more important. Here’s how tourism, including massive events like the Sturgis Motorcycle Rally, helps make this plan work while growing our economy.
How Tourism Helps South Dakota Thrive
South Dakota welcomes around 14 million visitors each year, and they spend about $4 billion on hotels, restaurants, attractions, and more. That money keeps our state strong, supporting jobs and local businesses. With the GRT plan, tourism will play a key role in replacing the $1.6 billion we currently get from property taxes—and more, bringing in $1.8 billion to ensure our state’s future.
Here’s how tourism helps:
- Brings in Revenue: South Dakota’s tourism industry generates about $4 billion each year, and with the GRT at 2.5%, this brings in $100 million annually for the state. That money helps fund schools, roads, and other services without property taxes, with extra revenue to spare.
- Attracts More Visitors and Businesses: No property taxes make South Dakota a better place for businesses like hotels and restaurants to set up shop. This can draw even more visitors, boosting GRT revenue over time. For example, if tourism grows to $5 billion a year, that’s $125 million in GRT—an extra $25 million to support our communities.
- Creates Jobs and Growth: More visitors mean more jobs in hotels, restaurants, and shops. Plus, new businesses might come to South Dakota because they won’t pay property taxes, creating opportunities for everyone.
Events Like the Sturgis Rally: A Tourism Powerhouse
Big events like the Sturgis Motorcycle Rally bring thousands of visitors to South Dakota every year, and they’ll play a key role in making this plan work. The Sturgis Rally, one of the world’s largest motorcycle gatherings, draws around 550,000 people on average over 10 days in August. For its 85th anniversary in 2025, we expect 650,000 to 700,000 visitors, thanks to the milestone celebration.
The rally is a tourism powerhouse for South Dakota:
- Boosts Tourism Revenue: The Sturgis Rally alone brings over $800 million to South Dakota’s economy each year. With the GRT at 2.5%, the 2025 rally could bring in $2 to $3 million in GRT revenue, helping fund schools, roads, and other services. That’s a big chunk of the $100 million we expect from tourism every year.
- Attracts More Visitors and Businesses: No property taxes make South Dakota a better place for tourism businesses to grow. Hotels, restaurants, and campgrounds save money, which can lower prices or improve services, drawing even more visitors to events like Sturgis. This means more GRT revenue over time—if tourism grows to $5 billion a year, that’s $125 million for our state.
- More Vendors, More Growth: The Sturgis Rally had 896 temporary vendors in 2024, and many qualify for the $100,000 GRT exemption, saving them money. Larger vendors pay less than they do now (2.5% GRT vs. 7.2% in combined taxes), which could bring more vendors to the rally, increasing sales and GRT revenue. More vendors mean more jobs and economic growth for South Dakota.
How the GRT Plan Helps Tourism
This plan lowers taxes for businesses during events like Sturgis, which might mean a little less tax money at first compared to the current system (where businesses pay up to 7.2% in combined taxes). But with the GRT bringing in $1.8 billion overall—$200 million more than we need—there’s no risk of a shortfall. By making South Dakota a tax-friendly place to live, visit, and do business, we’ll attract more people, vendors, and tourists in the long run—growing our economy and ensuring the GRT keeps our state strong. For example, a hotel in Sturgis might save $10,000 a year on property taxes, allowing it to lower rates or add more rooms, bringing in more visitors year-round.
What’s Next?
- Check the Details: We’ll keep studying how this plan affects tourism and other industries to ensure fairness.
- Join the Movement: On April 19, 2025, we’ll launch a signature collection campaign to get this plan on the 2026 ballot—help us secure 35,017 signatures by May 2026!
- Your Vote Counts: This plan needs a big “yes” from South Dakotans in November 2026—stay tuned for how you can help!
Why This Rocks for South Dakota Tourism
Tourism is a key part of South Dakota’s future, and this plan makes it even stronger. By eliminating property taxes, we’ll bring more visitors, vendors, and businesses to our state, boosting events like the Sturgis Rally and growing our economy. The GRT ensures we have the funds to keep our communities strong—without burdening homeowners. Let’s make South Dakota the best place to visit and live!