Every Purchase (not)

April 13, 2025
Seal SD Liberty

💬 Addressing Your Concerns About the Core GRT Plan

🗣️ A Friendly Response to a South Dakotan – April 21, 2025

Hi there! Thanks for asking about our plan to get rid of property taxes in South Dakota—I’m glad you think it sounds cool! You mentioned hearing you’d pay extra on every purchase with the GRT, and you’re wondering if that’s worth it to eliminate property taxes, especially for schools. I totally get why you’d want to make sure this doesn’t hurt your wallet or our kids’ education. Let’s clear things up with the Core GRT Plan, part of the Maximum Liberty Plan (Plan 2).

🔍 Understanding the GRT: No New Tax on Your Receipts

Here’s the good news: you won’t pay a new tax on every purchase you make, and there’s no additional tax showing up on receipts statewide. The Gross Receipts Tax (GRT) in our Core GRT Plan is a 5% tax businesses pay on their total sales—not something you pay directly as a customer. Businesses might pass on a small part of that cost through prices, but it’s minimal—like 50 cents extra on a $10 purchase. That’s less than the current sales tax, which can be 4.5% or more with local taxes, and it won’t appear as a new line item on your receipts—it’s built into the price. Plus, essentials like groceries, healthcare, and utilities are completely exempt from the GRT, so you won’t see any price increase there.

Analogy for Clarity: Think of the GRT as a picnic fee businesses pay to join the party—they might charge a tiny bit more for snacks, but it’s not a new fee on your picnic receipt. Your grocery picnic basket stays free, so you’re not paying extra for the essentials!

💰 Big Savings: Property Taxes Eliminated

Now, the really cool part: if you own a home, you’ll never pay property taxes again. That could save you hundreds or thousands each year—maybe $3,000 to $5,000 if you live in a place like Sioux Falls with a higher-value home. Even if you don’t own a home, you’ll likely save because renters might see smaller rent increases since landlords won’t have to pay property taxes either. So, you’re saving a lot more than any small price bump from the GRT, and you’ll have more money in your pocket to spend on what matters to you.

Analogy for Clarity: Imagine you’ve been paying a big $5 picnic fee every month just to keep your picnic spot—that’s $60 a year! With our plan, that fee is gone, saving you $60, while you might pay a tiny 50-cent fee for a picnic snack—way better deal, right?

🏫 School Funding: Protected and Secured

You also asked about school funding—that’s a great question, and I’m happy to reassure you. Right now, schools get about $960 million a year from property taxes, part of the $1.6 billion we collect statewide. The Core GRT Plan makes sure schools don’t lose a penny of that. The 5% GRT brings in $3.6 billion, and we’ve legally locked in that $960 million for schools, adjusted for inflation, so they’ll always have what they need. If the GRT doesn’t bring in enough in any year, the state has to use other funds—like surplus revenue—and cut non-essential spending first, not schools or services like roads and police. So, your schools are safe, and your kids will still have the resources they need.

Analogy for Clarity: Our picnic plan sets aside $960 million for the kids’ playground—no matter what, it’s locked in, like a promise written in picnic stone. If we run low on cake, we’ll use extra picnic treats to keep the playground funded!

🚀 Why It’s Worth It: A Real-Life Scenario

Let’s put this into a real-life scenario to show why this plan gives you more freedom. Say you’re part of a typical South Dakota family with a home. Right now, you might be paying an extra $400 a month in property taxes—either as part of your mortgage payment or as a big bill at the end of the year. That’s $4,800 a year, and it’s a heavy burden, especially if money’s tight. With the Core GRT Plan, you’d pay $0 in property taxes—saving you that $4,800 every year. Instead, you’d see a small portion of the 5% GRT passed on through prices on some purchases. Let’s say you spend $500 a month on things like clothes, dining out, or other non-exempt items—that’s $6,000 a year. The GRT might add 5% to those purchases if businesses pass on the full cost, which is $300 a year ($6,000 × 5%). So, you’re saving $4,800 on property taxes and only paying an extra $300 through the GRT—that’s a net savings of $4,500 a year! And here’s the liberty part: with property taxes gone, you’re free from the worry of losing your home if you can’t pay, and you keep more of your money to spend how you choose—not how the government decides.

Analogy for Clarity: Imagine paying $400 a month for a picnic spot—that’s $4,800 a year! At our picnic, you pay $0 for the spot, saving $4,800, and might spend an extra $300 on snacks over the year. That’s $4,500 more for your family to enjoy the picnic your way!

📊 Comparison: GRT Pass-Through vs. Property Taxes

Here’s a quick comparison to show why the small GRT pass-through is a better deal than property taxes:

  • Property Taxes (Current System): $4,800/year for a typical South Dakota family—$400/month, a heavy burden that risks your home if unpaid.
  • GRT Pass-Through (Core GRT Plan): ~$300/year in potential price increases on $6,000 of non-exempt purchases—$25/month, a tiny fraction of property taxes.
  • Net Savings: $4,800 – $300 = $4,500/year—more money in your pocket, less worry, and greater freedom.

Analogy for Clarity: Would you rather pay $400 a month for a picnic spot or $25 for a few extra snacks? Our picnic plan saves you $4,500 a year, so you can enjoy the picnic without stress!

🖊️ Join the Movement

This plan is all about giving you tax freedom while keeping our communities strong. You’ll save on property taxes, and any extra GRT money we collect will come back to you as a rebate at the end of the year. If you’d like to learn more, check out our full plan, or join us for our next Facebook Live Q&A to get involved. We’d love to have you on board!

🎥 Next Facebook Live Q&A: Coming Soon

  • 🗓️ Details TBD
  • 💬 Bring your questions. Be part of the solution.

📂 Learn More: (updating please wait)

🔗 Our Vision for South Dakota
🔗 End Property Tax: GRT Plan
🔗 Safeguards to Protect Homes
🔗 SD-DOGE: Our Government Watchdog
🔗 Join the Movement