Public Response: Liberty Forum Q&A

🚨🔥 PATRIOTS, THE WAR AGAINST TAXES HAS BEGUN! 🔥🚨 The Liberty Forum: End Property Taxes in Rapid City on April 19, 2025, was our opening volley—and the 15 warriors who showed up brought the HEAT! 💥 The feedback? Pure excitement, and South Dakotans are READY for action! With 22,400 views and 170 patriots strong, we’re shifting gears and evolving—this is only the beginning! Based on your feedback, we’re working on big plans, including a new single 5.41% Gross Receipts Tax (GRT) to unleash the ultimate tax freedom—stay tuned for more details! Big things are coming, and you’ll want to be part of this revolution! 🇺🇸

Thank You for Your Feedback

Thank you to the 15 attendees who joined us at the Liberty Forum on April 19, 2025, despite the challenging timing near Easter Sunday. We’re sorry the date’s historical significance—April 19th, marking the Battles of Lexington and Concord in 1775, the first shots of the American Revolution—didn’t resonate as we’d hoped. We’re encouraged by the positive reception and momentum, but we heard your concerns loud and clear. Below, we address the key questions raised about the SEAL SD Liberty GRT Plan (Plan 1), which proposed a 2.5% GRT, and provide detailed explanations. We invite your continued input as we refine this plan for South Dakotans.

Concern 1: Does the 2.5% GRT Generate Enough Revenue to Replace $1.6B in Property Taxes?

Attendee Concern: Attendees used the 2023 sales tax report, showing $33.05 billion in taxable sales, and calculated that a 2.5% GRT would only generate $826.25 million ($33.05 billion × 0.025), falling short of the $1.6 billion needed to replace property taxes by $773.75 million.

Our Response: The $826.25 million figure underestimates the GRT’s revenue because it uses the wrong base. A GRT isn’t applied to just taxable sales like a sales tax—it’s applied to all gross receipts, including sales, services, agriculture, and tourism. Plan 1 uses a $72 billion gross receipts base, based on South Dakota’s economic activity (estimated from the state’s $73.7 billion Gross State Product in 2023, scaled for 2027). At 2.5%, this generates $1.8 billion ($72 billion × 0.025), exceeding the $1.6 billion property tax replacement by $200 million, which we use for rebates (up to $325 per voter). The $1.6 billion property tax figure comes from state-wide assessments (South Dakota Department of Revenue estimates, adjusted for 2025).

Why the Confusion?: The 2023 taxable sales of $33.05 billion (South Dakota Retailers Association) only cover sales subject to sales tax, excluding exempt items like groceries. The GRT’s $72 billion base includes all business revenue, capturing more money to fund services without extra taxes.

Analogy for Clarity: Think of South Dakota’s money as a piggy bank. The old system had $1.6 billion in a little jar just for property taxes. Attendees thought a 2.5% GRT on $33.05 billion was like filling a small jar with only $826.25 million, not enough to replace that $1.6 billion. But our plan uses one big jar, the 2.5% GRT, on $72 billion—like collecting $1.8 billion in coins, enough to fill the property tax jar and have $200 million extra for picnic treats.

Concern 2: Will Businesses Raise Prices Due to the 2.5% GRT?

Attendee Concern: Some worried that businesses might raise prices to cover the 2.5% GRT, increasing costs for consumers.

Our Response: Businesses won’t need to raise prices significantly because they no longer pay property taxes, which saves them substantial amounts. For example, a Rapid City business paying $5,000 in property taxes annually (based on our estimate for small properties) saves that entire amount. The GRT on a $39.99 sale, like at Scheels, is only $1.00 ($39.99 × 0.025), far less than the savings. Plus, customers also save $3,000-$5,000 yearly on property taxes in Rapid City, giving them more money to spend, which helps businesses.

Analogy for Clarity: Businesses are like bakers who used to pay $5,000 to rent their shop. Now they don’t pay that rent, saving a lot. The 2.5% GRT fee is only $1.00 on a $40 cake, so they don’t need to charge you more—in fact, you might pay less because you have extra money to buy more cakes!

Concern 3: Will This Drive Businesses Out of South Dakota?

Attendee Concern: Some feared the GRT might push businesses out of South Dakota due to increased costs.

Our Response: The opposite is true—Plan 1 lowers overall taxes, making South Dakota more attractive for businesses. Businesses no longer pay property taxes on their buildings (e.g., $25,000-$50,000 for a large property in Rapid City), and the GRT at 2.5% is lower than the current 4.5%-6.5% sales tax rate. Customers also have more money to spend—$3,000-$5,000 more per year in Rapid City—boosting local sales by $10 million to $15 million. Lower taxes and increased consumer spending make South Dakota a better place for businesses to thrive, not leave.

Analogy for Clarity: South Dakota is like a fun club with a low $2.50 fee to join, cheaper than the old $6.50 fee. Businesses used to pay a big $25,000 fee to set up their tent, but now that’s gone. Plus, you have more money to spend at their tent, so they’ll want to stay and sell more snacks.

Concern 4: How Do Rural Communities Build Schools Without Local Taxes?

Attendee Concern: If rural communities can’t raise taxes locally, how can they build a school?

Our Response: With Plan 1, rural districts don’t need local taxes because the 2.5% GRT provides $1.8 billion state-wide. Of the $960 million for schools, rural districts like Harding County (250 students) get their share—about $1.73 million annually for operations. While Plan 1 focused on operations, we heard your feedback and are evolving to Plan 2, which will include grants for rural school projects. Stay tuned for details on how we’ll support building new schools while keeping taxes low!

Analogy for Clarity: Imagine South Dakota’s schools are like teams in a science fair. Small towns like Harding County get $1.73 million to keep their booth running with Plan 1. We’re working on Plan 2 to add prizes—like $5 million to build a robot lab if they do a great job—or $500,000 to buy better tools if they need help, so every team gets to shine.

Moving Forward

We’re sorry the timing near Easter Sunday and the date’s historical significance (April 19th, tied to the Battles of Lexington and Concord in 1775) didn’t resonate—we’ll adjust for future events. The positive reception and momentum show we’re on the right track, but we need your input to refine the plan’s practicality. Join us at our next Facebook Live Q&A to share your thoughts and help shape the SEAL SD Liberty Plan for all South Dakotans.