Legislative Roadmap to Implement the Gross Receipts Tax (GRT), Eliminate Property Tax, and Establish the South Dakota Department of Government Efficiency (SD-DOGE)
This roadmap outlines the step-by-step process for passing legislation, ensuring legal protections, and transitioning from property tax to a 2.5% Gross Receipts Tax (GRT) within two years, while reducing government spending and eliminating wasteful programs through SD-DOGE.
Phase 1: Legislative Drafting & Legal Framework (Months 1-6)
1. Draft Constitutional Amendment & Legislation
- Amend the South Dakota Constitution to permanently eliminate property taxes.
- Enact a 2.5% Gross Receipts Tax (GRT) law to replace property tax revenue.
- Create the South Dakota Department of Government Efficiency (SD-DOGE) to oversee the elimination of wasteful government spending and ensure fiscal responsibility.
- Define strict legal spending limits to ensure that GRT revenue can only be used for services previously funded by property tax.
- Specify required government spending reductions to balance the general fund and reduce unnecessary bureaucracy.
2. Build Political & Public Support
- Secure legislative sponsorship from key lawmakers in both the House and Senate.
- Partner with business organizations, farmers, property owners, and taxpayer advocacy groups to advocate for the plan.
- Hold public hearings & town halls across South Dakota to educate voters on the benefits.
- Form a coalition of local and county leaders to support the transition.
3. Legal Protections Against Future Tax Increases
- Cap the GRT at 2.5%, requiring ⅔ legislative approval + voter referendum for any increase.
- Ban property tax reinstatement without a constitutional amendment requiring voter approval.
- Require public financial reporting to show exactly how GRT revenue is being used each year.
Phase 2: Legislative Approval & Voter Referendum (Months 7-12)
4. Introduce & Pass Legislation in State Legislature
- Bill is introduced in the South Dakota House & Senate.
- Public hearings and economic impact studies are presented.
- Majority approval is required in both chambers for the bill to pass.
5. Place the Constitutional Amendment on the Ballot
- Once passed by the legislature, the amendment goes to statewide voter referendum.
- SD-DOGE is established to begin identifying inefficiencies and planning spending reductions before the tax shift begins.
- Voter education campaign launched to explain how the tax shift eliminates property taxes, cuts waste, and shrinks government.
- Public debates and policy forums to address concerns and build voter trust.
6. Voter Approval in Statewide Election
- A simple majority vote (50%+1) is required to amend the constitution.
- If passed, South Dakota legally eliminates property tax and shifts to the GRT system.
Phase 3: Transition & Implementation (Years 1-2)
7. South Dakota Department of Government Efficiency (SD-DOGE) Takes Full Effect
- SD-DOGE identifies and eliminates redundant government offices.
- Conducts agency performance reviews to determine which services can be streamlined, privatized, or eliminated.
- Establishes hard limits on state spending growth to prevent future tax increases.
8. Phase Out Property Tax Over 2 Years
| Year | Property Tax Reduction | GRT Rate Implementation | SD-DOGE Action Items |
|---|---|---|---|
| Year 1 | 50% Reduction | 1.25% GRT | Identify wasteful spending, close county assessor offices |
| Year 2 | 100% Reduction | 2.5% GRT | Complete transition, implement efficiency measures |
9. Implement Spending Reductions & Eliminate Unnecessary Offices
- Abolish county assessor offices, property tax collection agencies, and appeal boards.
- Reduce state bureaucracy, cutting non-essential positions and limiting administrative overhead.
- Freeze unnecessary government hiring, preventing agencies from growing beyond their efficiency limits.
- Privatize or consolidate underperforming state programs as recommended by SD-DOGE.
10. Monitor & Audit the Transition
- SD-DOGE conducts annual efficiency reviews to ensure spending remains low.
- Public reporting on GRT revenue use and spending cuts.
- Automatic budget reductions if spending exceeds the efficiency targets.
Final Legislative Protections
✅ No new taxes beyond the GRT.
✅ GRT capped at 2.5% without voter approval.
✅ Permanent ban on property tax reinstatement.
✅ Mandatory financial transparency.
✅ SD-DOGE continuously reviews and cuts unnecessary government spending.
Expected Outcomes
✔ Permanently eliminates property taxes.
✔ Shrinks the size of government.
✔ Ends bureaucratic inefficiencies and redundant agencies.
✔ Ensures no one loses their home due to unpaid taxes.
✔ Boosts economic growth by reducing tax burdens.
✔ Maintains fiscal responsibility through SD-DOGE oversight.
Conclusion: A Clear, Legally Sound Plan for a Smaller, More Efficient Government
This roadmap not only eliminates property tax and replaces it with a stable, capped GRT but also establishes SD-DOGE as a permanent efficiency watchdog to prevent wasteful spending and unnecessary tax increases.