Liberty Rising: The Plan to End Property May 10th 4pm

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⚡ Taxes: Mechanics and Impact of the Core GRT Plan

🏛️ SEAL SD Explains How It Works

At SealSD.com, we’re committed to ensuring South Dakotans understand the Core GRT Plan—part of the Maximum Liberty Plan (Plan 2)—which replaces all state taxes with a single 5% Gross Receipts Tax (GRT), generating $3.6 billion and saving you $3,000–$5,000 annually by eliminating property taxes. This page dives into the mechanics of the GRT—how it’s calculated, collected, and distributed—and explores its impact on businesses, homeowners, and renters, providing clarity on how this plan delivers financial freedom while supporting key sectors.

🔍 Mechanics: How the GRT Works

The GRT is a straightforward tax on business revenue, designed to simplify South Dakota’s tax system while ensuring fairness and transparency:

  • Tax Base: The GRT applies to all gross business revenue in South Dakota, estimated at $72 billion annually. This includes all sales, services, and other receipts, with no deductions for expenses, unlike a corporate income tax (April 16, 2025, 15:19).
  • Rate and Revenue: At a 5% rate, the GRT generates $3.6 billion annually, exceeding the $3.5042 billion from current taxes (sales taxes: $2.097 billion, property taxes: $1.6 billion, other fees: $628.2 million). This ensures funding for schools ($960 million), local governments ($1.5 billion), and state services ($1.14 billion), with a $95.8 million surplus (Page 16: Implementation Plan).
  • Collection Process: Businesses file GRT payments quarterly through an online portal managed by the South Dakota Department of Revenue, reducing administrative complexity compared to multi-tax filings (April 16, 2025, 15:19).
  • Pass-Through Estimates: Businesses may pass on 20–50% of the GRT cost to consumers, depending on market conditions. On a $40 purchase, this means $1.00 (2.5%) added, compared to $2.60 with the old 6.5% sales tax (Page 13: Deep Dive: Will Prices Go Up?).

Analogy for Clarity: The GRT is like a picnic cake fee—every picnic stand pays 5% of their picnic earnings, making $3.6 billion in picnic cake slices, which we share fairly for schools, picnic towns, and picnic helpers, with extra frosting left over!

💰 Impact: Who Benefits and How

The Core GRT Plan’s simplified tax structure impacts businesses, homeowners, and renters, delivering savings and fairness across South Dakota:

  • Businesses: Businesses save $5,000–$50,000 annually on property taxes, offsetting GRT costs. For a business with $500,000 in revenue, the GRT is $25,000, but property tax savings often exceed this, reducing the need to raise prices (Page 13: Deep Dive: Will Prices Go Up?).
  • Homeowners: Homeowners save $3,000–$5,000 annually by eliminating property taxes. A Sioux Falls homeowner with a $300,000 home saves $4,500 (1.5% rate), with a net gain of $4,750 after rebates and GRT pass-through costs (Page 10: How It Affects the Average Homeowner).
  • Renters: Renters benefit as landlords, with lower property tax costs, are less likely to raise rents, ensuring indirect savings across communities (Page 10: How It Affects the Average Homeowner).
  • Exemptions: Small businesses under $100,000 in sales, veteran-owned businesses up to $200,000 ($21.75 million cost), senior-owned businesses up to $150,000 ($5.97 million cost), and military families (100% exempt, $4.78 million cost) receive targeted relief, totaling $32.5 million in exemptions (Page 25: Taxes).

Analogy for Clarity: The GRT helps everyone at the picnic—picnic stands save $5,000 on picnic spot fees, picnic tent owners keep $4,500, picnic renters don’t pay more, and picnic heroes get free picnic passes, making the picnic fair for all!

💡 Why It Matters: A Fair and Transparent Tax System

The Core GRT Plan’s mechanics—a 5% tax on $72 billion in business revenue, collected quarterly, with a 20–50% pass-through—ensure a simple, transparent system that generates $3.6 billion while saving $1.6 billion in property taxes. Its impact benefits businesses, homeowners, and renters, with exemptions ensuring fairness for small businesses, veterans, seniors, and military families. By replacing a complex, burdensome tax system with a streamlined GRT, this plan delivers financial freedom, aligns with South Dakota’s liberty-focused values, and paves the way for a future where your hard-earned money stays in your pocket.

Analogy for Clarity: The GRT is a picnic game-changer—everyone chips in a little picnic cake fee, saving $1.6 billion in picnic spot fees, and the picnic rules make sure picnic stands, tent owners, and heroes all win, keeping the picnic free and fair!

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