Core GRT Plan Review & Revenue Verification
This page provides an independent review and verification of the projected revenue and allocations outlined in the Core GRT Plan.
Overview of the Core GRT Plan
Objective: Replace all existing state taxes and fees — including property taxes, sales tax, and state fees — with a unified 5% Gross Receipts Tax (GRT).
Core Estimate: Apply a 5% GRT to South Dakota’s total business revenue base of $72 billion, which is projected to generate $3.6 billion annually.
Revenue Verification
GRT Calculation:
5% of $72 billion =
72,000,000,000×0.05=3,600,000,00072,000,000,000 \times 0.05 = 3,600,000,000
Verified: ✔️ $3.6 billion in annual revenue is mathematically accurate.
Allocation Breakdown (Verified)
| Use | Amount | % of Total GRT |
|---|---|---|
| Schools | $960 million | 26.67% |
| Local Governments | $1.5 billion | 41.67% |
| State Services | $1.14 billion | 31.67% |
960M+1.5B+1.14B=3.6B960M + 1.5B + 1.14B = 3.6B
Total: ✔️ Confirmed — allocations add up precisely to the projected $3.6 billion.
Key Benefits of the Plan
- Eliminates $1.6 billion in property taxes
- Potential to save homeowners $3,000–$5,000 annually
- Simplifies tax code
- Replaces layered taxes and fees with a single flat GRT
- Supports schools and services
- $960M for schools
- $1.5B for cities/counties
- $1.14B for roads, healthcare, and more
- Protects homes and families
- No more risk of foreclosure over unpaid property taxes
Considerations
- Tax Burden Redistribution: Depending on consumption patterns, different income groups and sectors may be affected differently.
- Implementation: Transitioning from the current system requires planning, public input, and administrative reform.
- Public Education: Clear communication is needed to avoid misconceptions about double-taxing or loss of services.
Conclusion
The Core GRT Plan is mathematically sound and financially viable if the $72B gross receipts base holds. Revenue projections and allocations are internally consistent, and the structure delivers a simplified, transparent replacement for property taxes and other burdensome fees.
If surplus is generated, the plan allows for:
- Rate reductions
- State debt pay-down
- Direct refunds to taxpayers
Final Note: The plan is a bold reform with substantial taxpayer benefit and deserves a robust public conversation.
#keepyourhome
#TaxFreedom
#SealSouthDakota