{"id":40343,"date":"2026-07-21T02:14:03","date_gmt":"2026-07-21T07:14:03","guid":{"rendered":"https:\/\/unitedresourceconnection.org\/cannon-ball-nd-58528\/business-groups-concerned-with-property-tax-scheme\/"},"modified":"2026-07-21T02:14:07","modified_gmt":"2026-07-21T07:14:07","slug":"business-groups-concerned-with-property-tax-scheme","status":"publish","type":"post","link":"https:\/\/unitedresourceconnection.org\/cannon-ball-nd-58528\/business-groups-concerned-with-property-tax-scheme\/","title":{"rendered":"Business groups concerned with property tax scheme"},"content":{"rendered":"
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South Dakota Governor Candidate, Toby Doeden. (Courtesy photo)<\/p>\n<\/div>\n

SIOUX FALLS \u2013 A broad coalition of business groups has expressed concern with statements made by gubernatorial candidate Toby Doeden regarding the elimination of nearly $2 billion in local property taxes by cutting funding for schools, counties, and cities and implementing new taxes on visitors.<\/p>\n

In response to survey questions and in conversations with business groups, Doeden has pledged \u201caggressive spending reductions\u201d to local governments while seeking \u201cadditional sources of revenue.\u201d Doeden has claimed that families would \u201cpay any price in the world\u201d to come to South Dakota and that \u201cit\u2019s time for tourists and out-ofstate visitors to pay their fair share . . . we will be obtaining new revenue from tourists that come here to enjoy our beautiful state.\u201d<\/p>\n

Eliminating nearly $2 billion in funding for schools, counties, towns and other local needs \u2013 which is the equivalent of roughly 80 percent of the general fund budget for the State of South Dakota \u2013 with cuts and new taxes would negatively impact infrastructure and place even greater strain on local businesses.<\/p>\n

\u201cSouth Dakota\u2019s business com munity has spent decades building a reputation for fiscal discipline and sound governance,\u201d added Ryan Budmayr, President of the South Dakota Chamber of Com merce & Industry. \u201cWe support real tax relief, but any plan of this size needs to be grounded in real numbers so families and business es can trust it will actually work.\u201d<\/p>\n

\u201cA one percent statewide sales tax raises about $350 million,\u201d said Nathan Sanderson, Executive Director of the South Dakota Retailers. \u201cTo replace $2 billion in local property taxes would require a nearly 6% sales tax rate on top of our current sales taxes and if it\u2019s applied more narrowly it would need to be much, much higher. This would crush businesses and cripple our state\u2019s No. 2 Industry.\u201d<\/p>\n

\u201cProperty taxes fund schools, counties, towns, and other local needs,\u201d said Garth Wadsworth, Senior Public Policy Director of Elevate Rapid City. \u201cWe need to educate our kids, maintain county roads, and repair necessary infrastructure; we cannot cut all of these services.\u201d<\/p>\n

\u201cInfrastructure is the backbone of commerce,\u201d said Jeff Griffin, President and CEO of the Greater Sioux Falls Chamber of Commerce. \u201cCutting infrastructure while raising taxes would have a very negative effect on South Dakotans.\u201d<\/p>\n

\u201cA new consumption tax on visitors would make South Dakota less competitive, increase the cost of visiting our state, and reduce visitor spending\u2014while the logistics of determining who is a visitor could also result in unintended costs and impacts for South Dakota residents,\u201d said Carmen Schramm, Executive Director of the Tourism Coalition of South Dakota.<\/p>\n

\u201cThis plan is simply not workable,\u201d said Mike Bockorny, Executive Director of the Economic Development Professionals of South Dakota. \u201cSmall businesses, local restaurants, gift shops, hotels, coffee shops, book stores, and attractions across the state would be devastated. This is not the right approach for South Dakota.\u201d<\/p>\n

Groups expressing concern about Doeden\u2019s property tax scheme include:<\/p>\n