Republican candidates for governor clash over sales tax increases in first debate

Key Takeaways:

• Four GOP candidates debated tax policy in their first 2026 gubernatorial forum
• Dusty Johnson accused Larry Rhoden and Jon Hansen of backing a substantial sales tax increase
• Plans involve raising the sales tax from 4.2% to 4.5% to ease property tax burdens
• The June 2 primary requires 35% for a runoff, with voting set to begin on April 17
• Voter registration closes on May 18 for the upcoming gubernatorial election

Introduction

South Dakota’s 2026 gubernatorial race kicked off with a spirited debate among four Republican contenders: Dusty Johnson, Larry Rhoden, Jon Hansen, and Toby Doeden. The central contention revolved around plans to adjust the state’s sales tax, a move intended to provide relief for property owners.

The Sales Tax Controversy

At the heart of the debate was a proposal to increase South Dakota’s sales tax from its current 4.2% rate to 4.5%. Dusty Johnson openly challenged Larry Rhoden and Jon Hansen on their stance, accusing them of backing what he termed a “major sales tax hike.” Rhoden and Hansen emphasized that such a change could free up revenue to offer meaningful property tax cuts.

Property Tax Relief Proposals

Proponents of raising the sales tax argued that shifting a portion of the tax burden could help homeowners. In addition to the statewide hike, a county option sales tax of 0.5% was floated in the debate as a potential way to provide property tax credits. Some also discussed a temporary 1% city sales tax for special projects, underscoring the range of solutions aimed at easing local finances.

Candidate Positions and Clashes

While Dusty Johnson strongly opposed any move to raise sales taxes, arguing that it unfairly burdens consumers, Rhoden and Hansen countered that short-term increases might lead to longer-term stability. Toby Doeden, the fourth candidate, participated by sharing concerns about how these changes might impact working families, though specific details about his plan were limited during the debate.

Election Timeline

With the June 2 primary fast approaching, the campaign trail will intensify in the coming weeks. South Dakotans can start casting ballots on April 17, and the final date to register to vote is May 18. Under state rules, a 35% threshold is required to avoid a runoff.

Broader Implications for 2026

Tax policy has taken center stage in this race for governor, reflecting the widespread impact of any tax increases—or cuts—on the state’s residents and economy. As the campaign moves forward, each candidate’s stance on sales and property taxes will likely remain a decisive factor for voters heading into the pivotal June primary.