Republican Candidates for Governor Clash Over Sales Tax Increases in First Debate

Leading candidate Dusty Johnson criticizes rivals Larry Rhoden and Jon Hansen for supporting higher sales taxes

Apr. 1, 2026 at 9:03am

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The four Republican candidates for governor of South Dakota clashed over tax policies in their first debate, as the leading candidate in the polls, U.S. Rep. Dusty Johnson, criticized two others for their support of higher sales taxes. Johnson alleged that Gov. Larry Rhoden and state House Speaker Jon Hansen were falsely calling themselves tax cutters, saying they had actually raised taxes through sales tax increases. Rhoden and Hansen defended their record, saying the sales tax increases were used to provide property tax relief.

Why it matters

The debate highlighted key differences in the Republican candidates' approaches to taxation and economic policy, which will be a central issue in the race for South Dakota's next governor. The outcome could have significant implications for the state's fiscal and business climate.

The details

Johnson alleged that Rhoden 'signed three sales tax increases just this legislative session' and called them 'the largest tax increases in state history.' Rhoden countered that Johnson's own proposal for property tax relief would have used revenue from the scheduled statewide sales tax rate increase. Hansen said he tried to keep the statewide sales tax at 4.2%, but lacking enough legislative support, he did 'the next best thing,' which was 'taking all of that revenue and putting it back into the people's pockets for property tax relief.' Businessman Toby Doeden described the property tax reduction bills supported by Rhoden and Hansen as 'so-called property tax relief,' dependent on increased sales taxes.

  • The four Republican candidates for governor of South Dakota clashed over tax policies in their first debate on Tuesday.
  • The recently concluded legislative session saw the passage of three bills that allow for new or higher sales taxes.
  • Early voting for the June 2 primary begins on April 17, and the voter registration deadline is May 18.

The players

Dusty Johnson

U.S. Representative and leading candidate in the polls, who has criticized his rivals for supporting sales tax increases.

Larry Rhoden

Governor of South Dakota, who previously served as lieutenant governor to Kristi Noem and was elevated to the top job when she resigned in 2025.

Jon Hansen

Speaker of the South Dakota House of Representatives, who voted for bills allowing sales tax increases for property tax relief.

Toby Doeden

Businessman and political newcomer who has criticized the 'so-called property tax relief' bills supported by Rhoden and Hansen.

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What they’re saying

“'My problem isn't that they did it once. They did it twice. They did it three times.'”

— Dusty Johnson, U.S. Representative

“'He laid out a proposal that used the exact same sales dollars for his property tax plan.'”

— Larry Rhoden, Governor of South Dakota

“'It's the biggest sales tax increase in South Dakota history.'”

— Toby Doeden, Businessman

What’s next

The four Republican candidates will continue campaigning ahead of the June 2 primary election, where the leading vote-getter must reach at least 35% support to avoid a runoff. The winner will advance to represent the Republican Party in the November general election for governor.

The takeaway

The debate highlighted the stark differences between the Republican candidates on tax policy, with the leading contender Dusty Johnson criticizing his rivals for supporting sales tax increases, even if the revenue was used for property tax relief. This issue will likely be a key battleground in the race to determine South Dakota's next governor.