Doeden joins race for governor with pledge to eliminate property taxes

Toby Doeden announces his candidacy for the Republican nomination for governor of South Dakota during an event on May 28, 2025, in Aberdeen. (Joshua Haiar/South Dakota Searchlight)

Joshua Haiar/South Dakota Searchlight

ABERDEEN — Toby Doeden, an Aberdeen businessman, officially launched his campaign for governor of South Dakota on Wednesday evening, promising a sweeping overhaul of state government including the elimination of property taxes.

Doeden is seeking the Republican nomination in 2026 and is the second member of his party to officially declare a candidacy, after state House Speaker Jon Hansen, of Dell Rapids. Other Republicans frequently mentioned as potential candidates include former lieutenant governor and current Gov. Larry Rhoden, who is serving the remainder of former Gov. Kristi Noem’s second term after she resigned to join the Trump Cabinet, along with U.S. Rep. Dusty Johnson and Attorney General Marty Jackley.

Rhoden signed a bill earlier this year that includes several forms of property tax relief. Doeden said he’ll go further.

“As governor, I will fight to eliminate property taxes so that each and every resident — regardless of class, color, creed or profession — can truly own their home and their land once and for all,” Doeden told an enthusiastic crowd of at least a couple of hundred supporters.

He proposed the creation of a new agency, the “South Dakota Department of External Revenue,” to identify alternative revenue sources.

Doeden repeatedly criticized what he called a “bloated $8 billion enterprise,” referring to state government and its budget. He said he would create a “South Dakota Department of Government Efficiency” and promised to audit every state agency and publicly release “every line item” of spending. He also pledged to reject a salary, eliminate executive perks such as state-funded air travel, and shred all executive branch credit cards.

Doeden called for reform of South Dakota’s public education system. He pledged to refocus schools on “reading, writing, math and critical thinking,” and said classrooms should be “free from indoctrination and divisive ideologies.”

“I will work with President Trump and our Legislature here at home to develop and implement an education system that prepares our children for a future of winning,” he said.

Doeden tied his campaign closely to President Donald Trump, saying he would work to combat crime and illegal immigration.

“Any elected official who suggests defunding the police will forfeit their right to hold office,” he said.

Doeden was introduced by state Sen. Taffy Howard, R-Rapid City, who lost a 2022 primary challenge to U.S. Rep. Johnson. Among the other state lawmakers in attendance was Rep. Brandei Schaefbauer, R-Aberdeen.

“Toby is a businessman, and we need someone who understands jobs, the economy, and why people are struggling,” Schaefbauer said.

Doeden, a married father of four grown children, is the owner of Aberdeen Chrysler Center, Redfield Ford and other retail businesses and real estate.

When Doeden was publicly considering a challenge last year to Johnson, Doeden’s past social media posts drew scrutiny. He had encouraged the shooting of immigrants in gangs, used a profane insult to describe President Joe Biden, and labeled statistics about hatred of Jewish Americans as “fake.”

Doeden ultimately decided against running for U.S. House last year. He founded a political action committee called Dakota First Action, which he used to support legislative candidates and play a role in 14 June primary losses by incumbent Republican lawmakers.

The committee faced immediate scrutiny due to a $100,000 contribution from Doeden himself. Following concerns raised about state campaign finance laws – particularly the $10,000 limit on individual contributions to PACs – Doeden amended the report, stating that the money was a loan rather than a donation. Because loans can be forgiven, critics alleged that Doeden had found and exploited a loophole allowing him to make an unlimited individual contribution.

The Legislature passed a bill this winter closing the loophole with a new requirement that any loan, when combined with contributions from the same source, cannot exceed contribution limits in state law. Had the law been in effect last year, Doeden would have been limited to a combined $10,000 of annual contributions and loans to his political action committee.

In October, Doeden and Dakota First Action hosted a fundraising event in Sioux Falls that sparked controversy for featuring a video message from North Carolina Lt. Gov. Mark Robinson. CNN had recently exposed Robinson’s racist and sexually explicit comments on a pornographic website’s message board, including referring to himself as a “black Nazi,” expressing support for reinstating slavery and praising Adolf Hitler. Robinson, who was running for governor of North Carolina, lost to a Democrat in the general election.