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Taxes & Business Environment
TAX INFORMATION
The Black Hills of South Dakota is home to America's most famous "great faces" - those found on Mt. Rushmore National Memorial. It's also home to many companies that are experiencing "great profits" as a result of the state's outstanding business climate.
Top-notch telecommunication systems, an available, professional workforce, and unlimited training opportunities are three of the factors prompting people to take a second look at the Black Hills of South Dakota. Here are several more:
What is happening in South Dakota that has decision-makers in other states talking?
South Dakota has:
- NO Corporate Income Tax
- NO Personal Income Tax
- NO Personal Property Tax
- NO Inventory Tax
- Competitive workers compensation rates
- Lowest average unemployment insurance rates
- Right-to-Work State
- Fourth lowest overall crime rate in the nation
- An average commute time of 13.8 minutes
- Number one high school graduation rate in the nation
- Leads the nation in manufacturing job growth
And the benefits of doing business in South Dakota are even better for companies in the telecommunications industry.
South Dakota has:
- No sales/use tax on interstate phone calls
- No restrictions on interest rate charges
- No restrictions on late fees
- No restrictions on hours telemarketers allowed to call
- No registration
- No asterick laws
- One party consent recording
Sales Tax
|
State |
4% |
|
City |
2% |
|
Tourism Tax |
1% |
Real Property Tax
The school levy varies depending on the property's classification. Businesses receive the non-ag. rate specified below.
|
County |
5.1463 |
|
Water |
.0350 |
|
City |
3.3041 |
|
School (non-ag) |
17.7052 |
|
The above would be the levies that apply to businesses |
|
|
School (owner occupied) |
10.7729 |
|
School (non-ag. Z) |
9.4832 |
|
School (ag.) |
8.4756 |
Unemployment Insurance
South Dakota average unemployment insurance rate is .9% - the sixth lowest in the nation.
STATE TAX COMPARISIONS
Overall State Per Capita Taxation 2005
Overall state per capita taxes were provided for all 50 states in 2005. South Dakota is the lowest state per capita taxes in the nation.
| State | Per Capita Taxation | Rank |
|---|---|---|
|
South Dakota |
$1,430 |
1 |
|
Colorado |
$1,640 |
4 |
|
Minnesota |
$3,094 |
46 |
|
Montana |
$2,004 |
18 |
|
Nebraska |
$2,158 |
26 |
|
North Dakota |
$2,203 |
29 |
Source: U.S. Census Bureau, Governments Division
States Ranked by total Taxes and Per Capita Amount: 2005
Business Inventory Tax
South Dakota does not tax business inventories. South Dakota does not impose a state property tax. And, South Dakota has not taxed personal property since 1979. In South Dakota, the only property taxes you pay for are local taxes on real property, land and buildings.
MIDWEST COMPARISON
Rapid City, South Dakota
vs.
Colorado, Minnesota, Montana, Nebraska, and North Dakota
Corporate Income Tax
|
South Dakota |
NONE |
|
Colorado |
4.63% |
|
Minnesota |
9.8% |
|
Montana |
6.75% |
|
Nebraska |
First $50,000 - 5.8% |
|
North Dakota |
First $3,000 - 2.6% |
Source: Commerece Clearing House, Inc., Sate Tax Guide, February 2005
Overall State Per Capita Taxation
Overall state per capita taxes are provided for all 50 states in 2003. South Dakota has the 2nd lowest state per capita taxes in the nation
| Per Capita Taxation | National Ranking | |
|---|---|---|
| South Dakota | $1,378 | 2 |
| Colorado | $1,533 | 3 |
| Minnesota | $2,889 | 47 |
| Montana | $1,754 | 14 |
| Nebraska | $2,083 | 33 |
| North Dakota | $1,938 | 23 |
Source: US Census Bureau, Governments Division, States Ranked by Total Taxes and Per Capita Amount: 2004
Contact the Rapid City Area Economic Development Partnership to receive a comparison between your present location and the Black Hills. We'll show you what doing business in South Dakota can do for your bottom line!