The South Dakota state legislature was acknowledged as the sixth friendliest in the nation to business by Expansion Management’s 1998 Legislative Quotient. South Dakota’s business-friendly climate extends to all business with:
Bank and Financial Corporation Excise Tax: This tax is imposed at a graduated rate from six percent on the first $500 million of net income to one percent on net income that exceeds $600 million.
Personal Income Tax: None
Real Property Tax: Local real property taxes vary from one percent to four percent of the actual value of the structure, with most rates falling between two percent and three percent.
County commissioners may, at their discretion, forgive from 0 to 100 percent of the property taxes for up to five years on a new structure or an addition to an existing one. This abatement may be available on all industrial, commercial and/or non-residential agricultural structures with a value of more than $30,000.
Personal Property Tax: None
Business Inventory Tax: None
Unemployment Insurance: South Dakota employers pay from .00 percent to 7.7 percent of the first $7,000 in wages paid to each employee during a calendar year. The rate for new employers is 1.9 percent the first year of operation and 1.7 percent for the second year if they maintain a positive account balance. Thereafter, the rate is based on experience. The average experienced rate is 0.9%.
Workers Compensation: $2.75 per $100 of payroll (average net cost for manufacturers).
State Sales and Use Tax: 4 percent
Gasoline/Motor Fuel Tax: $0.22/gallon