South Dakota Basic Business Taxes 2010
South Dakota's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include no corporate income tax, property tax abatement, and energy and fuel conservation measures.
Area Development Research Desk (Feb/Mar 10)
Corporate income tax:
South Dakota has no corporate income tax.
Personal income tax:
South Dakota has no personal income tax. Owners of non-incorporated businesses who reside in South Dakota pay no personal income tax on their profits from their South Dakota business operations.
Sales and use tax:
South Dakota levies a 4 percent occupational retail sales tax on the retail sale of tangible personal property and on most services. Tangible personal property purchased for resale and materials incorporated into products for resale are exempt from sales tax.
Real property tax:
A property tax on real property is levied at the local level. Local tax rates are usually between 1 and 3 percent. The equalization rate is set at 85 percent of market value.
Property tax abatement:
Local county boards may provide an abatement for new industrial or commercial structures and additions to existing structures valued at more than $30,000, and for renovated or reconstructed structures to which $10,000 or more in value has been added. With abatements, property may be valued at 0 percent to 100 percent of the assessed value for one to five years.
Personal property tax:
There are no personal property taxes in South Dakota.
Energy and fuel conservation measures:
A credit against property taxes is allowed for the installation of a renewable-resource energy system. The credit for businesses is 50 percent of the installed cost of the system less any federal income tax credit for up to three years.
South Dakota State Contact:
Governor's Office of Economic Development
711 E. Wells Avenue
Pierre, SD 57501-3369
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.