CNBC, the cable network that specializes in business news, has ranked South Dakota the No. 2 state in the nation for Business Friendliness. In the Cost of Doing-Business, the state ranked No. 4 among the 50 states.
The Top States for Business report ranks all 50 states on 10 categories, everything from workforce development to quality of life. CNBC has released the report every year since 2007.
South Dakota has consistently been in the Top 10 for cost of doing business and business friendliness. Over the past decade, the state ranked No. 11 overall. In 2013, South Dakota ranked No. 1 overall, partly on the strength of its Cost of Doing Business.
“In Cost of Doing Business, it's South Dakota, which rode that important category to its sole overall Top States win in 2013,” CNBC’s Scott Cohn wrote. “But as the economy improved and the skills gap widened, low cost is much less of a path to victory than it once was.”
Other strong categories for South Dakota during the decade include the economy (16th on average), quality of life (12th) and cost of living (17th).
A big contributor to South Dakota’s Business Friendliness and low Cost of Doing Business is the state’s tax structure. South Dakota has no personal income tax, no corporate income tax, no business inventory tax, no personal property tax and no inheritance tax.
Cost of Doing Business rankings examine factors such as wages, utility costs, rentals for office and industrial space and state and local taxes. Business Friendliness measures the freedom of each state’s legal and regulatory frameworks for business.