Taxes & Incentives
South Dakota businesses are not overburdened with excessive taxes or regulations, and they have a competitive edge over their counterparts in other areas of the United States. South Dakota helps businesses keep the money they make so they can continue to invest in their company’s growth.
South Dakota consistently receives high marks from top national ratings groups, due in large part to these competitive advantages:
- No Corporate Income tax
- No Business Inventory tax
- No Personal Income tax
- No Personal Property Tax
- No Inheritance tax
- Competitive Workers' Compensation Rates
- Low Average Unemployment Insurance Rates
- Right-to-Work State
Incentives are customized according to the needs of each business and are determined by job creation, service creation, revenue generation, and overall economic impact. They can include tax abatements, relocation or workforce training grants, lower interest loans, special lease or construction terms, tax refund credits, venture capital, and more. All in all, Rushmore Region Alliance partners have a variety of funding mechanisms in place to meet the specific needs of both new and existing businesses.
Community Incentives
Belle Fourche
- Butte County Discretionary Formula:
- The first 5 years have a $0 tax on new commercial construction with a real and true value of $30,000 or more.
- Click here for Third Amended Ordinance #95-3 (Discretionary Formula)
Rapid City
Rapid City offers unique incentives on a company-by-company basis depending on industry alignment, job creation, wage levels, quality-of-life impact, and broader community needs.
Spearfish
- Located in the northern Black Hills, Spearfish represents one of the most broad-based economies in western South Dakota. With roots in education, health care, tourism, natural resources and light industry, the economy has grown and diversified substantially. Available land and buildings, a well-educated workforce, access to major transportation routes and its ideal location has helped fuel the economic growth of Spearfish.
- The City of Spearfish owns a variety of properties zoned for commercial/industrial use. These properties are visible from Interstate 90 and utilities are on site. Spearfish offers the following property tax abatement for qualifying projects:
- For the first tax year following construction, twenty percent (20%) of the assessed value
shall be used for tax purposes on such property; - For the second tax year following construction, forty percent (40%) of the assessed value
shall be used for tax purposes on such property; - For the third tax year following construction, sixty percent (60%) of the assessed value
shall be used for tax purposes on such property; - For the fourth tax year following construction, eighty percent (80%) of the assessed
value shall be used for tax purposes on such property; - For the fifth tax year following construction and every year thereafter, one hundred
percent (100%) of the assessed value shall be used for tax purposes on such property;
- For the first tax year following construction, twenty percent (20%) of the assessed value
Sturgis
Incentives are customized according to the needs of each business and are determined by job creation, service creation, revenue generation, and overall economic impact. They can include lower interest loans, relocation or training grants, special lease or construction terms, and tax refund credits. SEDC coordinates incentives with City, County, and State development partners.
- Property Tax Abatement: Meade County Discretionary formula 20/24/60/80/100 on new commercial structures or renovations over $30,000.
- Revolving Loan Funds: Attractive terms on permanent financing for working capital, fixed assets and real estate for for-profit businesses, both large and small. These funds are through the City of Sturgis, Meade County, and SEDC.
- Loan Pool: SEDC partners with the City, County, and private lenders to offer attractive, flexible economic benefit packages.
- Sturgis Chamber of Commerce: Aids in helping business grow in the community.
- Based on the type and number of new jobs, services or revenues created, as well as, the project’s total capital investment and a financial statement review, these incentives may be offered:
- Land to build a new facility
- “At cost” building construction and lease back
- Buy-down of lease cost on constructed facility
- Lower cost, fixed rate financing of equipment and building
- Relocation grants
