Target Industry Studies   |
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| Business Tax Comparison |
If you're looking for a great place to start a business, buy a business or relocate a business, the Governor’s office of Economic Development can show you how South Dakota compares to other states. Whether you've established your business or you're an entrepreneur, www.sdreadytowork.com is full of useful information on licensing, taxes and more. Check us out and see how South Dakota's low taxes and business friendly atmosphere can improve your bottom line.
http://www.sdreadytowork.com/South-Dakota-Advantages-50-State-Comparison.aspx
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| Property Tax |
Real property is defined as land and buildings. Equipment and inventory are classified as personal property and are not subject to the property tax. In Sioux Falls for the 2010 assessment year, the ag level of assessment is 95.7 percent. The factor to lower the ag value to a taxable value of 85 percent is 88.8 percent. The non-ag level of assessment for the 2010 assessment year is 94.1 percent. The factor to lower this non-ag value to a taxable value of 85 percent is 90.3 percent.
Ag: .957 x .888 = 85% of market value
Non-Ag: .941 x .903 = 85% of market value
Property taxes vary depending on the School District.
2010 levy for the City of Sioux Falls |
| Water |
0.028 |
| City |
4.498 |
| School |
13.148 |
| County (Minnehaha) |
2.919 |
| Total |
$20.593/$1,000 valuation |
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| Sales / Use Tax |
| Sales Tax - 6 percent (4% State and 2% City) of gross receipts from rentals of lodging establishments and from retail sales of tangible personal property, public utility services, admissions to places of amusement, mechanical amusement devices, etc., and from services and professions. The Use Tax is collected on tangible personal property used or consumed in the state. South Dakota has a reciprocal statute on its sales and use tax. Sioux Falls also has a 1 percent entertainment tax.
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| Unemployment Insurance Tax |
| New employers are subject to the following: 1.75% of the first year and 1.55% of the second and third years of the first $11,000 paid to each employee during a calendar year. For a construction employee, the rate is 6.55% of the first year and 3.55% the second and third years. Employers for four years or more are assigned an experienced rating based on the employer's benefit and contribution experience in relation to the employer's total taxable payroll for a certain period and the remaining balance in the State fund. The average experienced rating for South Dakota employers in 2010 was 2.06%. |
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| Worker's Compensation |
| South Dakota has traditionally been known as having one of the lowest workers compensation rates in the country. For detailed information on the cost of worker's compensation, contact the Insurance Division of the South Dakota Department of Revenue & Regulation at 605-773-3563. |
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