It's Simple - You Save Money
Doing Business Here

National surveys consistently show Sioux Falls and South Dakota as locations where companies save money in the cost of doing business. From lower taxes to among the lowest in workers compensation rates, Sioux Falls can add dollars to your bottom line.

The business climate in Sioux Falls, South Dakota is ideal for growing your business. In addition to an extremely favorable mixture of low taxes with high quality state and municipal services and facilities, you will pay:

[Real Property Tax] [Worker's Compensation] [Sales & Use Tax]
[Unemployment Insurance Tax] [Business Tax Comparison]
[Motor Vehicle Excise Tax] [Bank & Financial Corporation Excise Tax]

Real 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 2008 assessment year, the ag level of assessment is 92.2 percent.  The factor to lower the ag value to a taxable value of 85 percent is 92.2 percent.  The non-ag level of assessment for the 2008 assessment year is 94.6 percent.  The factor to lower this non-ag value to a taxable value of 85 percent is 89.9 percent.

AG:           .922 x .922 = 85% of market value
Non-Ag:   .946 x .899 = 85% of market value

Property Taxes vary depending on the School District. 

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Workers 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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Unemployment Insurance Tax
New employers are subject to the following:  1.75% of the first year and 1.55% of the second year of the first $9,000 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 of three 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 2008 was 0.91%.

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Sales & Use Tax
Sales Tax - 5.92 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.

For a description of all individual taxes for the state of South Dakota, visit www.state.sd.us/revenue/laws/taxdesc.htm

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Motor Vehicle Excise Tax
3% is imposed on the purchase price of motor vehicles, recreational vehicles, and motor homes.

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Bank & Financial Corporation Excise Tax
This tax is imposed at a graduated rate from six percent to .25 percent as income increases. Six percent is charged on the first $400 million of net income.

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