The Chamberlain-Oacoma area is a great place to start a business, buy a business or relocate a business. Our progressive community is determined to help new and existing businesses thrive. Our location is ideal for easy transport and access, as we are located along Interstate 90 and Highway 50. Our local real estate tax incentives include a 20-40-60-80-100 reduction each year. Our per capita state taxes are the lowest in the country. We have one of the lowest rates for unemployment insurance and worker’s comp insurance.
South Dakota has many tax advantages including:
- No Personal Income Tax
- No Corporate Income Tax
- No Personal Property Tax
- No Business Inventory Tax
- No Inheritance Tax
Business Cost Comparison
Corporate Income Tax
South Dakota has long held the stance that if you make money, you should be able to keep it. In keeping with that philosophy, South Dakota does not tax corporate or personal income.
Personal Income Tax
South Dakota’s business climate favors both employer and employee alike. And the small business owner finds that South Dakota business climate unequaled anywhere else. Just as South Dakota does not tax corporate income, South Dakota does not tax personal income.
In 2008, South Dakota ranked 9th in the nation for workers compensation net insurance costs for manufacturers.
Unemployment insurance rates are compared for 2007/2008. South Dakota has the lowest unemployment rate in the nation, so there is little impact on the unemployment insurance fund and no demand for cost increases here.
Sales and Use Tax
Base Rate: 4%
Machinery Rate: 4%
Refund: A tax refund (sales, use and contractors’ excise taxes) is available for new and expanding businesses with project costs exceeding $10 million.
A refund of retail sales and service tax, use tax, and contractors’ excise taxes is also available for taxes attributed to the construction of a new or expanded facility, constructed for the processing of any form of agricultural commodity, product or by-product. Project costs must be a minimum of $4.5 million.
Overall State per Capita Taxation
Overall state per capita taxes are provided for all 50 states in 2007. South Dakota has the lowest state per capita taxes in the nation.
Business Inventory Tax
South Dakota does not tax business inventories. South Dakota does not impose a state property tax. In addition, South Dakota has not taxed personal property since 1979.
Personal Property Tax
South Dakota has not taxed personal property since 1979. In South Dakota, the only property taxes you pay are local taxes on real property, land and buildings.
Bank Franchise Tax
Excise Income Tax
$0-$400,000,000 – 6%
$400,000,000-$425,000,000 – 5%
$425,000,000-$450,000,000 – 4%
$450,000,000-$475,000,000 – 3%
$475,000,000-$500,000,000 – 2%
$500,000,000-$600,000,000 – 1%
$600,000,000-$1,200,000,000 – 0.5%
$1,200,000,000-$999,999,999 – 0.25%
Companies moving to South Dakota experience an increase in productivity, a decline in personnel problems and an unprecedented dedication and loyalty to business. South Dakota has the 7th lowest unionization membership in the nation.
Quality schools that produce quality workers is a trademark of South Dakota. The state boasts a 79.9% graduation rate.
Student per Computer Ratio
Preparing student for today’s world of work means giving them a technological advantage. South Dakota is building its workforce for today and tomorrow. South Dakota leads the nation in the student-to-computer ratio.
Index Crimes per 100,000 Population
A comparison of crime rates in all 50 states reveals that South Dakota had the lowest property crime rate and the 5th lowest violent crime rate in the nation in 2006.
Any way you look at it, we have the most business friendly business atmosphere in the area!