South Dakota has again been cited for having the best business tax climate in the nation, Gov. Mike Rounds said today.
A new report from the Tax Foundation rates South Dakota as the No. 1 state when it comes to welcoming economic activity. This marks the second year in a row South Dakota has been at the top of the rankings. The Mount Rushmore State was No. 2 from 2006-2009.
"South Dakota is consistently ranked as a top state for entrepreneurs, the cost of doing business, and state-tax business climate," Gov. Rounds said. "That's not by accident. We work hard to maintain a business-friendly environment and high quality of life."
The Governor noted that South Dakota has no corporate income tax, no personal income tax, no business inventory tax, and no inheritance tax.
"We roll out the red carpet for businesses with our favorable tax system," Gov. Rounds said. "We also cut the red tape, but we don't cut corners."
The Tax Foundation says companies will locate where they have the greatest competitive advantage, and states with the best tax systems are the most attractive to new businesses, most effective at generating economic activity, and best at increasing jobs.
Gov. Rounds said several businesses decided at his recent Invitational Pheasant Hunt to move to South Dakota because of its business-friendly climate. Details about those plans will be announced later.