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South Dakota was previously an undiscovered treasure, with a reputation of not being recognized for fostering prosperous enterprises. The residents were aware of the valuable assets within our state, and that was enough. 

Times have changed thanks to the trusted leadership of Governor Kristi Noem and her forward thinking. She has single-handedly put South Dakota on the map.

Whether it was taking a stance against the federal mandates during covid, or openly welcoming new businesses to the state. As a result, South Dakota has seen unprecedented growth. 

It is our hope that with this newsletter, we can bring you information about that growth and how South Dakota is a great place to do business.   

Many states talk about their tax environment, and all the barriers they face. We want to talk about real examples of how we have overcome problems to help businesses relocate and continue to grow throughout our great state. With this newsletter you will be able to check out available properties, read about real case studies, and most importantly gain direct access to the Governor’s Office of Economic Development team, to answer any questions.   

We are here to serve you. If there is anything we can do to continue that mission, build relationships, or help your business(es) relocate here, we’d love to hear from you.   

Jesse Fonkert

GOED Deputy Commissioner



The state of South Dakota and Governor Kristi Noem won Site Selection Magazine's 2023 Governor Cup.

South Dakota received this honor for having the most economic development projects per capita in the nation.

This win is a first for South Dakota, who had a total of 40 projects per capita in 2023.

Click below to read the full article.



It is crucial to consider the workforce opportunities that can benefit businesses when searching for the perfect location for your clients. South Dakota provides numerous advantages in terms of innovation, research, and a skilled workforce emerging from our esteemed regental institutions. Below, you will find a glimpse of the remarkable achievements of these students and universities, and how they can align with the requirements of your business(es).



Welcome to the tool shed, a column focused on highlighting tools that you can use as you assist companies in finding a location in South Dakota. For the first edition, we are going to focus on the tax environment in the state.

South Dakota has a tax-friendly environment, and the Tax Foundation has consistently ranked us as the 2nd Best Business Tax Climate in the U.S. for more than 20 years now. In fact, it is one of the very few, if not the only state in the nation where business owners benefit from:

  • No corporate income tax
  • No personal income tax
  • No personal property tax
  • No business inventory tax
  • No inheritance or estate tax

This allows business owners to keep more of their money to invest back into their business.

While this tax environment is beneficial, it also creates a challenge when working with business owners and site selection consultants who are looking at South Dakota. Since the state does not have the taxes listed above, the state does not provide tax credits. When tax credits are not part of the discussion, a business owner sometimes assumes that we are being stingy with our incentives.

To help one business owner that I was working with a few years ago, I jokingly noted that I would give them relief on 100% of their corporate income tax in perpetuity if he located in South Dakota! We had a good laugh, but it helped him realize that he could have enormous tax benefits forever without receiving tax credits.

So, what taxes do we have in South Dakota? Our state and local governments rely on two main tax mechanisms. First is sales tax. The state sales tax rate is 4.2 and municipalities can add up to an additional 2.0%. Cities can also impose a 1.0% tax on lodging (hotels) restaurant meals and alcoholic drinks.

The second is real property tax which can vary from 1% to 3% of the market value of the property, with most rates falling around 2%.

One tool that is at your disposal is a five-year property tax abatement that may be available. County commissions or city councils may, at their discretion, forgive from 0% to 100% of the property taxes on a new structure or an addition to an existing one. These property tax abatements are created by local ordinances and set in stone. The local governments do not have the ability to negotiate better terms.

A large value-added agriculture project that landed in South Dakota a few years ago utilized this property tax abatement and over the five-year period reduced their property tax bill by several million dollars. They used those funds to purchase additional equipment for their facility.

Click here for more information on South Dakota’s tax climate.

Joe Fiala

GOED Partner Relations Director



Every year, the Governor's Office of Economic Development compiles a booklet containing essential information and insights into the achievements made throughout the state in the previous year.

Annual Report



The interactive

dashboard is now online.




An overview of key

points of our economy.




Premier sites and buildings available in South Dakota.


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