Costs are reasonably low for businesses
Over the past few years, a number of outside businesses have opened new locations in South Dakota. Pipeline Plastics, a Texas-based pipeline manufacturer, is now manufacturing in Belle Fourche. On the other side of the state, Marmen Energy chose Brandon for its first U.S. location to build wind towers. Sterling moved its headquarters from Norfolk, Nebraska, to Dakota Dunes; and ALCOM opened up operations in Sioux Falls.
In addition, our existing businesses have been expanding. Places like Trail King in Mitchell, PerGroup in Rapid City and Sapa in Yankton are all adding jobs.
Why are things going so well in South Dakota? Let’s consider:
First, the cost of doing business in South Dakota is low. The U. S. Department of Commerce says our costs – utilities, occupancy, transportation and other costs are reasonably low for businesses – only 88 percent of the U.S. average. Other states like California, Hawaii, New York and New Jersey are all over 112 percent of the national average.
Businesses also have an advantage here because the tax burden is low. We have no corporate income tax, no personal income tax, no business inventory tax, no personal property tax and no inheritance tax. This creates a more favorable environment for growth by putting more money in the pockets of our businesses and workers.
Our reasonable regulatory climate also makes us business-friendly. Earlier this year, the U.S. Chamber of Commerce named South Dakota’s business climate as best in the nation. We don’t make things unnecessarily burdensome for our entrepreneurs. We know things shouldn’t be overcomplicated for job-creators who are trying to know and obey the laws.