Taxes

Imagine a place where you can start a business, hire some of the hardest working people in America, and together make money and keep it – rather than hand it over to the government. Spearfish businesses and residents enjoy NO corporate income tax. NO Personal Income Tax, NO Personal Property Tax, NO Business Inventory Tax and NO State Inheritance Tax. In addition to our “NO tax” philosophy, we boast the 3rd lowest unemployment insurance rates in the country and remain well below the national average for workers compensation rates.

Of course don’t take our word for it, read what others are saying about our business environment;

“South Dakota Ranked #1 for America’s Top State for Business”
– CNBC News
April 2013

“South Dakota Ranked #1 for best Business Climate”
– US Chamber of Commerce Foundation
April 2013

“Best state tax system for entrepreneurship and small business”
– Small Business & Entrepreneurship Council
April 2012

2016 Property Taxes


City of Spearfish

Residential: .2806
Commercial: .2806

Lawrence County

Residential: .4172
Commercial: .4172

Spearfish School District

Residential: .8184
Commercial: 1.2127
– Source: Lawrence County Equalization Office

Sales Tax Rate

City of Spearfish: 2%
Lawrence County: 0%
South Dakota Sales Tax: 4.5%
Total Sales Tax Rate: 6.5%

Application of Sales/Use Tax

Production Equipment State/Local* : Yes
Industrial Building Construction Materials State/Local: Yes
Office Building Construction Materials State/Local: Yes
Manufacturer’s Raw Materials State/Local: No
Standard/Custom Software State/Local: Yes
* Projects requiring $2 million or more in new equipment may apply for a rebate through the “Reinvestment Program.”

Other Taxes

Personal Income Tax: None
Corporate Income Tax: None
Business Gross Receipt Tax*: None
Personal Property Tax: None
Franchise Tax^: None
Occupation/Wage Tax: None
Inheritance Tax: None
Business Inventory Tax: None

* Only wireless communication providers are subject to a gross receipt tax (4%)
^ Banks are subject to a franchise tax

Workman’s Compensation

State Average Cost for Manufacturing per $100 Payroll Rate: $3.91
Minimum Weekly Benefit: $391.00
Maximum Weekly Benefit: $781.00

Source: South Dakota Governor’s Office of Economic Development, Workers Compensation Study of Manufacturing Industry Rates, May 2016. Updated May 2017

Unemployment Insurance

Taxable Base: $15,000

Rate%
Average Among Existing Employers: 1.35%
Average Among New Employers: 1.75%

Maximum Weekly Benefit: $390

Source: U.S. Dept. of Labor, Employment & Training Administration: “Estimated Employer Contribution Rates, by State, Calendar Year 2016.” American Payroll, “State Unemployment Insurance Taxable Wages Bases 2014-2017.” Last updated March 2017.

We are ready to move forward with you.

(605) 642-3832