October 14, 2009
By Jennifer Lawinski
For the first time, South Dakota edged past Wyoming to capture the top spot in the Tax Foundation's annual state-by-state ranking of business tax climates.
What makes the state such a tax haven? There's no personal or corporate income tax -- and South Dakota is one of a shrinking number of states that doesn't levy a "gross receipts" business tax on revenue. Anything you ring up in sales or profit, you get to keep.
South Dakota also has a comparatively modest sales tax. The statewide rate is 4%, though some municipalities tack on their own toll, taking the rate as high as 6%.