October 14, 2009
CNNMoney.com Highlights Tax Foundation 2010 State Business Tax Climate Index
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%.
