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

 

  2012 Property Taxes
(Per $100 Assessed Value)
  Tax Rates
Taxing Entity Residential Commercial
City of Spearfish 0.3019 0.3019
Lawrence County 0.4622 0.4622
Spearfish School District 0.8740 1.3349
Total Property Tax Rate $1.64 $2.10

Source: Lawrence County Equalization Office

 

Sales Tax Rates 
Taxing Entity Tax Rate
City of Spearfish 2.00%
Lawrence County 0.00%
Spearfish School District 4.00%
Total Sales Tax Rate 6.00%

Source: SD Department of Revenue
Note: There is an addition 1% local sales tax accessed to prepared food, lodging and drink

 

Application of Sales/Use Tax
(Yes or No) on:  
  State Local
Production Equipment* Yes Yes
Industrial Building Construction Materials Yes Yes
Office Building Construction Materials Yes Yes
Manufacturer's Raw Materials No No
Standard/Custom Software Yes Yes

* Projects requiring $2 million or more in new equipment may apply for a rebate through the "Reinvestment Program."

 

Other Taxes  
  State Local
Personal Income Tax None None
Corporate Income Tax None None
Business Gross Receipt Tax None* None
Personal Property Tax None None
Franchise Tax None^ None
Occupation/Wage Tax None None
Inheritance Tax None None
Business Inventory Tax None None

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

 

Workers Compensation & Unemployment Insurance 
Workers Compensation Rate
     State Average Cost for Manufacturing per $100 Payroll $2.87
     Average Rate for Office Workers (8810) $1.39
     Maximum Weekly Benefit $691
Unemployment Insurance  
Taxable Base $13,000
Rate %  
     Average Among Existing Employers 1.95%
     Average Among New Employers 1.75%
     Maximum Weekly Benefit $345

Source: GOED "Business Cost Comparison Report" August 2013