Taxes, Incentives and Loans
Low Interest Loans
Lake Area Improvement Corporation's Intermediary Relending Program (IRP)
This program allows local businesses to work in partnership with the LAIC and a local bank to obtain a low interest business loan. There is a minimum loan amount, involvement with a bank and application with approval is required. Started in 2009, the program has been a success for new and expanding businesses. Contact the LAIC for more info!
Heartland Consumers Power District - HELP Fund
The Heartland Economic development Loan Program (HELP) Fund promotes community development in customer communities through a revolving loan fund. It provides funds for business ownership and expansion, job creation and retention, and entrepreneurial enterprises. Visit HCPD's Help Fundpage for more information.
HCPD also offers other programs such as a growth incentive program, economic development grants, Energy ONE Incentives, and energy efficiency grants/incentives. Visit www.HCPD.com for more information.
First District Development Company Loan Programs
The mission of the FDDC is to assist businesses by providing long term, lower rate financing for their growth and development, while improving the overall economic condition of the area. There are several loan programs available, for more information contact - www.1stdistrict.org/FDDC.
Rural Electric Economic Development, Inc. (REED) Fund
The program provides financing for business and community projects that create and retain jobs and build community infrastructure. Contact Sioux Valley Energy at (605) 256-1600 for more information.
GROW South Dakota's Down Payment/Closing Cost Program
GROW South Dakota is a private non-profit corporation established in 2007. GROW South Dakota's purpose is to promote and foster economic development in distressed communities and underserved markets in South Dakota. GROW helps with housing, community and economic development projects.
Learn about GROW South Dakota at www.growsd.org
At Dakota Resources, we want to stimulate Economic Development (job creation and business activity) in your community. We do that through a continuum of strategies that relate to business:
Funding - All four of those strategies need funding — and Dakota Resources makes flexible, reasonably priced capital available to Revolving Loan Funds and Economic Development Corporations who finance local development projects.
Find out more about what Dakota Resources does at www.DakotaResources.org
Taxes, Incentives & Financing
The South Dakota entrepreneur has a competitive edge over his/her business counterparts in 49 of the 50 United States. Per capita state taxes are the 49th lowest in the country here. The South Dakota business person enjoy:
- No Corporate Income Tax
- No Personal Income Tax
- No Personal Property Tax
- No Business Inventory Tax
- No Inheritance Tax
- Lowest State Per Capita Taxation
|Local Sales Tax Rate
|State Sales Tax Rate
|Bed, Board & Booze
Effective Tax Rates
|Residential (Owner Occupied) Property Tax
|Non-Agricultural Property Tax
|Agricultural Property Tax
Property Tax Rate = effective tax rate as a % of property value. Effective Tax Rates are from the based on 2016 taxes payable. Information from the Lake County Equalization Office for 2016.
Lake County Tax Incentive
Lake County through the State of South Dakota offers a property tax discretionary formula which will span a 5 year period for commercial property improvements or new construction equal to or greater than $30,000 of the assessed value. This formula is applied to the new or upgraded construction resulting in the following savings:
Year/ Savings / Taxed
- Year 1 - 80 percent - 20 percent
- Year 2 - 60 percent - 40 percent
- Year 3 - 40 percent - 60 percent
- Year 4 - 20 percent - 80 percent
- Year 5 - 0 percent - 100 percent
Contact Lake County Equalization at 605-256-7605 for more information. SDCL 10-6-35.2
We work with the South Dakota Governor's Office of Economic Development (GOED) and the City of Madison to offer a variety of incentives for existing, expanding and new businesses.
South Dakota Financing
We know that available financing is critical for your company to grow and prosper. That's why our business financing programs are designed with you in mind. From revolving loan funds to workforce development grants, we're sure we have one that's right for you:
Revolving Economic Development & Incentive (REDI) Fund – Provides permanent financing for land, building, machinery and equipment and associated installation costs.
Small Business Administration (SBA) 504 – Offers long-term, fixed-rate financing on fixed asset purchases to all for-profit businesses.
Agricultural Processing & Exporting (APEX) Fund – Assists companies that add value to agricultural products through processing or exporting out-of-state.
MicroLOAN SD – Offers access to working capital for small enterprises and may be used for fixed assets.
Bond Financing – Provides small businesses with access to the public bond market. Value-Added Ag Subfund – Available for feasibility and marketing studies for value-added agricultural projects.
Workforce Development Training – Provides matching grants to assist companies with up to 50% of eligible training expenses.
Community Development Block Grant (CDBG) – Provides matching grants to local governments, municipalities and counties.