South Dakota has a very attractive business climate. In addition to an extremely favorable mixture of low taxes with high quality state and municipal services and facillities. The City of Sioux Falls has an ordinance that allows new industrial structures or additions to existing industrial structures to be taxed at a lower rate. A number of the smaller communities within Minnehaha and Lincoln Counties have also enacted property tax abatement ordinances.
Real property is defined as land and buildings.
Equipment and inventory are classified as personal property and are not subject to the property tax. The Use Tax is collected on tangible personal property used or consumed in the state. South Dakota has a reciprocal statute on its sales and use tax. Sioux Falls also has a 1 percent entertainment tax. The REDI-Fund provides for a low interest revolving loan fund for economic development.