Published April 1, 2000 | April 2000 issue
166 economic development corporations, only about 40 of which have paid staff, according to a state source.
The state allows cities to add up to a penny of local sales tax onto the existing state sales tax, the revenue from which can be used for a variety of programs, including economic development. Currently, 116 communities are collecting this local sales tax, but no data is available on how much revenue is collected, or how it is spent.
The state's Revolving Economic Development and Initiative (REDI) and the local sales tax are both popular with local communities, according to an official in the Governor's Office of Economic Development. In 1998, the REDI board approved all 25 financing proposals totaling almost $8 million. There are also 84 revolving loan funds available from 69 organizations statewide, with a total of $132 million in capital.
The state offers a variety of financing and other assistance programs, including Economic Development Finance Authority, Venture Capital Investment Fund, Guide to Opportunity for Local Development (GOLD), Workforce Development Program, MicroLoan South Dakota and tax increment financing.
Very little is offered in the way of direct tax incentives because South Dakota is the only state in the nation with no corporate or personal income tax, personal property tax or business inventory tax.
fedgazette, July 2000