- South Dakota's state and local business taxes take 5.2% of our gross state product (i.e., the total economic activity generated by our businesses). That ties us for 18th highest with Louisiana and Florida.
- Nationally, state and local business taxes take 4.9% of gross state products.
- The People's Republic of Minnesota only hits its businesses up for 4.3% of its GSP. (Minnesota also does 7.7 times the business South Dakota does, with 6.5 times our population.)
- The state taking the biggest chunk of GSP in business taxes: freedom-lovin', oil-slurpin' Alaska, 22.3%.
We do make out a little better on the individual side. Non-business taxes (what we workers pay) amount to just 3.5% of GSP, the fifth-lowest rate in the nation. But that individual advantage comes on the backs of businesses. South Dakota lays 61.7% of its state and local tax burden on businesses. That's the fourth-highest business burden in the nation. Nationally, businesses bear 44.1% of the state and local tax burden.
Overall, we pay just 8.7% of our GSP in state and local taxes, tied with Texas for the third-lowest rate in the nation. But when you break the numbers down by who pays and by percentage of the economic pie, you see that South Dakota isn't necessarily the business tax haven it claims to be.
p.s.: Stan! Wyoming's business tax collections equal 9.2% of WY-GSP. I hope that all comes from oil and coal, not independent authors. :-)