Rushmore State News

South Dakota's 2023 legislative session witnessed several developments favoring small business owners. Jason Glodt, State Director for the National Federation of Independent Business (NFIB), highlighted efforts to advocate for these entrepreneurs in Pierre. Sen. Casey Crabtree and Sen. Kyle Shoenfish expressed appreciation for the role of small business owners in keeping the state's economy active.

Glodt noted, "South Dakota consistently ranks as one of the most business-friendly states in the nation for good reason. We have no corporate or personal income tax, fewer government regulations, and fewer red tape and burdensome government regulations than some of our other surrounding states. South Dakota has one of the lowest state tax burdens in the nation, a growing workforce, and a work ethic second to none. Business is good in South Dakota and it got even better after the 2023 Legislative Session."

In the 2023 session, significant actions were taken, like implementing the largest tax cut in the state's history. The state sales tax was reduced from 4.5% to 4.2%, predicted to save about $500 million over four years. Additionally, unemployment insurance trust fund taxes for businesses were cut by $18 million annually. These changes are expected to positively impact small businesses and taxpayers.

Challenges remain, however. The NFIB's survey revealed that while optimism for the future among small business owners is stable, it remains below the long-term average. Inflation and workforce availability are critical concerns. As a remedy, $200 million is allocated for workforce housing grants and incentives, and a bill for occupational licensing reciprocity allows easier job access for out-of-state professionals.

The NFIB lauded these legislative advancements, noting, "Not only did the Legislature pass business-friendly bills, but they also defeated numerous pieces of legislation that would have increased taxes or regulations that would have been burdensome and costly for small businesses."

The state's legislative approach continues to support a strong economy, focusing on small business owners who are vital to its economic fabric.