SIOUX FALLS, S.D. (AP) — The state that markets itself as “Great Faces, Great Places” is using Gov. Dennis Daugaard’s smile to lure businesses to South Dakota. The effort has led to 50 prospects in a month, with another month to go, officials say. It also has raised the ire of at least one official in another state.

Daugaard’s face is pictured on direct-mail postcards with the text, “Tired of taxes? Call me.” The $143,000 marketing campaign that also includes radio and print advertisements is aimed at businesses in Minnesota, California and Illinois, where taxes are higher than they are in South Dakota.

“We’re trying to portray we’ve got a very friendly governor that understands business exists to make a profit, and in South Dakota it’s OK to make a profit and keep a profit,” State Economic Development Commissioner J. Pat Costello told the Argus Leader. “The intent is to get peoples’ attention.”

The campaign has received attention in Minnesota, where Kurt Zellers, speaker of the Minnesota House, mentioned Daugaard’s ads in a news conference last week and said, “This is war.”

The rivalry between the neighboring states has existed for decades. In 1982, Gov. Bill Janklow wanted to debate with Minnesota Gov.-elect Rudy Perpich about Perpich encouraging businesses to stay in state rather than move or expand elsewhere.

Costello and Daugaard said South Dakota is just promoting its positive business environment. The state has no corporate income tax, no personal income tax, no personal property tax, no business inventory tax and no inheritance tax.

“We want them to know that South Dakota is consistently rated as one of — if not the most — business-friendly states in the nation,” Daugaard said.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (52)
  1. south dakota says:

    Love South Dakota… what a great state. The black hills are beautiful!

  2. Murph says:

    The water is putrid however!

    1. Betty says:

      Bottled water is much cheaper than the taxes you pay in MN, most of which do not go towards drinking water

      1. Ron says:

        Well Betty..what taxes? You think they pay “no” taxers? I have freinds that lkive there and they say the trade off is not that great. Sales tax on everything, higher property taxes, less services, etc. etc. How many fortune 500 companies in South Dakota? Then check and see how many are in Minnesota…..that might tell you something.

        1. Betty says:

          You must not have read the article. That’s OK most people dont. It say no corp tax, no property tax, no personal income tax and no inheritance tax. You would haver to have a pretty big sales tax to make up for all of these.

        2. Julie says:

          I have friends that live there too and the wages are horrible and sales tax is high. Most people have to work 2 jobs just to make it!! EVERYONE pays taxes, it’s just about where you want to “hang your hat”.

          1. Betty says:

            Wrong Julie,

            See the Jan 2011 article from CCO on the average taxes paid by each citizen. $1600 in SD and ovr $3500 in MN.

          2. mike says:

            I’m from SD. I make over double here than I did in Sioux Falls. Yes taxes are higher here but with the difference in wages I could not afford to go back to SD

  3. Julie says:

    “This is was”? I would say no contest. South Dakota is miles ahead of MN in renewable energy, taxes, and friendliness. Go South Dakota!!!!

  4. Julie says:

    oops, I meant ‘war”

  5. garage illogic says:

    Wing nut politics? No sports teams? No thanks. I like it here.

    1. FYI says:

      The wing nut politics reveal better education levels…

      1. Geronimo says:

        Not according to the ACT scores. South Duhkota loses again in that arena. The only thing you have going for you is open land but unfortunately you are trying to get rid of that aspect by developing and bringing in industry with the promise of lower taxes. Most of us probably would rather not hear about you. You are like little kids. Best seen and not heard.

        1. Moronimo says:

          You sir are one big moron.

          Live in your poverty state. Let me guess, you live in North Minneapolis too… must be nice!

  6. LuAnn says:

    Who would want to live in your state?? You have dirty business owners who pay their way under the table to get out of trouble and kill other people with no second thoughts about it. I once thought about living there but never after what I have seen. Your driving laws are not strict enough, people do whatever they want.

    1. Carl says:

      You must be talking about MN right?

    2. chuck in st paul says:

      Could you please cite the killings you refer to? Also the businesses that pay under the table? We’d all like to know.

      As for driving laws… the drivers in Minnesota are completely out of control now. Not only do they not come to a complete stop at red lights and stop signs, they actually drive through them at cruise speed. I watched a guy make a “left on red” at a major traffic light yesterday and it wasn’t into a one-way street. Speed limits here are whatever you can do. Etc.

    3. Redneck Purist says:

      What’s not to love? The good news about your comment is that you wouldn’t fit in here anyway. South Dakota is not for whining, big govt. types. Do us a favor and stay your arse in MN. We like it here (us being former MN businesses and Dayton’s money).

      1. SDSUcks says:

        Hicks that can’t make it in the big city. Whiners. We waaant more business! Our taaaxes are lower! So is our standard of livi- never mind that one, our taaaxes are lower!

        1. Another idiot says:

          Funny, I know a few VERY successful doctors that have come from South Dakota – making WELL OVER 300k a year.

          You tell me who can’t make it? LOL!

        2. Redneck Purist says:

          Define standard of living. Been to the Mall Of Somalia lately? I keep hearing that standard of living mantra being regurgitated by the liberals. If by standard of living you mean paying to see a cross submerged in a gay man’s urine, yeah, S.D. is lacking “culture”. But a wholesome, non-intrusive, place to live and raise a family. S.D. has us beat. You probably couldn’t find a decent pair of black, red and yellow spandex cycling shorts, a pound of fair trade organic coffee, a good therapist for your Yorkie, or raw fish wrapped in seaweed, but .357 shells and a nice rib-eye shouldn’t be a problem.

  7. Sporty007 says:

    Way to go South Dakota – do what you gotta do. Atleast they are trying to attract business unlike Minnesota which is doing it’s best to drive business out of this State with it’s high taxes.

    1. Pine ridge says:

      Yeah, Minnesota tries to get rid of business and SD likes to attract it! Right on! Only problem is people like living in aesthetically pleasing areas. If you want to run away from society and not compete then by all means, move out to the dirt plains.

  8. Dave Campbell says:

    Only decent roads in South Dakota are the ones that get federal funds! The old adage that you get exactly what you pay for could not be more true here! It is a beautiful state and has much to offer the outdoorsman, but that is where it ends folks!

    1. SD is great says:

      Much more land – affordable, and you can do as you please. It’s awesome out there.

      1. chuck in st paul says:

        Awww gee, ya mean no Nanny State? No high cash welfare? No ‘mommy’ and ‘daddy’ to protect me and pick up after me? Eeeek!! run away!

  9. chuck in st paul says:

    I’d like to know how much money they put into getting Dayton elected here. He’s the best thing both Dakotas have going for them.

    1. just sayin says:

      You are crazy.

  10. what_ever says:

    How big is the population of SD?

    If it’s so great why are you in a class with WY, MO, ND? You have a single House member and what 3 electoral votes? Do you even count as a state? you rank 46 of 51 in population for crying out loud, why if it’s the cats meow?

    1. Rico Suave says:

      Especially now with our burgeoning somali and arab populations. You gotta be just loving it here. Once all the businesses are done fleeing MN’s tax climate, So Dak will be bigger. More and more people are pulling the plug on MN and their failed liberal experiment, like Californians have fled for the state our next president is from. Pretty soon you and your unicorn riding friends and the somalis and jihadists will have MN all to yourselves. And you’ll think to yourself, what a wonderful world.

      1. Dirty SD says:

        “More and more people are pulling the plug on MN and their failed liberal experiment” Got a source for this claim or are you just a bloviating idiot?

        1. Rico Suave says:

          Why’d you have to bring up Joe Biden?

  11. Kevin says:

    They should target the Somali Community with this ad…….WINNING!!!!!

  12. Denny says:

    I am going to check it out. I own a small business. Computerized Machine Shop with engraving services. Rotary,Laser,Sand Blast,Sublimation. Can still do business in MN and expand with business in South Dakota. To bad Obama can’t understand to attract and keep business in the USA, you cannot take all of the profits. Working people will spend money and create more business and services. Governement work is not sustainable.

    1. some info says:

      Hey Denny,

  13. grizzlyman says:

    Those who think it is so great in MN obviously have not traveled much. I have lived in both states, and SD definitely allows one to keep more of what you earn. MN has more jobs. People in SD generally are friendlier and they don’t have as many of those that feel entitled. They also don’t have the twin cities, which is like a cancer spreading throughout the state, sucking up money and showing outrageous crime rates. SD lacks some of the cultural advantages of MN however is not as much of a nanny state, allowing one to at least feel free. It’s all in what you want. If you are a prissy little city liver, MN gets the nod, if you love the great outdoors and don’t like over regulation in every aspect of your life, SD wins. Sioux Falls is a beautiful mid sized city for those that like a larger city. If you like government to tell you if you can dig a pond or put up a retaining wall, or if you like the DNR to stop you every time you hunt or fish while acting like a SWAT team, MN is for you.

    1. just adding says:

      Rapid City has been BOOMING the last 5 years … TONS of developement going on out there. It’s rather impressive.

    2. M Br says:

      Most of that regulation is because someone, at some point, tried to take advantage of the system.
      The DNR is tasked with enforcing our fishing laws, like limits and such. This arises because out of staters come here (and some Minnesotans) and over fish. South Dakota has few lakes so this doesn’t matter as much. We base a large part of our tourism on that fishing, which brings in boatloads of cash to local businesses. It’s a tradeoff.
      As for corporate legislation: If you don’t have it, then companies will do as they please, including polluting the environment if it suits them. Again, it’s happened so we have legislation regarding it.
      If putting your training wall or pond in threatens watershed that others share, don’t you think it’s fair to have to check first? Many didn’t. Again, somebody tried to take advantage of the system in the past and now we have to have laws regarding it. How many ducks/waterfowl did you see out in South Dakota? Not nearly as many as we have here, did you?
      The funny part is, that if their campaign is successful, then they will eventually see (sooner than later) the same regulations we have or they’ll be calling themselves South Cesspool.

    3. garage illogic says:

      I also have lived and traveled in both states. You can actual see where the Minnesota road ends and the poor condition SD roads start. Mn has it all over SD. Sorry to burst your bubble. If you want to go to the land of cafe/casino, laundromat/casino…etc. Then SD is for you.

      1. another dummy says:

        Ummm, their roads last many more years than Mn.
        They are made with quartzite and also their highways are concrete.

        Boy don’t you feel like an idiot?

        1. garage illogic says:

          No, cause I have actually driven there, not guessing from a terminal.

          1. Jake says:

            Actually, I was there last summer, and I thought that their roads were quite good, better than most roads I’ve driven on in MN the past few years. The Black Hills and surrounding areas are gorgeous, with NO stupid bike trails, very little crime, they actually do enforce immigration law there. The people are friendly, criminals are punished, and NO idiotic welfare programs. I plan on retiring there someday. SCREW the big cities of MN. Even St. Cloud is no longer safe.

  14. I'm on my way! See ya! says:

    I have it on authority that the politicians in South Dakota know how to balance their state’s budget and, get this, they’re able to accomplish it during their “regular” session!

    I was also told they have no plans at all to stick their taxpayers with a bill for new sports stadiums, expanded welfare programs, or unreasonable benefits for public employees.

    I guess I’ll start packing. Sorry, but you’re going to have to keep Zygi and all your MN politicians, including “crazy eyes.”

    1. buzzcut says:

      The Vikings don’t want to move to South Dakota for lower taxes??..that’s shame.

  15. uncle sam says:

    incapable of being divided, for example: one nation indivisible
    united states
    one nation

  16. MN sucks says:

    South dakota has minnesota beat in a lot of aspects.

    Number 1, starting with their politics. 🙂

  17. TheDonald says:

    Whats the difference between South Dakota and Yogurt you ask?

    Yogurt has active culture.

    All jokes aside SoDak is a great place and great people live there. Check it out if you have never been there.

  18. mp says:

    Lived there most of my life, if it wasn’t for my wife’s family living here in Mn I wouold still be there today…but guarantee, when the time comes, I’ll be spending my retirement dollars in South Dakota

  19. StraycatStrut says:

    Gotta like it when SD advertises in MN to “come on over…were friendly”. By the way….. does Gov Dayton advertise in SD to “come on over” as part of his “Jobs Tour” (waste of breath)…?? Whooops… gotta remember, our Gov is Medicated Mark and holds zero ideas….. except the old Democrat tirate….. “Raise taxes… spend more”….

  20. Jake says:

    Minnesota SUCKS, for lots of reasons, they are just too stupid to believe it. I plan on retiring in SD. I seriously doubt that many of you who are slamming SD have ever been west of Sioux Falls.

  21. O says:

    Why don’t all of you whiners pack your bags and head over to South Dakota and stay in your land of make believe GOOD BYE!!!!!!

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