South Dakota named best state for business taxes

South Dakota has the nation's best tax climate for business in 2011, according to the Tax Foundation. The Mount Rushmore State won the distinction for the second year in a row, beating out also sparsely-populated Alaska for the number-one spot. Wyoming, Nevada, Florida, Montana, New Hampshire, Delaware, Utah, and Indiana round out the top 10.

The 2011 version of the State Business Tax Climate Index (SBTCI), released this week by the Tax Foundation, ranks states according to their tax systems and how they affect competition for new business and growth. Rankings are chosen not based merely on business tax burdens, but on a combination of tax factors that influence corporate decisions. Specifically, the rankings are based on five areas: major business taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes.