PIERRE, SD — South Dakota has initiated a direct mail campaign to attract businesses away from other states and setup shop in South Dakota instead.

The direct mail piece used in the campaign features Gov. Dennis Daugaard along with the headline, “Tired of taxes? Call me.”

The Governor’s Office of Economic Development in Pierre, SD has the states of Illinois, Minnesota and California in its sights.

Pierre is located in Hughes County, South Dakota in the central part of the state about 226 miles northwest of Sioux Falls.

The thrust of the mailing list campaign is to use the relatively low taxes in South Dakota to persuade businesses in other states with higher taxes to relocate to South Dakota.

South Dakota taxes at a glance:

  • No personal income tax
  • No corporate income tax
  • No personal property tax
  • No business inventory tax
  • No inheritance tax

Apparently the campaign is working and has generated 50 leads between Minnesota and Illinois, so far. Call backs from California are just beginning.

The direct mail campaign is part of a total marketing effort involving print, radio and mailing list ads conducted by the state of South Dakota at a total cost of nearly $143,000.

The mailing list was comprised of a little over 7,800 companies to be contacted by mail and by phone.

Pat Costello, the commissioner for the Governor’s Office of Economic Development, made the following statement about the mailing list campaign in an article appearing in The ArgusLeader.com website:

We’re out there just trying to promote South Dakota and the business environment we have, the positive business environment — tax structure, low regulation, high productivity workforce — it’s something we’re not afraid to tell people.

The mailing list campaign was triggered after successfully attracting some California businesses and after receiving some unsolicited requests from Illinois businesses. According to the ArgusLeader.com article, the purpose of the marketing campaign is “to educate business leaders about benefits of operating in South Dakota.”

South Dakota is hoping that the current economy might cause businesses in other states to consider South Dakota for relocation and/or expansion.

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