Document Type

Thesis - Open Access

Award Date


Degree Name

Master of Science (MS)

Department / School



In recent years, the people of South Dakota have demanded a greater number of governmental services as well as an expansion of existing services. These demands have brought about a need for additional revenue, which creates a strong incentive for a state to adopt new taxes. A tax on the income of unincorporated businesses may be a possible source of additional revenue. Therefore, the first reason for undertaking the study is the need of the state of South Dakota for additional revenue. The second reason for undertaking the study is that an unincorporated business income tax may be needed in South Dakota to maintain equity. The principle of equity demands that all individuals and businesses pay a fair share of the expense of government. If South Dakota, in its search for additional revenue, should adopt a corporation income tax and a personal income tax; an unincorporated business income tax may be needed to maintain equity. Objectives of the study: the objectives of the study are: (1) to present the unincorporated business income tax as it is levied in other states and (2) to estimate the annual revenue an unincorporated business income tax would return to South Dakota. Method and procedure: The District of Columbia and the states of Connecticut, New York, and Rhode Island were found to levy an unincorporated business income tax. These three states and the District of Columbia were contacted and the structure of the unincorporated business income taxes levied by them was determined. The following were considered to be the most important structural elements: (1) the definition of gross and net income, (2) the definition of unincorporated business, (3) the method of allocation, (4) the rate used, and (5) the system of penalties and appeals.

Library of Congress Subject Headings

Income tax -- South Dakota
Revenue -- South Dakota


Includes bibliographical references



Number of Pages



South Dakota State University