RAPID CITY, SD—August sales tax receipts for Rapid City continued to reflect “solid growth” according to City officials. The August sales tax report, which will be shared at Wednesday’s Legal and Finance Committee meeting, reflected continued growth across nearly all sectors of the Rapid City economy.

            Overall year-to-date sales tax receipts for Rapid City total more than $62.5 million, compared to $59.1 million for the same eight-month period in 2025.

General two percent sales tax revenues for August increased 3.9 percent compared to August 2025.  August’s tally follows reports from July and June, which reflected 6.9 percent and 6.6 percent increases respectively over the same months in 2025.

Year-to-date collections are trending 5.4 percent above the 2026 budget projection. Rapid City Finance Director Daniel Ainslie says the August numbers continue to show “stronger than expected economic activity”.

Ainslie said tourism activity was the one sector to ‘underperform’ during the month, with tourism-related sales tax collections declining 2.4 percent in August. 

“The August tourism decline in collections made it the weakest month for the sector this year,” said Ainslie. “This downturn contrasts sharply with the strong growth we experienced in July.”

Ainslie attributes the August decline in tourism receipts to a softer-than-expected Sturgis Motorcycle Rally.  Year-to-date tourism sales tax collections are 1.5 percent below budget projections.

In addition to tourism and general sales tax collections, sales tax receipts are up nearly $1 million year to date for CIP and up nearly $700,000 year to date for Vision Fund classifications when compared to the January through August 2025 receipts.

Ainslie indicated while sales tax collections are continuing to exceed budget projections, the cost to deliver City services and make repairs to city roads, parks and facilities continues to climb. 

The City’s Legal and Finance Committee will meet Wednesday at 12:30 p.m. in Council Chambers of City Hall.