RAPID CITY, S.D. – Rapid City’s sales tax receipts for the first half of 2025 have surpassed $42.67 million, marking a 3.61 percent increase over the same period in 2024. This growth reflects a strong economic trend in the community, located in the heart of the Black Hills.
The city’s finance director, Daniel Ainslie, stated the first half totals were “a pleasant surprise and higher than anticipated.” He noted higher receipt totals across all categories and expressed hope for the trend to continue through the summer months.
June was a record month for the city, with sales tax receipts totaling $8.58 million. This is the first time in Rapid City’s history that monthly receipts have exceeded $8 million. The June total was more than $600,000 greater than June 2024 receipts.
Key findings from the first-half sales tax report, which will be presented at Wednesday’s Legal and Finance Committee meeting, include:
- The general fund, which supports essential services such as police, fire, and parks, collected a record $19.93 million. This is a 3.83 percent increase over the first six months of 2024. The general fund’s collection trend is 1.1 percent higher than budgeted.
- Tourism sales tax receipts reached nearly $2.9 million, a 3.18 percent increase. The June tourism sales tax collection was 8.99 percent higher than in June 2024, signaling a strong start to the tourist season in the Black Hills.
- The Capital Improvement Fund, which finances infrastructure projects like road reconstruction and park enhancements, collected over $11.51 million, a 3.45 percent increase from the same period last year.
- The Vision Fund, which supports legacy projects, generated more than $8.33 million, a 3.45 percent increase from the first half of 2024.
Collections have increased in 58 of the last 61 months, a trend that began after a three-month decrease during the March-May 2020 COVID-19 restriction period.
