RAPID CITY, S.D. – The local economy continues to show signs of growth as sales tax revenue through the third quarter of 2025 reached a record high. According to a new report from the City Finance Office, Rapid City, South Dakota, generated more than $67.1 million in overall sales tax revenue during the first nine months of the year.
The year-to-date total represents a 3.4 percent increase over the same period in 2024, when the city collected $64.9 million. September 2025 set a specific monthly record with collections totaling $8,027,480. This marks the fourth consecutive month that receipts have surpassed the $8 million benchmark.
“We continue to be pleased at the overall sales tax numbers both for the month-to-month totals as well as through the third quarter of the year,” said City Finance Director Daniel Ainslie. “In all categories, we are seeing higher totals through the third quarter. Rapid City’s sales tax numbers are holding strong, especially compared to the rest of the state.”
The summer season proved particularly lucrative for the city. From June through September, total receipts hit a record $33.03 million, compared to $31.7 million during the same four-month window in 2024.
City officials noted that the consistent growth helps fund vital municipal operations. The General Fund, which supports police, fire, parks, recreation and the library, received a record $31.2 million through September. This total is a 3.53 percent increase over the previous year and is currently trending 0.81 percent higher than the budgeted amount.
The report also detailed growth in specific allocation funds:
- The Capital Improvement Fund collected more than $18 million, a 3.21 percent increase over 2024. This fund finances infrastructure upgrades, including road reconstruction and overlays.
- The Vision Fund, which supports legacy projects such as The Monument and Roosevelt Swim Center, generated over $13 million, also reflecting a 3.21 percent increase.
- Tourism sales tax collected in the first nine months of 2025 exceeded $4.8 million, a 3.73 percent increase year-over-year.
The financial data indicates a long-term positive trend for Rapid City, South Dakota. Since the three-month decrease experienced during the COVID-19 restriction period in early 2020, sales tax collections have increased in 61 of the last 64 months.
