Strong Rapid City Sales Tax Receipts Signal Continued Economic Growth

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RAPID CITY, S.D. – Rapid City continued its streak of increased sales tax collections, surpassing $50.82 million in total receipts for the first seven months of 2025. This total marks a 3.57 percent jump-or nearly $1.8 million-over the $49.07 million collected during the same period in 2024.

The city also set a record for July sales tax collections with more than $8.14 million received. This made July the second consecutive month with sales tax receipts topping $8 million, a first for the city of Rapid City.

Receipt totals were higher across various classifications for the January through July period compared to last year. Tourism sales tax was 3.72 percent higher, the general fund saw a 3.7 percent increase, and the Vision Fund was 3.41 percent higher.

“July totals remained pleasantly strong and our numbers for the first two months of the summer remain higher than anticipated,” said City Finance Director Daniel Ainslie. “In all categories, we are seeing higher totals over the first seven months. Obviously we hope the trends continue.”

The city’s strong economic activity, benefiting the Black Hills area, is further detailed in the 2025 January through July sales tax report, which is scheduled to be shared at Wednesday’s Legal and Finance Committee meeting.

Among the key findings in the report:

  • General fund sales tax receipts through July 2025 totaled more than $23.68 million, a record for the first seven months of the year in that category, and a 3.7 percent jump over the 2024 period. The general fund supports essential services such as police, fire, library, and parks. The current trend is 0.9 percent higher than budgeted.
  • The tourism sales tax collected in the first seven months of 2025 was more than $3.55 million, a 3.72 percent increase over the first seven months of 2024, highlighting the importance of South Dakota tourism.
  • The Capital Improvement Fund collected more than $13.68 million, an increase of 3.41 percent, which funds infrastructure upgrades including road reconstruction and park enhancements.
  • The Vision Fund generated more than $9.9 million, a 3.41 percent increase, funding facilities like The Monument and Roosevelt Swim Center that contribute to the quality of living in Rapid City.

Collections have now increased in 59 of the 62 months since the three-month decrease experienced during the COVID restriction period in the spring of 2020.