STURGIS, S.D. – The Sturgis City Council did not get a rosy sales tax report this past week.
Sales in the month of May 2025 are 14.67% lower than May of 2024. Sales for the first five months of 2025 are 2.52% higher than in the same period in 2024, and 0.50% higher than in 2023.
The modest year-to-date gains show overall growth, but the pace appears to be slowing and the sales tax declines in March and May are notable and may point to emerging weakness in consumer activity that warrant close monitoring.
Meanwhile, the Triple B Tax was also down.
The 1% sales tax is imposed on specific purchases such as lodging, eating establishments, alcoholic beverages and admissions to places of amusement as well as athletic and cultural events. For the month of May 2025, these related sales are 32.63% Lower than May of 2024. Sales for the first five months of 2025 are 11.17% lower than in 2024, and 13.54% lower than 2023.
The MGRT has trended down since February and the significant drop in May may indicate weakness in tourism and entertainment activities as the city enters the summer tourism season.
