City Reports Modest Increase In Sales Tax Receipts For 2020 Despite COVID Impacts
CITY REPORTS MODEST INCREASE
IN SALES TAX RECEIPTS FOR 2020
Building and buying trends remained
strong in 2020 despite COVID
RAPID CITY, SD—Despite the restrictions, closures and various impacts resulting from the COVID-19 pandemic, Rapid City experienced a 3.32 percent increase in sales tax receipts in 2020 over the same 12-month time period from 2019.
The City’s sales tax receipts totaled $30,321,860 ($30.32 million) for 2020. In 2019, the City’s tax receipts totaled $29,347,476 ($29.34 million).
The City’s Finance Office reports sales tax receipts increased in nine of the 12 calendar months of 2020, compared to the same monthly figures from the previous year. Decreases were experienced in the March to May time frame last year, coinciding with the onset of the COVID-19 pandemic in South Dakota and the nation.
“In reviewing the numbers, two of the biggest and most surprising developments coming out of 2020 locally, were the strong building permit numbers and building activity that continued throughout the year, and the increase in sales tax receipts in the community, despite the impacts of COVID,” said Mayor Steve Allender. “Given where we were last spring with the onset of COVID, I am pleasantly surprised at the building and economic activity that remained solid and strong throughout the year.
“I am also pleased with the slight increase in receipts for December, especially after the Lakota Nation Invitational was forced to cancel due to the COVID pandemic. Residents and visitors continued to support our local businesses during the holiday season.”
The Rapid City Council will formally acknowledge the December sales tax report at Monday night’s meeting.
The City's Building Services Division issued the second-most building permits in any year in the City's history in 2020 (5,598) with the fifth-highest year recorded for annual building permit valuation ($275.25 million).
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