Rapid City recorded strong sales tax growth in March and through the first quarter of 2026, with collections rising across most sectors of the local economy, officials reported.
Data presented Wednesday to the Rapid City Legal and Finance Committee showed total sales tax collections topping $21 million through March, up from $19.8 million during the same period in 2025. March alone generated more than $7.7 million, marking a record for the month.
General 2% sales tax collections increased 2.4% compared to March 2025, while first-quarter totals came in 5.2% above budget projections, according to the report.
Tourism-related tax collections were flat year over year in March but remained on track overall, finishing the first quarter slightly above projections by one-tenth of a percent. Officials noted the first quarter is typically the slowest period for tourism revenue.
Collections tied to the city’s Capital Improvement Program and Vision Fund also rose compared to both March and first-quarter figures from 2025.
Despite the gains, city officials cautioned that rising costs for services and infrastructure — including road, park and facility maintenance — continue to put pressure on budgets.
Comments