Rapid City’s sales tax collections remained strong in May, with general two-percent sales tax revenues increasing 6.3 percent compared to May 2025, according to Finance Director Daniel Ainslie.
Ainslie told the City Council’s Legal and Finance Committee on Wednesday that year-to-date collections are running 5.6 percent above 2026 budget projections, reflecting stronger-than-expected economic activity.
Tourism-related sales tax collections also rose, increasing 5.2 percent in May. For the first five months of the year, tourism revenues are nearly on target with budget expectations, coming in just 0.1 percent below projections. Ainslie noted May was the strongest tourism month in the last three months as the city enters the peak summer travel season.
Sales tax receipts supporting the Capital Improvement Fund and Vision Fund also increased compared to the same period last year.
Despite the positive revenue trends, Ainslie cautioned that rising costs continue to impact the city’s ability to provide services and maintain infrastructure. Expenses for city operations, road repairs, parks, and public facilities continue to climb, even as tax collections outperform expectations.
The General Fund supports core services such as police, fire, libraries, and parks and recreation, while the Capital Improvement Fund finances infrastructure projects. The Vision Fund helps pay for major community enhancement projects, including past investments in The Monument, Roosevelt Swim Center, and Mount Rushmore Road improvements.
Comments