Rapid City–Rapid City’s sales tax collections remained strong in July, with city officials reporting significant gains across much of the local economy.
According to a report being presented to the City’s Legal and Finance Committee, general two percent sales tax revenues increased 6.7 percent compared to July 2025. The increase follows a 6.6 percent gain reported in June, signaling continued economic momentum.
Year-to-date collections are running 5.8 percent above the city’s 2026 budget projections. Finance Director Daniel Ainslie said the latest figures indicate stronger-than-expected economic activity throughout the community.
Tourism-related tax revenues rose 6.2 percent in July, marking the strongest tourism month in the past six months. Ainslie credited the boost in part to the Real America 250 Birthday Bash celebrations, which drew large numbers of visitors and residents to Rapid City during the extended holiday period.
Additional sales tax categories also posted gains. Capital Improvement Program collections are up more than $880,000 year-to-date compared to 2025, while Vision Fund revenues have increased by more than $637,000.
Despite the positive numbers, Ainslie noted that rising costs for city services, infrastructure repairs, parks, and facilities continue to put pressure on city budgets.
The Legal and Finance Committee meets Wednesday at 12:30 p.m. in the City Hall Council Chambers to review the report.
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