Derek Johnson, state economist with the governor’s Bureau of Finance and Management, and LRC Chief Fiscal Analyst Jeff Mehlhaff (left to right) present to the Revenue Projection Subcommittee in Pierre during the 2023 legislative session. (Makenzie Huber/South Dakota Searchlight)
South Dakota is on track to see negative sales tax revenue growth for the current fiscal year.
As the largest source of revenue for state government, the trend is concerning for lawmakers heading into the 2025 legislative session and beyond, fiscal experts told lawmakers on the Joint Committee on Appropriations Thursday in Pierre.
Sales tax collections so far this fiscal year are down nearly 4% compared to the same time last year, a difference of about $19 million. If that keeps up, it would be the only time collections have declined in the last 14 years except for last year, when a slight dip was attributed to the reduction of the state sales tax rate from 4.5% to 4.2%.
The state’s total revenue collection July through October fell over $41 million compared with the same period last year .