ABERDEEN, S.D. (By Elisa Sand esand@aberdeennews.com) – The state’s December sales tax report shows continued growth in sales tax revenue for Aberdeen.
According to the report, which reflects sales taxes collected in October and reported to the state in November, Aberdeen’s collections were 10% higher than the December 2019 report. It shows $1,698,587 in sales tax revenue compared to $1,543,860 on the December 2019 report.
Aberdeen wasn’t alone with a double-digit increase on the December report. Rapid City saw a 10.68% increase, or about $500,000.
Aberdeen’s increase continues a 2020 trend of unusually high sales tax collections. The numbers not only reflect the city’s standard 2% sales tax, but also the 1% tax charged on hotel and motel stays, restaurant meals and alcohol sales.
The revenue from that 1% tax goes into the city’s promotion fund and provides money for various organizations, including the Aberdeen Area Chamber of Commerce, the Aberdeen Area Convention and Visitors Bureau and the Aberdeen Downtown Association. While overall tax revenues were up last year, with fewer events, the city’s 1% tax revenues dropped. However, they did recover some compared to early in 2020.