Simplified: Sioux Falls is seeing the highest rate of growth in sales tax revenue since the early 90s.
Why it matters
- Sioux Falls' sales tax is up more than 20 percent from where it was in October 2019, the highest rate of growth in the city since the early 90s, City Finance Director Shawn Pritchett said.
- One of the reasons for the growth is an increase in sales tax revenue from online retailers, a relatively new source of revenue for the city (also due in part to a court case South Dakota took all the way to the U.S. Supreme Court – for any legal history nerds reading.)
- The latest sales tax numbers are overall good sign of recovery since the pandemic, he added, but rising costs due to inflation will offset some of those gains.
"Yes, we will have some additional revenues coming in, but we're also expecting the cost of our projects will go up as well," Pritchett said.
What else does the latest city financial report tell us?
Inflation is up. Much of what's driving the inflation increase of 6.2 percent is the energy sector, specifically, the rising cost of natural gas, Pritchett told City Council Tuesday.
Unemployment is down. Unemployment dropped to 1.9 percent in September, which is as low as it's been in the last 20 years, Pritchett said.
Building permits are up. It was apparent before today, but Sioux Falls is still on track to hit the $1 billion mark in building permits this year. At the end of October, the city was at $917.8 million in building permits for the year.