Nov. 16, 2022

Sales tax growth keeps outperforming inflation in Sioux Falls.

Sales tax revenue received in October, which generally represents actual sales in September, is up more than 12 percent compared with a year ago. The 12-month rolling average is 14.5 percent.

Revenue is “still coming in relatively strong even with 8 percent inflation rates,” said Shawn Pritchett, the city’s director of finance, who reported the results Tuesday to the City Council.

Inflation in October was 7.7 percent.

“I didn’t think 7.7 percent would be positive, but it does appear we have at least peaked for now,” Pritchett said.

After spiking at more than 40 percent inflation, energy is at a 17.6 percent increase, while food is at 10.9 percent.

“It’s still an elevated rate, but the market is seeing some optimism,” Pritchett said.

The city’s entertainment tax came in at a 12.5 percent increase in October.

“That’s the strongest we’ve seen in about three months,” Pritchett said.

The 12-month rolling average is 17.9 percent.

The lodging tax is “coming in very strong, up 14 percent over where they were last year,” Pritchett said. “It’s a very strong figure when you see we’re getting back to a more normalized routine” with better occupancy and hotel revenue.

The state hasn’t yet provided a breakdown of tax revenue by industry.