Nov. 17, 2021

Sioux Falls sales tax climbed 21 percent according to the October report, which represents sales from September.

That continues a yearlong theme, with a rolling 12-month increase of 15 percent.

“It is very much in line with many of the trends you’ve seen here,” said Shawn Pritchett, city finance director, who reported the results to the City Council on Tuesday.

Sales tax revenue also is up 23 percent when compared with 2019. That includes significant double-digit increases in many industries, led by remote retailer sales, or online sales, which were up 96 percent in September compared with two years ago.

Manufacturing is up 61 percent, and lumber, hardware and garden is up 33 percent. Department store sales tax revenue is up 19 percent compared with 2019.

The entertainment tax was up 28 percent in October’s report and 19 percent for the rolling 12-month period. It’s also up 17 percent from the same time in 2019.

“That’s being driven by the restaurant industry here locally as well as the recovery of the hospitality and hotel sectors,” Pritchett said.

Sales tax at eating establishments was up 22 percent in September compared with 2019.

Unemployment, at 1.9 percent, hasn’t been that low in Sioux Falls in 21 years, Pritchett said.

“That’s not to say that we haven’t hovered around 2 percent for many years,” he said. “We are certainly at the bottom level of what we’ve seen historically.”

Inflation at 6.2 percent also has not been that high in Sioux Falls for at least two decades, he said, adding much of it is being driven by the energy sector. When food and energy are factored out, inflation is at 4.2 percent.