Watertown Sales Tax Collections Rise in 2026, BBB Revenue Jumps 10.53%

Watertown’s sales tax collections for the first six months of 2026 continue to trend upward, according to the city’s latest Sales Tax Comparison History report. Year‑to‑date figures show increases across the 1st Penny General Fund, 2nd Penny Capital Fund, and BBB (Bed, Board & Booze) tax, reflecting continued economic activity through mid‑year.

1st Penny – General Fund Up 4.23% Year‑to‑Date

The city has collected $4,515,242 in first‑penny revenue so far in 2026, compared to $4,331,898 during the same period last year — an increase of $183,344, or 4.23%.

Monthly performance highlights include:

• January: $843,562 (up 5.09% from 2025)

• February: $804,349 (up 4.71%)

• March: $953,760 (up 7.29%)

• April: $909,839 (up 0.96%)

• May: $1,003,732 (up 3.39%)

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June collections have not yet been reported.

2nd Penny – Capital Fund Mirrors General Fund Growth

The 2nd Penny Capital Fund shows identical month‑to‑month performance to the General Fund, also totaling $4,515,241 year‑to‑date — a 4.23% increase over 2025.

This revenue supports major infrastructure and capital improvement projects throughout the city.

BBB Tax Sees Stronger Growth at 10.53%

Watertown’s tourism‑related BBB tax continues to outperform the general sales tax categories. Year‑to‑date collections total $571,841, up from $517,347 last year — an increase of $54,494, or 10.53%.

Monthly highlights include:

• January: $100,820 (up 13.72%)

• March: $124,916 (up 17.33%)

• April: $119,958 (up 16.18%)

• May: $133,898 (up 9.21%)

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February was the only month showing a decline, down 4.28% from 2025.

12‑Month and 6‑Month Trends Show Continued Momentum

Across the most recent 12‑month period:

• 1st Penny: $11,374,576 (up 5.49%)

• 2nd Penny: $11,374,575 (up 5.49%)

• BBB: $1,397,663 (up 5.68%)

For the most recent six‑month period:

• 1st Penny: $5,581,839 (up 4.64%)

• 2nd Penny: $5,581,838 (up 4.64%)

• BBB: $680,279 (up 9.18%)

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Overall Outlook

The city’s mid‑year sales tax performance shows stable growth in core revenue streams and strong gains in tourism‑related activity. With June data still pending, Watertown remains on pace for another year of positive sales tax collections.

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