Watertown Sales Tax Collections Rise in 2026, Led by Strong Growth in BBB Revenue
Northeast Radio SD News – Watertown, SD - The City of Watertown’s latest sales tax report shows continued year‑over‑year growth across all three of the city’s sales tax categories, with 2026 collections outpacing both 2025 and 2024 through the first seven months of the year.
The data comes from the city’s Sales Tax Comparison History report, which tracks the 1st Penny (General Fund), 2nd Penny (Capital Improvement), and BBB (Bed, Board & Booze) taxes.
Strong Year‑to‑Date Growth in 2026
Through July, Watertown has collected $6,636,815 in both the 1st Penny and 2nd Penny taxes — a 4.84% increase over the same period in 2025 and a substantial gain over 2024.
The BBB tax, which is tied to lodging, restaurants, and alcohol sales, is also showing notable growth. Year‑to‑date collections total $850,066, up 10.88% from 2025.
Month‑by‑Month Performance
The report shows consistent monthly increases across the first seven months of 2026:
· January: 1st Penny up 5.09%; BBB up 13.72%
· February: 1st Penny up 4.71%; BBB down 4.28%
· March: 1st Penny up 7.29%; BBB up 17.33%
· April: 1st Penny up 0.96%; BBB up 16.18%
· May: 1st Penny up 3.39%; BBB up 9.21%
· June: 1st Penny up 3.45%; BBB up 13.71%
· July: 1st Penny up 9.26%; BBB up 9.58%
12‑Month and 6‑Month Trends
The report also includes rolling period comparisons:
· Most recent 12‑month period: $11,497,637, up 5.05% from the prior year
· Most recent 6‑month period: $5,793,253, up 4.80% from the same prior period
BBB Tax Shows Strongest Growth
While the 1st and 2nd Penny taxes are tracking closely together — as expected, since both are 1% citywide taxes — the BBB tax is growing at a faster rate. Year‑to‑date BBB collections are up 10.88%, suggesting increased hotel stays, restaurant activity, and visitor spending.
