Watertown Sales Tax Collections Show Steady Growth to Start 2026

Northeast Radio SD News – Watertown, SD - Watertown’s latest sales‑tax report shows the city entering 2026 with continued economic momentum, driven by gains in both the 1st and 2nd Penny sales taxes and a strong start for the BBB (Bed, Board & Booze) tax.

According to the city’s financial data, January and February 2026 outperformed the same months in 2025, marking a positive year‑to‑date trend across all three major revenue categories.

The city collected $1,647,911 in 1st Penny revenue through February, up from $1,570,866 during the same period last year — a 4.90% increase. The 2nd Penny mirrored that performance, also rising 4.90% year‑to‑date.

January posted the strongest month so far, with $843,562 collected across all penny categories, a 5.09% increase over January 2025. February followed with $804,349, up 4.71% from the previous year.

The report notes: “Jan — 843,562 … Increase 40,854 … 5.09%” and “Feb — 804,349 … Increase 36,191 … 4.71%.”

BBB Tax Starts 2026 With Double‑Digit January Growth

The city’s BBB tax — which reflects lodging, dining, and entertainment activity — also showed early strength. January collections reached $100,820, up 13.72% from last year. February dipped slightly, down 4.28%, but year‑to‑date totals remain ahead of 2025 by 4.35%.

12‑Month Trend Shows Continued Economic Expansion

Watertown’s broader economic picture remains positive. Over the most recent 12‑month period, the city collected $11.27 million in 1st Penny revenue, compared to $10.57 million in the prior year — a 6.57% increase. The BBB tax rose 4.08% over the same period.

The report highlights: “Most Recent 12‑month Period — 11,268,277 … Increase 694,889 … 6.57%.”

Six‑Month Snapshot Also Positive

Looking at the most recent six months, 1st Penny collections totaled $5.55 million, up 4.84% from the same period a year earlier. BBB revenue for the same timeframe increased 1.87%.

With both pennies trending upward and BBB revenue holding steady, the city’s early‑year numbers point to continued consumer activity and a stable local economy heading into spring.