Watertown Sales Tax Collections Up 2.62% Year-to-Date Through November

Northeast Radio SD News - Watertown, SD - The City of Watertown’s sales tax collections continue to show growth, posting an overall increase of 2.62% through the first eleven months of 2025 compared to the previous year.

The positive performance is an encouraging indicator of steady economic activity within the city, with total sales tax revenue (combining the 1st Penny, 2nd Penny, and BBB taxes) reaching $20,940,698 from January through November 2025. This represents an increase of $534,913 over the $20,405,785 collected during the same period in 2024.

The momentum was particularly strong in November. Total sales tax collections for November 2025 saw a substantial boost of 4.76% over November 2024 figures, signaling a healthy start to the holiday shopping season and continued consumer spending in the community.

All sales tax categories demonstrated growth year-to-date, indicating broad strength across different sectors of the local economy:

·        General Fund (1st Penny): Revenue for the General Fund, which supports essential city services, increased by 2.59% through November.

·        Capital Improvement Fund (2nd Penny): Revenue dedicated to large-scale infrastructure projects also rose by 2.59%, providing strong support for future city development and maintenance.

·        BBB Sales Tax: Collections for the Bed Booze Board (BBB) Sales Tax, which funds specific, targeted local projects, experienced the highest proportional increase at 3.12%. This robust growth is optimistic news for the dedicated projects that rely on this revenue stream.

The comprehensive growth across all three sales tax categories reflects the success of local businesses and continued consumer confidence in the Watertown economy. The year-end results, including the busy month of December, are expected to solidify this positive fiscal trend further.