Watertown Sales Tax Collections Up 6.11% 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 6.11% through the first 11 months of 2025 compared to the previous year.

This positive fiscal performance indicates steady economic activity in the city. Total sales tax revenue—combining the 1st Penny-General, 2nd Penny-Capital, and Bed, Booze, and Board (BBB) taxes—reached $21,484,001 from January through November 2025. This represents an increase of $1,215,758 over the $20,268,243 collected during the same period in 2024.

Strong Momentum in November

The local economy maintained high momentum through the fall. Total sales tax collections for November 2025 saw a boost of 4.19% over November 2024 figures. Specifically, combined 1st and 2nd penny collections rose by 4.34%, while BBB tax collections increased by 3.00% for the month. These figures signal a healthy start to the holiday shopping season and continued consumer spending in the community.

Growth Across All Categories

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

·        General Fund (1st Penny): Revenue for the General Fund, which supports essential city services, increased by 6.11% through November.

·        Capital Improvement Fund (2nd Penny): Revenue dedicated to large-scale infrastructure projects also rose by 6.11%, providing strong support for future city development and maintenance.

·        BBB Sales Tax: Collections for the Bed, Booze, and Board tax—which typically funds lodging, eating establishments, and alcohol admissions—experienced a 4.33% increase year-to-date.

Sales Tax Comparison (Jan – Nov)

Tax Category	2025 Collections	2024 Collections	% Increase
1st Penny (General)	$10,124,635	$9,542,046	6.11%
2nd Penny (Capital)	$10,124,635	$9,542,045	6.11%
BBB Sales Tax	$1,234,731	$1,183,483	4.33%
Total	$21,484,001	$20,268,243	6.00%