Watertown, SD Sales Tax Revenue Tops $16 Million Through August 2026
Northeast Radio SD News – Watertown, SD - The City of Watertown’s latest Sales Tax Comparison History report shows sustained growth across municipal tax collections through August 2026, with both the 1st Penny General Fund and 2nd Penny Capital Improvement Fund up 4.92 percent year-to-date and the city’s Bed, Board, and Booze (BBB) hospitality tax up 8.18 percent compared to the first eight months of 2025.
Across all three municipal sales tax categories combined, Watertown collected $16,281,521 from January through August 2026—an increase of $791,498 over the $15,490,023 collected during the same eight-month period in 2025, and $1,776,883 ahead of the $14,504,638 collected through August 2024.
August 2026 Performance and Summer Peak Breakdown
In August 2026, Watertown’s core retail and general business activity posted a fourth consecutive month above the $1 million mark per penny:
· 1st Penny General (1%) & 2nd Penny Capital (1%): Both funds collected $1,014,624 in August 2026, representing a 5.44 percent increase ($52,358 per penny) over August 2025 collections of $962,266, and up from $895,605 in August 2024.
· Four Straight Months Over $1 Million: General and Capital penny collections exceeded $1 million in May ($1,003,732), June ($1,103,656), July ($1,017,917), and August ($1,014,624). July produced the largest single-month year-over-year gain of 2026 at 9.26 percent (+$86,274 per penny over July 2025), while June marked the highest single-month dollar total of the year at $1,103,656.
· BBB Sales Tax (August): Following six consecutive months of year-over-year gains from March through July, BBB sales tax collections totaled $128,578 in August 2026—down 6.85 percent (-$9,455) compared to a record $138,033 in August 2025, though still $10,287 higher than the $118,291 recorded in August 2024.
Year-to-Date Totals and Eight-Month Statistical Summary (Jan. – Aug. 2026)
Through the first eight months of 2026, every single month of 1st Penny General and 2nd Penny Capital collections has outperformed both 2025 and 2024 levels:
· 1st Penny General (1%) Year-to-Date: $7,651,439 in 2026, up $358,763 (+4.92 percent) from $7,292,676 through August 2025 and up from $6,825,187 through August 2024. Across the eight reported months of 2026, monthly collections averaged $956,429.88 (median: $978,746.00; standard deviation: $99,373.63), ranging from a low of $804,349 in February to a high of $1,103,656 in June.
· 2nd Penny Capital (1%) Year-to-Date: $7,651,438 in 2026, up $358,762 (+4.92 percent) from $7,292,676 through August 2025 and up from $6,825,186 through August 2024.
· BBB Sales Tax Year-to-Date: $978,644 in 2026, up $73,973 (+8.18 percent) from $904,671 through August 2025 and up from $854,265 through August 2024. Monthly 2026 BBB collections averaged $122,330.50 (median: $126,747.00; standard deviation: $17,386.45), ranging from $92,249 in February to $139,124 in June. Double-digit year-over-year BBB increases occurred in March (+17.33 percent), April (+16.18 percent), January (+13.72 percent), and June (+13.71 percent).
Month | 1st/2nd Penny 2026 (Each) | 1st/2nd Penny 2025 (Each) | 1st/2nd Penny YoY Change ($) | 1st/2nd Penny YoY (%) | BBB Tax 2026 | BBB Tax 2025 | BBB Tax YoY Change ($) | BBB Tax YoY (%) |
January | $843,562 | $802,708 | +$40,854 | +5.09% | $100,820 | $88,653 | +$12,167 | +13.72% |
February | $804,349* | $768,158 | +$36,191* | +4.71% | $92,249 | $96,375 | -$4,126 | -4.28% |
March | $953,760 | $888,996 | +$64,764 | +7.29% | $124,916 | $106,463 | +$18,453 | +17.33% |
April | $909,839 | $901,220 | +$8,619 | +0.96% | $119,958 | $103,251 | +$16,707 | +16.18% |
May | $1,003,732 | $970,816 | +$32,916 | +3.39% | $133,898 | $122,605 | +$11,293 | +9.21% |
June | $1,103,656 | $1,066,869 | +$36,787 | +3.45% | $139,124 | $122,349 | +$16,775 | +13.71% |
July | $1,017,917 | $931,643 | +$86,274 | +9.26% | $139,101 | $126,942 | +$12,159 | +9.58% |
August | $1,014,624 | $962,266 | +$52,358 | +5.44% | $128,578 | $138,033 | -$9,455 | -6.85% |
Y-T-D (Jan–Aug) | $7,651,439 | $7,292,676 | +$358,763 | +4.92% | $978,644 | $904,671 | +$73,973 | +8.18% |
*Note: In February 2026, 1st Penny General recorded $804,349 (+$36,191) and 2nd Penny Capital recorded $804,348 (+$36,190), resulting in a $1 rounding difference in the year-to-date totals ($7,651,439 vs. $7,651,438). Full-year collections in 2025 totaled $11,191,232 for each penny and $1,343,169 for the BBB tax, compared to 2024 full-year totals of $10,544,485 per penny and $1,289,204 for the BBB tax.
Rolling 12-Month and Six-Month Trend Comparisons
Longer-term rolling benchmarks in the City of Watertown’s report also show steady upward momentum across both retail and hospitality sectors:
Rolling Benchmark Metric | 1st Penny General (1%) | 2nd Penny Capital (1%) | BBB Sales Tax |
Most Recent 12-Month Period | $11,549,995 | $11,549,994 | $1,417,142 |
Prior 12-Month Period | $11,011,974 | $11,011,975 | $1,339,610 |
12-Month Dollar Increase | +$538,021 | +$538,019 | +$77,532 |
12-Month Percentage Increase | +4.89% | +4.89% | +5.79% |
Most Recent 6-Month Period (Mar–Aug) | $6,003,528 | $6,003,528 | $785,575 |
Same 6-Month Prior Period | $5,721,810 | $5,721,810 | $719,643 |
6-Month Dollar Increase | +$281,718 | +$281,718 | +$65,932 |
6-Month Percentage Increase | +4.92% | +4.92% | +9.16% |
