Watertown, SD Sales Tax Revenue Tops $5.6M in First Half of 2026 as Hospitality and Tourism Collections Rise
Northeast Radio SD News – Watertown, SD - Municipal sales tax collections in Watertown reached over $5.61 million through the first six months of 2026, marking a 4.08% increase over the same period last year.
According to the city’s latest sales tax comparison report, both the 1st Penny General and 2nd Penny Capital Improvement taxes generated $5,618,898 through June, up $220,131 from the $5,398,767 collected during the first half of 2025. Over the most recent 12-month period, general and capital sales tax receipts totaled $11,411,363, reflecting a 4.60% expansion over the prior 12-month period.
Monthly collections peaked in June 2026, with the 1st and 2nd Penny funds each bringing in $1,103,656—a 3.45% increase compared to June 2025. May also recorded strong performance, topping the $1 million mark at $1,003,732.
Hospitality and Tourism Lead Revenue Growth
The city’s Bed, Board, and Beverage (BBB) sales tax experienced even stronger growth, surging 11.14% year-to-date. Total BBB collections for the first six months reached $710,965, up $71,269 from the $639,696 recorded during the same timeframe in 2025.
BBB revenues posted double-digit percentage gains in four of the first six months:
· March: $124,916 (+17.33% vs. 2025).
· April: $119,958 (+16.18% vs. 2025).
· January: $100,820 (+13.72% vs. 2025).
· June: $139,124 (+13.71% vs. 2025).
February was the only month to show a slight decline in BBB tax revenues, falling 4.28% year-over-year to $92,249. Over the trailing 12-month period, total BBB revenue stands at $1,414,438, a 7.47% increase over the prior 12-month total of $1,316,089.
First-Half 2026 Financial Summary
· 1st Penny General Tax (YTD): $5,618,898 (+4.08% / +$220,131 vs. 2025).
· 2nd Penny Capital Improvement Tax (YTD): $5,618,897 (+4.08% / +$220,130 vs. 2025).
· BBB Tax (YTD): $710,965 (+11.14% / +$71,269 vs. 2025).
· Peak Monthly Collection (General/Capital): June 2026 at $1,103,656.
Peak Monthly Collection (BBB): June 2026 at $139,124.
