{KXLG – Watertown, SD} New data reveals a positive trend in the City of Watertown’s sales tax revenue for the first three months of 2025, according to a recent analysis confirmed by the Chief Financial Officer. The figures indicate a consistent year-over-year increase in both the general and capital sales tax pennies, suggesting a stable and potentially expanding local economy.
The data, comparing sales tax revenue from January to March 2025 with the same periods in 2024 and 2023, shows a steady upward trend.
Key Highlights from the First Quarter:
First Penny (General 1%): The city collected $802,708 in January 2025, representing a 0.58% increase from January 2024, when it collected $798,101. This growth continued into February with $768,158, a significant 3.27% rise compared to February 2024 ($743,862). March saw the most substantial increase in the first quarter, with $888,996 collected, a notable 3.79% jump from March 2024 ($856,529).Second Penny (Capital 1%): Mirroring the trend of the first penny, the capital sales tax also experienced consistent growth. January revenue reached $802,708 (0.58% increase), February saw $768,158 (3.27% increase), and March climbed to $888,996 (3.79% increase) when compared to the same months in the previous year.BBB Sales Tax: This dedicated sales tax also demonstrated positive momentum in the early months of 2025. January collections totaled $88,653, representing a 2.43% increase from January 2024, when they were $86,549. February showed a more significant surge, reaching $96,375, a 7.78% increase from February 2024’s $89,422. March continued this trend with $106,463 collected, an 8.09% increase compared to March 2024 ($98,493).
Year-to-Date Performance:
Looking at the year-to-date figures (January to March), Watertown has collected a total of $2,459,862 for both the first and second pennies in 2025, representing a 2.56% increase compared to the $2,398,492 collected during the same period in 2024. The BBB sales tax has also seen a substantial year-to-date increase, with $291,491 collected in 2025, a significant 6.20% rise from the $274,464 collected in the first three months of 2024.
Overall Trend:
The data indicates a strong and growing economy in Watertown. The steady increases in all three sales tax categories during the early months of 2025 show high consumer spending and economic activity in the city. Although data for April, May, and later months is not yet available, the performance in the first quarter offers a positive outlook for Watertown’s finances.
KXLG News has contacted city officials for further information and will likely discuss it on the upcoming “From the Halls of City Hall.”