March is big business for Sioux Falls; from convention center shows to the Summit League Basketball Championships, the city collected $515,000 in entertainment tax revenue. With another basketball tournament in the mix, city officials are expecting another boost.
The penny entertainment tax will be out in full force over the next few weeks as action at the Arena and Convention Center and now the Sanford Pentagon, heats up.
"Of the winter months, March is the bigger month of the season. We're excited about that. Always look forward to those big events bringing a lot of people to town and hopefully spending a lot of money," City of Sioux Falls finance director Tracy Turbak said.
Turbak says the taxes collected in March on things like event tickets, alcohol, restaurant bills or hotel rooms, are reflected in April's report. Last year, the city's take saw a more than $20,000 increase from 2012. With the four-day NSIC Basketball Championships new to the mix this year, another boost could be coming.
"I think that's great. The more we can bring events to town, whether it's in March or any other time of the year, we love to see that. It just creates economic activity and of course, the city benefits from that by generating a little more sales tax dollars to support city services," Turbak said.
Revenue from the entertainment tax goes to major repairs, maintenance and operating expenses of some city facilities like the Arena and the Orpheum. While tax collections peak in the summer months, March's activity gives the city something to look forward to in the winter.
"It's right up there with the June, July and August collection. It's very good," Turbak said.
The city collected just over $6 million in 2013, a $300,000 increase from 2012. The biggest month for collections is August. The September report last year boasts a $570,000 take.