PIERRE, S.D. (KELO) — State government’s latest revenue report shows people spent a lot of money in South Dakota during October.
November collections of the state sales tax on October transactions were up $12,580,002 — yes, 14.5% — in comparison to November one year ago.
The rest of state government’s November receipts from ongoing revenue sources fought to a near draw. Overall, ongoing revenues were up $12,659,485, or 6.6%.
State government’s budget year runs July 1 to June 30. Comparing July through November totals, ongoing revenues are ahead of a year ago by $110,358,243 or 14.4%.
State economist Mark Quasney provided an hour-plus overview to the state Banking Commission on Thursday. He said there were two big reasons for the sales tax performance.
One has been construction of six wind farms for electricity production. Activity at those sites reflected nearly $1.8 billion of investment, much of it subject to the state sales tax.
“That’s really one-time in nature. It won’t continue,” Quasney said.
The other has been more than $5 billion of federal coronavirus assistance pumping through the South Dakota economy.
For perspective, South Dakota’s gross domestic product totaled $54.9 billion in 2019 .
“We would expect it would be difficult to maintain the growth rates that we’re seeing,” Quasney said.