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Tourism Tax

Gains In Metro Areas Drive SD Tourism Tax Upward Trend

Taxable tourism sales in South Dakota increased by 0.8% for 2017, continuing a six-year upward trend, though much slower than the previous year’s gain of 10.5%. The state recorded an eight-year high of nearly $853 million in taxable tourism sales, up from $845 million in 2016 (if figures are inflation-adjusted for 2017 dollars).

The Black Hills region—driven largely by the Pennington, Lawrence, Meade and Custer counties—delivered nearly half (46.9%) of the state's taxable tourism sales in 2017. Pennington County (home to Rapid City and Mount Rushmore) maintained its commanding lead, netting 28.6% of the state's taxable tourism sales in 2017. 

No. 2 Minnehaha County (home to Sioux Falls) put up nearly half of Pennington’s share at 14.1%. No. 3 was Lawrence County (home to Deadwood) at 9.2%, followed by No. 4 Meade County (home to Sturgis) at 4.7% and No. 5 Custer County at 4.4%. 

Lodging accounts for the vast majority of the state's taxable tourism sales. That sector made up 55.1% of taxable tourism sales in 2017. The No. 2 sector, shops and markets, accounted for 10.2% of taxable tourism sales in 2017, up from 2016’s 9.0%. No. 3 visitor attractions accounted for 8.9% of taxable tourism sales in 2016, up 0.3% since 2016.

Recreational services and rentals accounted for 8.8% of 2017’s taxable tourism sales, up significantly from 5.4 in 2016. Restaurants totaled 3.9% of total taxable tourism sales, a nine-year high for that sector. Spectator events and "other visitor-related businesses" represented less than 0.5%, and 1.2%, respectively. 


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