Retail trade produced the most gross sales in the state in 2016, at $27.6 billion or 40.8 percent of the state’s total. Wholesale trade placed second with 24.6 percent of the state’s total gross sales while the service industry accounted for 15.2 percent.
With 15.4 billion in gross sales, Minnehaha led all other counties, but decreased its share of the state total from 24.1 percent to 22.8 percent. Buffalo county placed last out of 66 counties, at just $10.2 million in gross sales.
In 2016, metropolitan areas in the Rushmore State produced $26.2 billion in gross sales, down from $26.4 billion in 2015. The state’s micropolitan and rural areas gross sales declined from 2015. Rural areas in the state collected $7.5 billion in gross sales, down from $8.5 billion in 2015. Micropolitan areas in South Dakota decreased by $300 million from 2015-2016.
A Note About Gross Sales Data
Gross sales are reported to the South Dakota Department of Revenue by businesses and organizations. The department aggregates these numbers and provides them to the public on a monthly basis. The state has no authority, however, to audit these reports for accuracy. In the past, significant taxpayer errors have come to light. In 2007 and 2008, for example, taxpayer errors likely contributed to an overstatement of gross sales in Rapid City by more than $1 billion. In the charts below, the totals reflect gross sales as reported by taxpayers without any corrections or adjustments by the state.
Rapid City saw a substantial increase of nearly $907 million in real annual gross sales from 2015 to 2016 to a total of $6.04 billion. The largest increase was seen in services, which grew by just over $1.0 billion. Retail trade saw the largest decline in 2016, decreasing by $131 million.
Gross sales fell in Sioux Falls, decreasing 7.9 percent from 2015 to 2016 to a total of 14.8 billion dollars. Retail sales contributed the largest portion to total gross sales and came in at $9.2 billion, an increase of $417.4 million. Meanwhile, the services industry decreased from $4.0 billion to $2.5 billion.