RAPID CITY, S.D. – Rapid City’s sales tax collections for July showed “significant growth” according to City officials, reflecting continued growth across most sectors of the local economy.

The July report will be presented at Wednesday’s Legal and Finance Committee meeting.

General two percent sales tax revenues increased 6.7 percent compared to July 2025. The July performance follows June’s sales tax report, which tallied a 6.6 percent increase compared to June 2025.

Year-to-date collections in Rapid City are trending 5.8 percent above the 2026 budget projection.

Rapid City Finance Director Daniel Ainslie said the July figures are “indicating stronger than expected economic activity”.

Ainslie noted tourism activity grew 6.2 percent in July, marking the strongest month for tourism in the last half year.

“This robust tourism revenue is vital because it reduces local dependence on property taxes while providing substantial funding for government operations and capital improvements throughout our community,” Ainslie said.

“July was a big month that included several days of celebration for the Real America 250 Birthday Bash events, which attracted large numbers of both residents and visitors who spent considerable time in Rapid City for the extended holiday period,” Ainslie added.

In addition to tourism and general sales tax collections, sales tax receipts were up by more than $880,000 year to date for Capital Improvement Fund classifications and more than $637,000 year to date for Vision Fund classifications compared to 2025 receipts.

Ainslie indicated that while sales tax collections in Rapid City continue to exceed budget projections, the cost to deliver City services and perform repairs on city roads, parks, and facilities continues to climb.

The City’s Legal and Finance Committee meets Wednesday at 12:30 p.m. in Council Chambers at City Hall.

The General Fund supports police, fire, library, parks and recreation, and other core operational services in Rapid City. The Capital Improvement Fund supports infrastructure reconstruction and upgrades, including road construction, overlays, park improvements, and community facility enhancements. The Vision Fund finances legacy and quality of life projects in Rapid City, such as past improvements to The Monument, the Roosevelt Swim Center, and Mount Rushmore Road.