PIERRE, S.D. – South Dakota’s sales tax revenue is falling short and uncertainty over tariffs could make it worse.
Ten months into the budget year revenue is nearly $3 million below lawmakers’ projections. State officials say a slow economy and a recent sales tax cut are dragging down collections with just a one percent gain expected this year.
Some business owners say they’re holding off on investments until there’s more clarity on tariffs.
With sales tax being the state’s top revenue source since South Dakota doesn’t have income tax, officials say they’re keeping a close eye on the economic ripple effects and urging flexibility as the outlook remains uncertain.
