Revenue collections are up for the first quarter of the state’s fiscal year.
That’s despite budget hawks signaling a slightly lower sales tax forecast earlier this year. They remain cautious.
Generally, it’s good news when sales tax collections are up—even if they’re slightly up—especially given the uncertainty in the ag sector this year.
According to numbers from the South Dakota Bureau of Finance and Management, sales tax is up by 3.4 percent from adopted.
Department of Revenue Secretary Jim Terwilliger says the state is right where it should be, given that 4 million acres went unplanted this season.
Terwilliger says he’s cautious over what things will look like through the next year. He says discretionary spending could taper off heading into the holiday season.
“Right now we are pretty well just right on track of where we need to be,” Terwilliger says. “Really, that holiday spending season coming up here in November and December will tell us a lot more, as well, before we get into the main run of the legislative session.”
Terwilliger says the department of Revenue and Bureau of Finance and Management are looking ahead to Fiscal Year 2021. It’ll be the first year the ban on internet access tax is in effect.
Terwilliger says that could result in anywhere from a 20 to 25 million dollar shortfall.