Deadwood sees retail sales increase amid gambling decline
DEADWOOD, S.D. (AP) — Deadwood’s gambling revenue may have fallen, but the city’s retail revenue appears to be booming.
A report by the South Dakota Retailers Association found that Deadwood’s sales tax revenue over May 2017-18 increased by more than 25 percent from $165,525 to $207,550, the Black Hills Pioneer reported . From April 2017-18, Deadwood’s sales tax numbers grew more than 20 percent from about $234,400 to $282,700.
Deadwood racked up $67.4 million in retail sales last year, compared to $62.6 million in 2016.
“This is in contrast to other towns in the region that showed flat or decreased sales tax numbers,” said Julie Koth, who helps run clothing store Madame Peacocks. Koth said her business may experience their best year yet if retail sales tax numbers stay on track in coming months.
Koth said other retailers have been seeing sales increases as well.
“One of them even mentioned they had to check their numbers twice to make sure it was right,” she said.
Deadwood Finance Officer Mary Jo Nelson said the city’s sales tax has increased by 11 percent over the same period in 2017.
“The 20 percent increase in May of 2018 is attributable in part from a dip in returns filed in May of 2017. At that time our sales tax revenue decreased by 17.88 percent,” Nelson said. “These types of things may occur from month to month and there are times additional revenue comes our way as a result of an audit, so it’s best to take a step back and focus on the revenue over time. That being said, I am extremely pleased with an 11 percent increase in revenue received from January to June of this year.”
Deadwood Chamber of Commerce Executive Director Lee Harstad expects even higher tax receipt increases as businesses expand offerings to the city’s visitors.
Information from: Black Hills Pioneer, http://www.bhpioneer.com