Brookings Banter

My interest in taxable sales is two fold.  The first is it good indicator of the local economy.  People have money to spend, and are spending it in Brookings.  Second, sales tax is our largest revenue source.  More sales tax, better city services.

I used the data available on the Department of Revenue's web site for this post.

For the first 7 months of 2007 taxable sales has increased 27% over the same period in 2006.  This is following an increase of 18% for the year 2006 compared 2005.  So far every month in 2007 Brookings taxable revenue has been greater than Mitchell's moving us from 6th to the 5th in largest taxable sales for a city in South Dakota.  Watertown, Aberdeen, Rapid City, and Sioux Falls all have a greater taxable sales base.

The general consensus this year has been the increase is due to the opening of Lowes and a general increase in retail retention.  Although we have had super retail growth over the past 1 1/2 years, the increases are more a result of increases in sales of services.  In fact, retail in 2005 accounted for 61% of taxable sales, in 2006 it dropped to 56%, and so far in 2007 it is 51%.  In 2006 retail taxable sales increased 8% and services 33%.  So far this year retail has increased 12% and services  47%.

Our growth in retail is terrific, but the service sector is growing at a higher rate.  All the more reasons to continue to focus on retail development.