South Dakota Department of Revenue officials report that Madison's sales-tax revenue for November 2020 was down by a 6% when compared to the sales-tax revenue collected in November 2019.
State officials calculated that Madison collected about $313,200 last month from taxable retail sales, a decrease of about $19,800 from the revenue collected during November 2019. Madison's total for the previous November was $333,000.
Last month's sales-tax total was a turnaround in monthly revenue results for the city. During October 2020, Madison's sales-tax total was calculated at $354,500, about $34,300 higher than October 2019.
The city of Brookings also experienced a similar drop -- of 6.3% -- when comparing the last two November totals. Brookings had a November sales-tax collection of $1.31 million last month, compared to $1.4 million in revenue during November 2019.
For other communities in the region, the sales-tax revenues were:
-- $22,600 for Colman last month, up 20.8% from $18,700 in November 2019.
-- $49,600 for Flandreau last month, down 13.8% from $57,600 in November 2019.
-- $35,960 for Howard last month, up 16.7% from $30,800 in November 2019.
-- $7,450 for Wentworth last month, up 50% from $4,960 in November 2019.
Among the largest cities in South Dakota, the November comparisons were uneven. Sioux Falls saw a 3% decrease with $12.19 million collected last month, but Rapid City had a 7.9% increase with $5.75 million collected. Aberdeen experienced a 23% increase from November 2019 to November 2020 with the monthly revenue totals increasing from $1.59 million last year to $1.95 million this year. Watertown had a 5.3% increase during the last two Novembers with the monthly totals increasing from $1.45 million to $1.52 million. Mitchell saw a 2% decrease with the November totals falling from $1.069 million last year to $1.047 million this year.
State revenue officials have released data about South Dakota's remote-sellers' sales tax -- which includes sales taxes collected from internet sales -- related to certain communities in the state, including Madison. At the S.D. Revenue Department website, staff members have posted the remote-sellers' totals for October and November.
For November, Madison's remote sales-tax total amounted to $20,430, up slightly from the city's October total of $20,403.
In comparison, Colman's November total was $2,308, Flandreau's total was $3,163, Howard's total was $2,714, and Wentworth's total was $1,019.
A South Dakota law went into effect on Nov. 1, 2018, requiring online businesses to pay sales taxes if they conduct at least $100,000 in gross sales in at least 200 transactions in the state. In addition, a state law requiring marketplace providers, such as eBay and Amazon, to pay sales taxes went into effect on March 1, 2019.
The Sioux Falls Argus Leader reported in mid-2019 that the state Department of Revenue had issued 3,382 business tax licenses to remote sellers and marketplace providers. The revenue department had also collected $15.9 million in state and local taxes related to those licenses. The state's share of that money was $11.5 million, and the remaining amount was sent to municipalities.
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