South Dakota: Farm Woes Impacting State Tax Collections

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South Dakota’s state economist noted last week that the “sluggish farm economy” as he put it,  is hurting the state’s sales tax collections. Sales tax revenue in FY2025 was down 0.6%, but recent months’ collections were somewhat better y/y. In the supplemental slides to the Governor’s December 2, 2025 budget address, the state forecasts slow employment and income growth in 2026 and 2027. The below is reproduced from that slide deck.



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