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BFM Predicts 3.6% More Consumer Spending, 3.3% Less Sales Tax

The Bureau of Finance and Management told the Appropriations Committee last week that sales and use tax revenue will drop 3.3% in Fiscal Year 2024 compared to FY 2023:

Bureau of Finance and Management, fiscal projections for FY 2024, presentation to Appropriations Committee, 2023.07.26.
Bureau of Finance and Management, fiscal projections for FY 2024, presentation to Appropriations Committee, 2023.07.26.

The Legislature cut sales tax from 4.5% to 4.2% as of July 1, so if consumer spending stayed the same, sales tax revenue would drop 6.7%. Evidently BFM expects that consumer spending in South Dakota will increase this fiscal year by 3.6%. That’s well below the average annual growth in taxable sales over the past decade of 6.8%, which suggests that if South Dakota’s economy was booming over the past decade, it will only half-boom in FY2024.

5 Comments

  1. Richard Schriever

    I am pretty sure this is a “conservative” (also known as pessimistic, scariest, worst case-basis) estimate.

  2. O

    John, the line I’m hearing from some Democrats abioout the economic success of Biden/Bidenomics is, “Numbers don’t lie, but Republicans do.” It is amazing how a strong Democrat engineered economy pays so little in political approval.

  3. P. Aitch

    It was James Carville who famously said, “It’s the economy, stupid!” Carville was an elections strategist for then-Governor Bill Clinton, and he helped Clinton beat President George H.W. Bush in 1992 in the midst of a recession that left many Americans out of work and in debt.

  4. P. Aitch

    *post above was from GOOGLE.com – calm down DaveEffYou. 😁

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