Tax revenue $1.45 million at 2023 Sturgis Motorcycle Rally

Surge in alcohol and drug incidents plagues Sturgis Motorcycle Rally midpoint.
Surge in alcohol and drug incidents plagues Sturgis Motorcycle Rally midpoint.(Humberto Giles-Sanchez)
Published: Aug. 25, 2023 at 1:34 PM MDT
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STURGIS, S.D. (KEVN) - The South Dakota Department of Revenue estimates tax collections from the 2023 Sturgis Motorcycle Rally amounted to $1,446,526. However, revenue from temporary vendors in the Black Hills decreased by 6% compared to 2022. The majority of the collections came from state sales tax, which totaled $818,784, down from the $902,399 collected at this time last year. State tourism tax contributed $273,860 to the total, while municipal taxes accounted for $353,883.

The decrease in revenue can be partly attributed to the reduction in the state tax rate from 4.5% to 4.2%, which went into effect on July 1, 2023. Despite this, the 2023 rally still drew a significant number of temporary vendors, with 913 in attendance, only four fewer than in 2022.

In terms of location, the Northern Black Hills, which includes Sturgis and other communities in Meade and Lawrence counties, collected $1,075,750 in tax from the 725 vendors present, an 8% decrease from last year. Meanwhile, the Southern Black Hills, which includes Rapid City, Custer, Hill City, and Keystone, had 188 temporary vendors and collected a total of $363,104 in tax, a decrease of 5% from 2022.

Overall, the taxes collected at the 2023 Sturgis Motorcycle Rally included state sales tax, tourism tax, municipal sales tax, and municipal gross receipts tax.