(Pierre, SD) — South Dakota’s sales tax revenue is falling short, and uncertainty over tariffs could make it worse. Ten months into the budget year, revenue is nearly three million dollars below lawmakers’ projections. State officials say a slow economy and a recent sales tax cut are dragging down collections, with just a one-percent gain expected this year. Members of a governor-appointed panel worry that President Trump’s push for higher tariffs could slow spending even more. Some business owners say they’re holding off on investments until there’s more clarity. With sales tax being the state’s top revenue source, officials say they’re keeping a close eye on the economic ripple effects and urging flexibility as the outlook remains uncertain.
