Sales tax revenue decreased for the 2024 Sturgis Motorcycle Rally. (Photo by Jon Sailer on Unsplash)

Sturgis Motorcycle Rally generates $1.4M in tax revenue

PIERRE, S.D. – The South Dakota Department of Revenue estimates tax collections from the 2024 Sturgis Motorcycle Rally were $1,399,501, according to a news release. Taxes collected included state sales tax, tourism tax, municipal sales tax, and municipal gross receipts tax.

The tax collections are roughly $47-thousand less than last year’s event which was $1,446,526.

According to the South Dakota Department of Revenue, state sales tax accounted for the bulk of the collections, totaling nearly $791-thousand ($790,805). At this time last year, the DOR had collected almost $819-thousand ($818,784) in state sales tax.

The department’s 2024 collections also included $271-thousand ($271,322) in state tourism tax and $337-thousand ($337,374) in municipal taxes.

The 2024 rally had 896 temporary vendors, 17 less in attendance than 2023. Income from temporary vendors in the Black Hills was down 3% compared to 2023.

The Northern Black Hills, encompassing Sturgis and other communities in Meade and Lawrence counties, generated $992,067 in tax revenue from 699 vendors. This represents an 8% decrease compared to the previous year.

Meanwhile, the Southern Black Hills, including Rapid City, Custer, Hill City, and Keystone, saw a 12% increase in tax revenue from temporary vendors. The 197 vendors in this region contributed a total of $407,434 in taxes.

Despite reduced sales tax revenue in 2024, the Sturgis Motorcycle Rally remains a significant economic event for South Dakota, attracting thousands of visitors and generating substantial revenue for local businesses and communities.

The preliminary tax collection figures provide a snapshot of the rally’s economic impact.

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