PIERRE, SD (KELO) – One of the reasons the South Dakota State Government was able to publish a record budget surplus of $ 85.9 million this week, its biggest source of tax revenue also had a record year.

The state’s 4.5% sales and use tax revenue rose about 14% in the fiscal year that ended June 30, the economist at the state said on Wednesday. Derek Johnson State.

“And this is historic sales tax growth,” he told the legislature Credit committee.

For comparison, South Dakota experienced a more typical growth rate of 4.6% and above over the past year.

Sales plunged in April and May 2020 as the coronavirus pandemic took hold in South Dakota, and this was reflected in much smaller collections in May and June 2020.

But business activity jumped in July 2020 and hasn’t stopped.

The bump appeared to coincide with the billions of dollars the federal government has distributed across the country in COVID-19 aid to people, businesses, hospitals, schools, local governments and states.

Looking back, South Dakota sales tax revenue grew about 8.9% in 2011, but this year has been negative, according to Johnson.

“From there, you have to go back to 1994 to find anything over eight percent,” he said.

State revenues from all sources exceeded expectations by $ 62,011,540, while various branches of the state government spent $ 23,863,600 less than expected, according to a summary of the Governor’s Office of Finance and Management.

Morgan Gruebele, the bureau’s chief budget analyst, said the state’s Education Department canceled the largest amount at $ 10.3 million.

Much of that comes from savings on per-student aid to K-12 schools which saw lower-than-expected enrollment, she said.

The Department of Social Services returned more than $ 3.3 million. The Department of Corrections returned more than $ 3.1 million. The Department of Social Services reimbursed $ 2.4 million.