STURGIS - The City of Sturgis is continuing to see steady growth in both general sales tax collections and tourism-related revenue in the first quarter of 2026. 

According to the March 2026 sales tax report presented to the Sturgis City Council Monday, general sales tax collections increased 8.5 percent compared to March of last year. Year-to-date, collections are up 3.08 percent over 2025 and nearly 13 percent over 2024, signaling a consistent upward trend. 

City Administrator Aaron Jordan said he hoped the numbers signal a stabilization in the economy.

“We’re above where we were last year and above where we were in 2024. We are right on track of what we were anticipating for 2026,” he told the council. “It’s a positive sign for the city as we look at maintaining services and planning for future needs.”

Revenue from the city’s 2 percent municipal sales tax is a key funding source for essential services and long-term investments. Half of the revenue supports the General Fund, which pays for Police, Fire, Parks, Library, and other day-to-day operations. 

Another 45 percent is directed to the Capital Improvement Fund for projects like road work, park enhancements, and facility upgrades, while the remaining 5 percent supports equipment replacement. 

Tourism-related revenue was also on the rise.

The Municipal Gross Receipts Tax (MGRT), commonly referred to as the BBB tax, which applies to lodging, restaurants, alcohol sales, and event admissions, saw a significant jump in March, increasing 22.97 percent over the same month last year. Year-to-date, BBB collections are up 8.16 percent over 2025. 

Revenue from the BBB tax is restricted to specific uses, including promotion of the community, operation and development of civic and recreational facilities, and investments that support tourism and quality of life. 

Together, the increases in both general sales tax and BBB revenue highlight a positive financial outlook for the city of Sturgis, with continued growth across both everyday economic activity and visitor-driven spending, the city administrator said.